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Trade Like Eric Ebook !

The document outlines Eric's trading strategies, focusing on the concepts of bullish and bearish order blocks, market direction, timeframes, and market structure shifts. It emphasizes the importance of identifying breaks in price movement to make informed trading decisions and includes a specific M5 reentry technique for capitalizing on trends. Additionally, it provides guidelines for trading high-impact news events and stresses the need for a consistent trading approach.
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0% found this document useful (0 votes)
6 views17 pages

Trade Like Eric Ebook !

The document outlines Eric's trading strategies, focusing on the concepts of bullish and bearish order blocks, market direction, timeframes, and market structure shifts. It emphasizes the importance of identifying breaks in price movement to make informed trading decisions and includes a specific M5 reentry technique for capitalizing on trends. Additionally, it provides guidelines for trading high-impact news events and stresses the need for a consistent trading approach.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Trade Like Eric

Eric’s Style All The Way

E-Book Exclusively For Eric Mentorship


Concept of Order Block
Bullish Order Block

To identify and validate a bullish order block,


traders look for a break of structure in the
price movement. This break indicates a shift
in market sentiment and often precedes a
significant upward price movement.

It's similar to recognizing a crowded dance


floor at a party, signaling a hit song. Traders
take note of these breaks as potential
opportunities to buy into the market,
expecting prices to rise.
Example Bullish Order Block In Real Chart
Entering a bullish order block involves waiting for a
break of structure in price movement, indicating a
potential upward trend. Traders typically wait for
confirmation, such as a change of character in price
action, before entering a long position.

This change could be seen in the form of increased


buying pressure or a shift from lower lows to higher
lows. It's like waiting for the perfect moment to join
the dance floor at a party when the song everyone
loves starts playing.
Bearish Order Block

To identify and validate a bearish order


block, traders look for a break of structure
in the price movement. This break indicates
a shift in market sentiment and often
precedes a significant downward price
movement.

It's similar to noticing a clearing dance floor


at a party, signaling a less popular song.
Traders take note of these breaks as
potential opportunities to sell or short the
market, expecting prices to decline.
Example Bearish Order Block In Real Chart
Entering a bearish order block involves waiting for
a break of structure in price movement, indicating
a potential downward trend. Traders typically wait
for confirmation, such as a change of character in
price action, before entering a short position.

This change could be seen in the form of


increased selling pressure or a shift from higher
highs to lower highs. It's like waiting for the perfect
moment to leave the dance floor at a party when
the song everyone loves stops playing.
The Concept Of Direction & Retracement

Market direction shows whether prices are


going up, down, or staying sideways. It helps
traders know the general trend so they can
make better decisions about when to buy or sell.
Traders use tools like trendlines and moving
averages to understand market direction.

When a price breaks above a previous high or below a


previous low, it signals a change in market direction.
This change often triggers a temporary pullback in the
opposite direction, known as a retracement. Traders
watch for retracement levels as potential entry points
to join the new trend established by the breakout.
The Concept Of Timeframes

In trading, a timeframe refers to the duration represented by


each candlestick on a chart. A smaller timeframe means
each candlestick shows shorter price movements.

In the context of family relationships, we can compare


timeframes to generations:

Father: Represents the longest timeframe, similar to a


monthly chart in trading. It provides a broad overview of
price movements over a significant period.

Mother: Corresponds to a DAILY , H4 , H1 chart, offering a


mid-term perspective on price action. It provides more
detail than the monthly timeframe but still covers a
substantial timeframe.

Son: This represents the shortest timeframe, akin to a M30 ,


M15 , M5 chart. It offers a detailed view of price movements
on a day-to-day basis.
In trading, it's essential to adhere to the higher
timeframe (Father), but it's not wrong to trade
the lower timeframe (Son) as long as you know
the direction from the higher timeframe.

Similarly, in family institutions, the 'Son' must


obey the 'Mother', and the 'Mother' must obey
the 'Father' because the 'Father' is the head of
the family. However, sometimes the 'Father'
also needs to listen to the 'Mother'. Based on
this, you can relate to the indicated
timeframes.
What Is MSS & CHOCH

Market structure shift and change of character are


terms used in trading to describe important changes
in how prices move.

1. Market Structure Shift: This happens when the


usual pattern of price movement changes, suggesting
a possible shift in the overall trend. For example, if
prices were going up steadily and then suddenly start
going down, it indicates a shift from an uptrend to a
downtrend.

2. Change of Character: This is when there's a


noticeable change in how prices react in the market.
For instance, if prices were consistently making
higher highs and higher lows but then start struggling
to make new highs, it suggests a change in the market
sentiment.

In simple terms, these concepts help traders spot


when things are changing in the market, which can be
important for making trading decisions.
Example Of Choch & MSS

Choch/Mss Occured On Uptrend

when CHOCH and MSS occur during an


uptrend, they signal a change in the market
dynamics, hinting that the uptrend may be
losing strength and potentially reversing
into a downtrend.

This information helps traders adjust their


strategies accordingly, such as considering
selling positions or adopting a more
cautious approach.
Choch/Mss Occured On Downtrend

when CHOCH and MSS occur during a


downtrend, they signal a change in the
market dynamics, hinting that the
downtrend may be losing strength and
potentially reversing into an uptrend.

This information helps traders adjust their


strategies accordingly, such as
considering buying positions or adopting
a more optimistic approach.
Secret Technique Reentry M5

The Eric M5 reentry technique is a simple strategy used


by traders to reenter trends on the 5-minute (M5) chart.
Here's how it works:

1. Spotting CHOCH on M5: Traders watch for a change in


market character on the M5 chart, like shifts in price
behavior.

2. Waiting at Order Block Area: Once they spot a


potential change, traders wait for price to reach a
significant level called the "order block area" on a lower
timeframe for first entry

3. Confirming with Breakout: They confirm the reentry by


looking for a breakout of structure on the Lower
timeframe, like the 5 Minutes (M5) chart, along with
other technical factors like order blocks and Fair Value
Gap

4. Keep reentrying until reach your take profit area to


your maximise profit.
Example of M5 Reentry Technique

H1 Order Block

M5 Confirmation And Reentry With Order


Block Concept
SOP Before to start A day

1. Market Analysis:
- Analyze pre-market news and technical
indicators to identify potential trading
opportunities.

2. Entry and Target:


- Determine entry and target profit areas based on
Order Block levels

3. Risk Management:
- Set stop-loss orders and calculate position size
to manage risk effectively.

4. Confirmation:
- Wait for confirmation signals on lower timeframe
charts before entering the trade.

5. Execution and Review:


- Execute the trade according to your plan and
review each trade afterward to refine your strategy.
How to trade high impact news

Trading news events carries inherent risks due


to their unpredictable nature, but skilled traders
can capitalize on opportunities presented by
sudden market shifts in the last minute before
and during news releases.

This "change of character" can lead to


noticeable price movements or chart patterns,
signaling potential entry points aligned with the
new market direction.

However, traders must have a clear trading plan,


including risk management strategies and an
understanding of both fundamental news and
technical analysis tools, to navigate the
volatility effectively and mitigate risks
associated with trading news events.

Non Farm Employment


Producer Price Index

FOMC
FINAL CHAPTER

Every time we feel a loss in trading, it's essential to


revisit this ebook before moving on to trade. This
ebook is created in this manner because the method
used has never changed. Stick to the same syllabus
and never change it.

The M5 breakout setup is an instant setup where we


can find breakouts every day. Breakouts following
Direction are accurate. So never go against the trend
after Breakout is underway.

Never forget to always follow the daily target that we


have written ourselves. Lastly, we succeed not
because of many techniques. We succeed because
we focus on one technique and apply it in our trading
indefinitely.

I've shown you mine. It’s your choice now.

Trade Like Eric’s Style

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