Types of entry in the marketsTypes of entry in the markets
1- Aggerasive entry for high rewards
2- Conservative entry
3- Highly confirmed entry
Entrypoint
CONFLUENCE TRADING | YOUR KEY TO ACCURATE ENTRIES 🥇
If you are struggling with the identification of accurate trading entries,
you definitely should try confluence zones .
Note: there are hundreds of variations of confluence elements.
In this example, we will discuss trend lines and Fibonacci.
❗️To identify a confluence zone, the price must follow a trend line
(it should match higher lows if the market is bullish;
it should match lower highs if the market is bearish).
Once the trend line is confirmed by at least two touches and consequent reactions ,
you can look for a confluence zone.
1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line.
2️⃣Take the last impulse in the direction of the trend.
Draw a fib retracement based on it
(swing low to swing high in case if the market is bullish,
swing high to swing low in case if the market is bearish).
3️⃣Take the previous impulse (it must be in the same direction as the initial one).
Draw a fib retracement based on it.
4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line.
In case if two retracement fib.levels & trend line match, you found a confluence point.
5️⃣ Apply it as a safe entry point.
You will get a perfect trend following opportunity.
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doge scalp ! doge scalp buy doge 25000 @ 0.38 sell 20000 @ 0.41 on june 10 th buy doge @ 0.40 on next dip and this week we should se the levels of the snl event!! just a theroy not advice personal moves
Entry Techniques : Ambush vs Retest vs ThresholdBackground: Kindly see my Asian Paint Short Trade Idea (Linked Below). Asian Paints was making Lower Lows and Lower Highs and was moving towards its long-term trendline. Hence, I was eyeing a short opportunity in this trade. However, my entry and exit were not great. So I have analyzed different entry techniques (credit to Franklin O. Ochoa - PivotBoss):
My Entry (@2395): My idea was that the trend line was already broken and I should enter the trade. Price reversed the next day to make one more lower high. But my entry was too soon and without any confirmation.
Ambush Entry: It is very Risky. The idea behind this technique in this context is that when the stock has broken the trendline it will go up again near the line joining the lower highs for a test. There a trigger order shall already be waiting for entry. It's risky because a trend reversal may also occur. this technique is to be used when we are absolutely sure about the levels.
Retest Entry: Moderately Risky and the best entry technique. Franklin says that how many times you have seen that the moment you have made an entry, the trade goes against you. The retest entry allows us to avoid this (mostly). The idea is that once we have identified the confirmation candle we place an order for the next day at (High+Low)/2 of the previous day (confirmation day). This would allow us to enter the trade at the wick of the candle (most of the time). This method is less risky and one of the best.
Threshold Entry: It has the lowest risk. The idea behind this is that once you have identified your confirmation candle you place a trigger order higher (or lower in case of a short trade) than the close price of the confirmation candle. This allows you to enter into the trade only if the price is moving in your direction.
Retest entry would have allowed us to enter the Asian Paints Short Trade at a price of 2440. The best thing about retest entry is that it allows us to enter a trade much lower to our stop loss which was 2500 for me in this case. Compare it with my entry. SL with my entry was 105 points away i.e Rs. 31500. But for a retest entry, the SL would have been only 60 points away i.e Rs. 18000. And in trading every rupee matters and every point counts.
Hope this doesn't seem boring :). Best of luck and happy trading.
How to Trade A Range and Potential BreakoutHello Traders,
All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others.
In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout. Entry at these spots doesn't guarantee sure win but minimize our risk and increase the chances of reward. After an entry, stops can be placed below the range or below the prior swing low -- whichever suits the situation.
Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range.
Notes on the chart.
Hit like for better educational publications in future. Comments are welcomed.
Trade safe.
Best Regards
Bravetotrade
