Video summary
2 Continuation Entry Models I Trade Using Orderflow
Main summary
Key takeaways
Summary (technological concepts / trading “microstructure” features)
The video teaches two specific continuation entry models used in orderflow-style trading (footprint/aggression, imbalances, “big trades”). It emphasizes that the entry model is the least important part—it only works when the rest of the framework (context, bias, location, environment) already aligns.
Core concept behind both models: “acceptance”
- A footprint/aggression signal (like a stacked imbalance or a big trade) is not the trade.
- The trade triggers only when price returns to that liquidity/orderflow area and “accepts” it—meaning it holds/re-enters the zone rather than merely rejecting.
“Print” ≠ signal; the reaction (stall/fail/flip) is the signal.
Common execution structure
Usually a 2-candle process:
- First candle: confirms aggression
- Example: a stacked imbalance forms or a big trade prints with follow-through.
- Second candle: provides execution/retest
- The trader enters after the reaction confirms acceptance.
Model 1: Continuation based on “big trades”
What it is
- Price shows a large/aggressive trade event that pushes through (the “big trade”).
- The trader looks for:
- a pullback into the big-trade area, then
- a flip back in the direction of the intended continuation.
Stop placement (described example):
- For longs: stops are placed below/near the big trade (with room to reduce being wicked out).
Entry conditions (logic)
After the big trade prints, the trader looks for:
- Follow-through, ideally with a strong close (not just a fleeting print)
- On retest: stalling/absorption of the counterparty
- e.g., sellers stall/fail to push lower
- Then: re-engagement of initiative in the desired direction
Entry timing:
- Taken on the retest, where the failing sellers/buyers cause price to flip.
Nuances / filters
- Location in the auction matters heavily (not just any big trade anywhere).
- Not every big trade is actionable:
- You need follow-through after the print
- Preferably the strength appears inside the candle body / strong close
- Size threshold is a noise filter:
- Example given: for MNQ, avoid too-small “big trades”
- Suggested minimum: ~300+
- Even with size: if there’s no acceptance/follow-through, it’s not a trade.
- Prefer a big trade that prints deeper in the candle body rather than “right at the top,” since that suggests more real follow-through.
Stop/target & trade management (example-based)
- Example describes a short execution:
- Stop placed above the big trade(s)
- Target chosen as a multiple (example: ~2R)
- Trade management concepts include:
- moving to break-even after certain structure is formed
- trailing after taking specific prior-candle levels (e.g., prior-candle lows)
Model 2: Continuation based on stacked imbalances
What it is
- Uses stacked imbalances (from tools like ATAS, or described indicators).
- A stacked imbalance reflects sustained one-sided aggression across multiple price levels.
- The imbalance alone is often dangerous/common, so it’s valid only when it’s:
- extreme, and
- aligned with the broader framework.
What triggers the entry
After a strong stack forms, price must:
- Pull back into the stacked imbalance zone
The execution then requires:
- Stalling of the counterparty
- Failure to go through the imbalance area (acceptance)
- A flip back in the continuation direction
Time window reference (from the video):
- Typically within the time of a single 5-minute candle or 15-minute candle, depending on what timeframe is being used.
Entry/stop logic:
- Entry on the retest
- Stop placed on the other side of the imbalance candle that created the stacked imbalance
Key warnings / common mistakes
- Don’t trade weak/partial stacks
- Don’t ignore location and session context
- Don’t enter before the imbalance candle finishes forming:
- while forming, the imbalance can disappear
- Sometimes a second retest never comes and price just runs:
- the trader states they don’t chase
- instead, they wait for later pullbacks to the level and watch for defense
Visualization / “where it sits”
- The example notes stacked imbalance often sits inside low-volume pockets within the candle’s volume profile.
- The decision hinges on how price rejects/accepts relative to that pocket.
Review / guide / tutorial elements emphasized in the video
- The video promises and delivers practical chart examples, including:
- A live-chart walkthrough of a big-trade continuation entry (MNQ on a 5-minute chart)
- A second walkthrough for stacked-imbalance continuation logic (also on 5-minute)
- Repeated emphasis:
- entry models act as a mechanical confirmation layer
- they are not standalone “secret sauce” setups
Sponsor mention (product feature)
- Prop Firm Match: compares prop firms and their challenges in one platform, showing side-by-side rules and reviews; includes an offer code “match”.
Main speakers / sources
- Speaker: “Thrax” (referred to repeatedly as the trader/presenter)
- Tools/sources mentioned:
- ATAS (stacked imbalance indicator)
- TOS (referenced as part of where the imbalance indicator prints)