CBMotivation
Education

How to enter a trade at the right time!

OANDA:USDCHF   U.S. Dollar / Swiss Franc
I get asked all the time about trading entries, so here you are, this is my strategy for how I enter trades based on price action, and while price action doesn't tell you the future, it enables you to read what is happening with the most important aspect on any chart, what is the market willing to pay for an instrument, the price!

This chart is a daily chart , I use long-term charts to find my levels ( support and resistance ) and what the trade is doing over a long period which impacts the short period, if you enter using charts lower than 15m, without getting a signal or level from a chart on a higher time frame, you have a high chance of risk and subsequent loss.

As this chart shows, we rarely miss trades, because there are so many opportunities to try again, and often lower-risk opportunities than trying to find the top or bottom of a move, this is suicide, we are not market movers, leave that to the hedge funds, banks and pension funds, we make money out of their moves, follow them, don't try to change the market or will it to change, you will lose YOUR money.

The Pin bar entry strategy has a high degree of success, it is not a guaranteed trade, they do not exist, but if you research your own charts, on a daily, 4h and 1h timeframe (not lower), you will see them being respected a high degree of the time.

The three try rule is my favourite entry, I use it everywhere, do not enter on the first move up or down unless there is a candle pattern that signals the entry, there are many. But once you have your long-term levels on a chart, and price moves back to that level, watch as volume (and confidence) declines, we get lower highs and the probability to enter a trade increases.

There are thousands of permutations of these entries, no chart is every the same, no entry without risk, but it's your job to find the highest probability trades with the least amount of risk, if you have any questions or comments, I'd be happy to learn or answer your questions.




Comment: I'm always being told on here that new traders fear missing the trade, there is no such thing, there are many hundreds of opportunities per week.

Here's a classic example on Crude if you're patient, lots of opportunity and very little risk.

Thanks for sharing. How about higher TF, is this strategy work well on weekly or monthly chart ?
+1 Reply
@d3fano, It does indeed, with a pin bar it's incredibly accurate, but the pin is often so big, we need to wait for a retracement or significantly change margin size to trade it, I recommend a 50% retracement of the weekly pin.
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This is great!
+1 Reply
CBMotivation nooz100191
@nooz100191, I hope you use it on your trades, it works.
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Thank you very much sir, value able information. I just want to confirm is that planning is valid during news hours as well? As u mentioned about pin points to enter the trade. Thanks
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CBMotivation qasimsaeed
@qasimsaeed, If a trade is already in play and in profit, I rarely care what the news is saying, if it's near profit target, and you're expecting a big move which may impact the trade, CPI for instance, either take a percentage of profit or take it all and re-enter after at a better position. We're in this game to make a profit, not beat the market. But often the news, whether macro or micro, respects the technicals anyway, which is why our entry is so important. With the above chart, I wouldn't care about the news if my entries were this good and my profit and loss targets are accurate.
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qasimsaeed CBMotivation
@CBMotivation, thanks
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