The Two-Legged Pullback Master Setup EXPLAINED | Price Action Trading For Beginners

The two-legged pullback is the most popular setup amongst price action traders. In this video we are going to take a look at why. Prices on any chart and any time frame moves in pairs of twos, this is tied to human psychology. When traders try something once, they will usually try it again before giving up on the idea.The key with two legged pullbacks is to combine them with KEY ENTRY POINTS to achieve high probability setups.
In this video we will go over how to spot two legged pullback (second entries) because it is the most reliable trading setup out there.

Price action trading is a system of trading where a trader is only relying on his ability to read the naked chart and use Price Action.The Trader is observing the candlesticks as they print on the chart and looking for patterns that repeat themselves over and over again.

The only people who know where the market is heading are institutions. They are the ones who make the market move and our job as a retail traders is to follow their footsteps and get the piece of their movement. As a priceaction traders we need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries at the key entry points.

Date June 18 2021

Key entry points are:
1) Trendlines – after a break we expect a correction or retest of a new extreme
2) Support and resistance lines – most breakouts of trading ranges fail
3) EMA – 21 bar settings
The reason why we look for 2nd entries and not 1st or 3rd entries is tied directly to human psychology.

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The best way to became consistantly profitable is to learn to read the chart in its purest form. There is no holy grail or set of indicators that can make you rich without work. Learning to understand how prices move and why they move is a learnable skill that anyone can achieve.

OUR PRICE ACTIONS RULES WORK IN EVERY MARKET AND EVERY TIMEFRIME.

Priceaction is universal and technical analysis patterns repeat over and over again on consistent basis.

Trading with a fear is the most common fear most trade have. It is crippling and can get your mind frozen. The key to consistancy is to be emotionless and fear nothing in trading.

Key rules of our strategy:
1) Second entried in the direction of a trend
2) Trendlines
3) Failed breakouts
4) Failed second entry counter trend
5) Support and resistance

Target Profit - 10 Ticks
Stop Loss - below signal bar (around 10 ticks)

Overall market context is more important than individual patterns.
Technial analysis works and it repeats over and over.

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[kitwinglo]

bro is the only real price action trader in youtube

[davidreuter]

There’s a lot of guys who can do price action, but can’t teach it in a way learners can grasp quickly, you have a great way of teaching, cheers!

[GulfStory]

Thomas is my best Friend. I'm addicted to this channel✌

[rudysudario]

I’ve studied Al Brooks’ price action method but I did not completely understand the concept of secondary entry. This video just made it clear. Thank you.

[VickieVentures]

I was struggling to understand two-legged pullbacks even after reading and watching Mack (not to say he's not great, he is!). I appreciate how your video helps me have a better understanding. Thank you!!

[alejandrocamarillo]

It's the best explanation I've seen. I've practiced the second entries for one year and all you need is to practice the key points as you explained in this video

[ryenlife]

One of the best explanations i have ever seen.

[sina-nyk]

Pullbacks are one of the best trading positions

thanks for your explanation❤

[kentwist]

Bless you, brother! Best content I've found.. price action is the way to go for sure!

[kingzmenstocks]

i like how you make it easy to understand the complicated

[Surfgarage]

This is the best explanation i have seen in years, thank you. I was very confused today seeing breaks of channels + new lows, but bigger channels still holding.

[michaelf]

Another great video TW. Most (all?) price action setups take advantage of trapped traders, plain and simple. Second entries, two-legged pullbacks, and first breaks of trendlines ALL sucker bad traders into the wrong side - when they're wrong and all have to exit simultaneously is what makes these setups high-probability for us. Yes, it's psychology but I disagree with the explanations that are out there. Think about a downtrend... Price makes a new low, bounces, then turns back down - this is the first entry short. Low probability for us. But if this first move lower doesn't take out the prior low before bouncing again, forming a higher low, dumb longs jump in thinking they're catching a reversal. So when this second bounce fails and turns back down - forming the SECOND entry short - now all the new trapped longs' sell stops get triggered, adding selling pressure and fueling the downmove. All we're doing is entering in the direction of their pain. The same thing happens when a bounce higher takes out the upper downtrend channel line for the first time in a downtrend - dumb longs pile in thinking they're catching a reversal. But we know that a new low extreme is likely and look for shorts, not longs. Why? Because when all the longs are wrong and exit at the same time, their sell exit orders fuel the selloff down to a new low extreme. Same idea with a two-legged pullback to the EMA from below - bulls had TWO tries to take price higher but couldn't even move it above the EMA, so when the upmove stalls again they all hit sell market - driving price back down. So the trapped longs are what make the second-entry short, two-legged pullback to the EMA (in a downtrend), and the first break of the downtrend high-probability, not the sellers trying harder this time after they go back & study some more. Gotta realize the market is ruthless, in order to make money somebody's gotta lose it. What we're doing as price action traders is identifying where the most traders are ABOUT to be wrong so we can anticipate & profit from their exit orders moving the market in our direction - and transferring the money from their accounts to ours. It's war, act accordingly.

[Alicealicealicealicealicealice]

Every time I watch this video I get something new from it. Thank you so much you are so helpful and good at explaining!

[sephtading]

Awesome. Appreciate your great video & work!! Currently practicing the two-legged pullback setup, with a good R:R for every trade.

[deepaksoni]

It's magical sir you have a magical setup .simple effective and again bless you and fulfill all your desire

[KyotouTrader]

This is the kind of content I've been looking for. Learned a lot from your previous videos, especially in your 5 price action trading rules video. Thanks!

[PankajSingh-qlgz]

Very precious information.. thankyou sir

[patpatchng]

i lover ur content. so slowly reviewing of your video. each video i watch 2 x.

[b.k.]

My first try at MFF was unsuccessful, however, I am starting a free trial because I was in profits. I am going to implement the two legs knowledge on my swing strategy, I will give you the updates.

[richardcrook]

Fantastic explanation Thomas. Will be watching this again and again