What's new

How to find a good entry point?

4.50 star(s) 2 Votes

Crosta

New Member
In fact, many people pre-judge a period of the market first, and find a position to buy in. As a result, the market does not rise, the stop loss space is very large, and the loss is very serious.

Or the market will always pull back and then rise again, and many people will buy at the high point of the pullback. There is too much room for the pullback, and the floating loss is too large, and many people can't stand it.

Therefore, it is very important to choose a good entry point, and the entry point is not determined by the head, there is a certain amount of experience and methodology.

The first method: market callback golden section + reversal k-line resonance entry
The most basic structure of market trends is the "N" shape in Dow Theory.

When the "N" shape rises, the structure is up → callback → rise, and when the "N" shape falls, the structure is down → callback → fall.

One more sentence: The "N"-shaped structure is almost the logical basis of all technical analysis and technical indicators on the market. Wave theory, Gann theory, winding theory, etc., are actually trading this "N"-shaped.

In actual combat, when the direction is established, the market will start the second callback of the "N" shape, and enter the market when the second stroke of the N" shape returns to the support position and forms a reversal k-line.

Transaction logic:

Market callback test golden section + reversal k-line resonance entry, that is, the second retracement of the N" shape enters the market.

The second call back in the N" shape is the process of continuation of the market’s accumulation of strength. In addition, the call back process has tested the position of the golden section. These positions have a supporting role and require the establishment of the reversal bar. Under multiple resonances, the market reverses. The possibility of transfer is very high.

If the market is established after entering the market, this entry point is almost the starting point of the third round of the "N"-shaped trend in the new round, and the profit-loss ratio will be very reasonable. It is easy to achieve above 5:1.

In actual combat, the establishment of a long or short trend, and then waiting for the opportunity in the callback market, with the golden ratio of 38.2 as the limit, the space between 38.2 and 61.8 as the resistance zone, and the formation of a reversal k-line in the resistance zone will enter the market. The stop loss is set at the lowest point (or highest point) of the reversal bar.

The second way: Golden section support + small level ZigZag breaks in the same direction
This way of entering the market also borrows the N-shaped structure of Dow's theory, and all the operation methods in the early stage are the same as the first method. The difference is that when the market tests the resistance zone of the golden section, it switches to a small-level k-line and uses the k-line pattern to break into the market.

Transaction logic:

The operation of the market is switched by level, and the big trend in Dow Theory is composed of small trends. For example, when a 1-hour long trend is running, a 5-minute long trend must start at the beginning of the market start, gradually expand to 15 minutes, and finally transition to the 1-hour level.

Just like 1 hour and 60 minutes is composed of 12 5 minutes, a period of 1 hour level may go for 3-5 days, and the 3-5 day market must also be composed of very many segments of 5 minutes level.

After the callback of the big-level market is over, we start with the trend of the small level and wait for the market to gradually brew and ferment into a big trend.

Think about it, everyone, this entry is also the start of the market. In layman's terms, it is a 5-minute break into the market to make a one-hour trend. Once the market comes out, it will have a very good profit-loss ratio.

In addition, the standard of this small-level ZIGZAG broken position is very clear, which is convenient for traders to execute.
Position opening mode:

(1) Enter the market in the mode of opening a pending order. After the "Z" indicator forms a breakpoint, place an order for the entry of the break at the break point, and set a stop loss at the same time. When the market breaks down, the order is automatically filled with a stop loss. The advantage of this operation is that you won't miss it if you don't watch the disk.

(2) Open positions manually, and enter the market manually when the market breaks. You need to keep an eye on the market at all times, otherwise you may miss the opportunity to trade.

Notice:

In the data market, do not use pending orders. The data market fluctuates greatly, and the transactions of pending orders are prone to transaction slippage. In this case, manual entry will be more flexible and find the right spot.

summary:

The above two entry methods are trend-oriented trading entry methods, and both have the characteristics of a very reasonable profit-loss ratio. In actual combat, at least a 3:1 profit-loss ratio must be set.
 
This simple phrase “buy low and sell high” is the most common language used in forex but many traders do not adhere to it. The goal is to always buy at the low and sell at the high. Every consistently profitable strategy has this concept imbibed in it, it takes patience to follow through to your plan. Most traders buy or sell when the market is impulsing rather than waiting to buy and sell at the correction which usually offers the traders to buy or sell assets at cheap prices. Usually when you buy or sell when the market is impulsing, most often the market will retrace and put you in a large drawdown before it continues it’s movement
 
This simple phrase “buy low and sell high” is the most common language used in forex but many traders do not adhere to it. The goal is to always buy at the low and sell at the high. Every consistently profitable strategy has this concept imbibed in it, it takes patience to follow through to your plan. Most traders buy or sell when the market is impulsing rather than waiting to buy and sell at the correction which usually offers the traders to buy or sell assets at cheap prices. Usually when you buy or sell when the market is impulsing, most often the market will retrace and put you in a large drawdown before it continues it’s movement
follow the trend Ok hand
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Similar threads

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)

Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock    No Thanks