Tips for Managing Entries
Getting your entries right is a big step forward on the path to successful trading. In this post, we’re going over three techniques to potentially improve your entry point and, by extension, hopefully get in trades at more favorable price levels that could ultimately increase your profit per trade.
1. Planning For Breakouts (Or Breakdowns)
Use pullbacks and breakouts to enter at the beginning or end of a trend. Draw out your desired levels, write them down, and get prepared for the exact entry that you see on the chart. Breakouts occur when a market trades through support or resistance levels, signaling a start to a new trend. However, be cautious of fake-outs, and remember to use stops to manage risk. Preparing for breakouts, and clearly marking them on your chart, can help you optimize entries.
On the chart above,
USDCAD pair and an example of a trading range that, if broken through, could signal the start of a breakout. Where would you plan your entry if that happens? This is the type of education we hope to provide.
2. Confirmed Entries Across Multiple Timeframes
Confirm trends by using additional timeframes. For example, if you spot a pullback on a four-hour chart, check a daily chart to confirm the broader trend. Alternatively, you could zoom in even more, for example, on a ten-minute chart, to see short-term buyer or sellers and where the ideal entry might be, as the price nears your desired level.
Using multiple timeframes can help you see the bigger picture, as well as the finer details. This can ensure you’re aligned with both the macro and micro trends.
3. Taking a Broader View
Understand the broader market conditions, including major trends and fundamental factors like economic releases. This holistic approach tells you a few important details about the market, and if it’s moving in the same direction as your trade, or if there’s major news coming that could potentially spur volatility.
We hope these three helpful tips will be valuable on your trading journey, specifically showing you some ways of looking for the best possible entries for your positions. Thank you for reading our latest educational post about becoming a swing trader! Be sure to follow us for more updates and educational resources like this.
MB
1. Planning For Breakouts (Or Breakdowns)
Use pullbacks and breakouts to enter at the beginning or end of a trend. Draw out your desired levels, write them down, and get prepared for the exact entry that you see on the chart. Breakouts occur when a market trades through support or resistance levels, signaling a start to a new trend. However, be cautious of fake-outs, and remember to use stops to manage risk. Preparing for breakouts, and clearly marking them on your chart, can help you optimize entries.
On the chart above,
USDCAD pair and an example of a trading range that, if broken through, could signal the start of a breakout. Where would you plan your entry if that happens? This is the type of education we hope to provide.2. Confirmed Entries Across Multiple Timeframes
Confirm trends by using additional timeframes. For example, if you spot a pullback on a four-hour chart, check a daily chart to confirm the broader trend. Alternatively, you could zoom in even more, for example, on a ten-minute chart, to see short-term buyer or sellers and where the ideal entry might be, as the price nears your desired level.
Using multiple timeframes can help you see the bigger picture, as well as the finer details. This can ensure you’re aligned with both the macro and micro trends.
3. Taking a Broader View
Understand the broader market conditions, including major trends and fundamental factors like economic releases. This holistic approach tells you a few important details about the market, and if it’s moving in the same direction as your trade, or if there’s major news coming that could potentially spur volatility.
We hope these three helpful tips will be valuable on your trading journey, specifically showing you some ways of looking for the best possible entries for your positions. Thank you for reading our latest educational post about becoming a swing trader! Be sure to follow us for more updates and educational resources like this.
MB
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