Forex accurate entries and exits. Forex entry points - where to get a reliable signal. There are three exits from an open position
Forex entry (points of entry into the market) - the main trading strategies and trends
Entry points (in a trade) Forex
1. Points of entry (in the transaction) Forex
1.1 Trading in a trend in Forex
1.2 Strategy for trading breakouts
1.3 Working with a counter-trend (talking about entries)
1.4 Trading in a sideways movement (flat)
2. Forex indicator. When to enter a trade
3. Summary of the search for inputs
There are many ways to find an entry point, each trader has his own tactics. Someone chooses at random, and someone uses their own strategy.
I bring to your attention 7 simple and effective ways to enter the market. These methods, despite their apparent simplicity, are some of the best. These methods have shown themselves well, having repeatedly proved their effectiveness in situations where other methods cannot help, forcing the trader to doubt the adequacy of their decisions and giving false signals. These methods were selected through the study of how to enter the market correctly, and the entry points described in this article work equally well in all markets: FOREX, futures and stocks.
1.1. Trading in a trend on Forex
It is best to enter the market here using trend lines and support and resistance. These are the most optimal points that allow you to enter the market with a high probability of success and a relatively small share of risk. It is better to use limit orders, and only occasionally - market orders, having good reason for this.
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Buy from the uptrend line at the time of the third touch. The uptrend was defined when the price started to rise. We draw an inclined line upward along two rising bottoms. The best entry point is the third touch of the trend line by the price - buy.
The figure clearly shows how an uptrend developed in the market. However, it failed to develop properly, so the close was above the trend. This, in turn, means that the trend is confirmed and will continue. Those who had not yet managed to enter the market on the first day still had a chance to enter the growing market by opening a long position. True, the effect would have been much less.
But when using this technique, you should still find out in advance the price levels, which may vary. It all depends on when exactly the price will touch the trend.
True, this technique also has its pitfalls. Namely, false punctures often occur when the price only creates the appearance of a breakthrough through the trend line, but in fact these are only test breakouts. True, in the early stages it is very difficult to determine whether a breakout is true or not. To do this, you need to wait until the candlestick, on which the breakout occurred, closes and until the next candlestick starts trading. By the way, again let us turn your attention to the drawing.
It clearly shows how the price punctured the trend line, but in the end, the close made it clear that in the future there will still be a bullish play. It always turns out that if the trend is strong, then sooner or later the price will return to it. It is for this reason that a situation often occurs in the market when the price at which the market closes is on the trend line.
At the same time, the probability that the Forex entry point will be correct increases significantly. And even if there is a breakout, the price will still fluctuate around this point for a certain time. By the way, when there is a strong downward price movement in the market against the existing uptrend, this does not always mean that the trend is changing. It's just that at this time the bulls often take a waiting position. They are confident in their abilities and are in no hurry to start the game.
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Here we will enter the market when the price touches the downtrend for the third time. If you look from a different angle, you can see that this point is a mirror image of the situation that was observed at point 1. It turns out that both the trader's action pattern and the point of entry into the market should be mirror-opposite than those that were in point 1. That is, we need to sell assets when the price comes into contact with the downward trend for the third time. Moreover, you need to be able to determine the presence of a trend. For this, a line is drawn along two successively declining price peaks, which have already been built by the market.
1.2. Breakout trading strategy
Breaking through significant levels is considered a more efficient way to make a profit. Often this way associated with stop orders that are triggered directly on the breakout, which provides the opportunity to take a position at the beginning of a rising price impulse. It is better to use limit orders, and open a deal with a subsequent correction.
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Buy from support between the penultimate high and the first Fibonacci levels of the last completed downward price movement. A growing market often shows an upward price movement that develops in a zigzag pattern. In the first third of the trend, when it is marked and the bulls go on the offensive, the bears are still quite strong.
Therefore, after the upward movement, they can reduce the price to the level of the penultimate maximum. Sometimes the fall stops, and then a new upward movement follows. With a strong trend, the depth of decline is up to 23%, less often - 38% of the last fully completed price movement down.
It is in this zone that it is preferable to enter the market to buy.
The figure shows that the most profitable decision would be to buy in the area between the high of 1 and 23.6% from the 1-2 move. Also, focus on the 38.6% movement level 1-3 from top 1, which has similar data to the 23.6% level 1-2 from top 1. At the same time, lines 1-2 or 1-3, which, in principle, , are similar, are considered as a completed movement. Segment 2-4 is a completed upward movement, while segment 4 and down in the direction of the arrow is an unfinished downward movement.
Selling from resistance between the penultimate low and the first Fibonacci levels of the last completed upward price move. Everything is mirrored to point 3.
1.3. Working with a counter-trend (talking about entries)
Suppose the trend is downtrend. The price breaks out the upper level (Fig. 3), fluctuates slightly at the top, again falls below the level and again breaks it upwards. The resistance level becomes the support level, so you should buy.
The figure shows how to open a long position from a downtrend, which, after the price passed through it, has already become a support line. And even though the market went down after a while, the trader would still be able to make a certain amount of profit in a 300-point movement in the euro.
For reliability and in order to receive additional signals confirming the break of the trend, you can determine the depth of the correction using Fibonacci levels.
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Selling against the counter-trend. The trend is upward, the rest is mirror-symmetrical to point 5. That is, at in this case we will sell off the counter trend. Opening a long position from a countertrend, which was previously positioned as an uptrend, and at the same time played the role of a support level, and after the price broke this level, it automatically became a resistance level - this is a very correct and reasonable move.
This method is used by many professionals, as it is considered one of the most reliable and correct ways to take a vantage point.
1.4. Trading in a sideways movement (flat)
Breakout strategies do not work in flat. But there is a rule that allows you to trade profitably in the corridor: if the price rises to the middle of the corridor, the market has strengthened and is more inclined to further growth. If the price falls below the middle, the market is weakened and is more prone to further fall.
We buy if the price rises above the 50% retracement - the middle of the last completed move. Sell \u200b\u200bif below. Used for short and medium term trading. The analysis is carried out on D1 or even W1. You can additionally use Fibonacci levels.
2. Forex indicator. When to enter a trade
Most traders, even ardent adherents technical analysis, they still use indicators to analyze the market situation. Some of them can act as almost ready-made trading systems, indicating the direction of market entry.
All used indicators can be divided into 2 categories:
- auxiliary - are not used directly for the conclusion of the transaction. For example, using Fractal, it is convenient to automate the construction of support / resistance lines;
- algorithms that give a clear signal to conclude a deal. The entry point indicators do not have to indicate on the chart the point at which the trader can enter into a trade, it is sufficient that there is a clear description of the conditions for entering the market.
Based on such algorithms, you can build a good trading systemMoreover, it is not necessary to look for exotic algorithms, standard MT4 indicators are enough. The main thing to remember is that each signal should be duplicated, and preferably more than once.
An indicator showing entry points can be a good assistant even for an experienced speculator, you just need to figure out how to choose them and how to work with them.
The first rule of choice sounds something like this - "a good switchman - an understandable switchman", i.e. indicator signals must be logically justified, and the algorithm itself is transparent and available for study.
The second criterion, which is no less important when choosing signal indicators, concerns the algorithm settings, i.e. they should be open for editing, or better yet, provide advanced functionality.
In principle, if you do not take into account some of the nuances characteristic of individual algorithms, then the two criteria considered are more than enough to select a reliable indicator showing entry and exit points (reverse signal). If at least one condition is not met (that is, either the formulas are not clear, or the parameters are closed), you should not spend a second studying the Expert Advisor.
It is worth noting that many indicators showing entry points are most often built on the basis of oscillators or at mathematical support / resistance levels (fibo, pivots, etc.), so it is recommended to combine the received signals with trend instruments.
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3. Summary of the search for inputs
To make a profit on Forex, it is not enough to decide on a sell or buy order, you need to open a trade deal at the right time. Profit from a trade depends on finding the correct entry points.
These are the places on the chart where opening deals is most expedient. They are determined using technical analysis. In this case, the trader decides which tools to use depending on his trading style, trading strategy and trading system.
There are many ways to find market entry points. Each of them is applied in accordance with a specific market situation.
It is from the points of entry into the transaction that it will bring profit or loss.
Due to lack of knowledge, many traders not only miss excellent opportunities to make money on the foreign exchange market, but they also lose in transactions, since they do not take into account the rules for working with volume according to the VSA indicator.
The volumes on the charts are sufficient important indicator and many experienced traders believe that VSA is even more important than price, and even more so than figures, levels and other technical or graphical indicators.
On the basis of VSA, you can make the most accurate entries to the market - at the moment when the leaders' forces change - bulls give way to bears or vice versa. VSA-based systems provide excellent understanding of market processes and, most importantly, excellent entry points into trades with guaranteed profits. Knowing just a few of the most reliable and probable VSA entry points can greatly improve your trading.
Features of trading on VSA
VSA trading strategies provide an excellent risk-to-potential ratio, which allows you to minimize losses and cover several losing ones with one winning trade. In this article, we will analyze 3 options for entry points for VSA, which are characterized by the best indicators of the ratio of risk to potential reward. This parameter characterizes how many times the possible profit is higher than the amount that is set to stop loss , i.e. risk. As a rule, in trades, you should expect a profit of at least 3 to 1 from the stop loss. In this case, one profitable trade will cover losses from three stops and the statistical advantage in such a trade (expectation) will always be positive.
Correct interpretation of volume indicators allows you to be head and shoulders above those traders who use only standard methods of analysis and forecasting in their work. In addition, the use of data on volume and support and resistance levels will make it possible to determine the strongest zones on the price chart, where a reversal or retest with a trend continuation is likely to occur. Thus, we will enter at the earliest and most reliable stages of the price movement.
Well, let's move on to the analysis of 3 entry points for the VSA system.
Entry point # 1 - Reversal from historical support and resistance levels
More often than not, history repeats itself, as stated by the main postulate of technical analysis. That is why, if earlier the price pushed off from a certain level and moved in a downward direction, then there is a high probability that the outcome will be repeated with the next approach.
Substantial help in current situation is the confirmation of the level by high volume. If the breakout attempt or the so-called test was accompanied by a high volume, it means that at this point the balance of power of buyers and sellers has changed and now the initiative is on another part of the market players. Let's consider an example to simulate the situation.
On the presented chart, the price was already repelling from the level indicated by the rectangle, and there was a strong downward movement from point 1. Accordingly, with a repeated approach, we expect a similar situation and, as we can see from the example, when trying to break through the candlestick closed below the level, and at the same time a strong volume came out, which confirms the theory - the bears absorbed the bulls' attempt to break out upward.
After the close of the candlestick confirming rebound from level , in our case, after the candlestick marked with the number 2, we enter the short position and set the stop loss several points above the candlestick with high volume. The potential in a trade must be at least 3 times the stop size and be at the nearest support level. In the example, the support level and the target in the trade are indicated by the lower rectangle.
Reverse scenario and risk management rules
Similar conditions and rules for trades that are executed in the opposite direction - Long from support levels. After the price has passed the distance equal to 1 stop loss, you can cover 50% of the position to minimize risks... Also, to protect the position, you can set a stop at breakeven, after the price passes a distance equal to two stop losses.
Entry point # 2 - Level breakout with high volume confirmation
The second entry point is based on a breakout formation. It is very important to correctly assess the strength of the expected support or resistance level. One of the most significant factors in this case is confirmation - several breakout attempts in the nearest history, which were accompanied by high volumes.
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After a breakout of the indicated level, the price, as a rule, returns for a test at minimum volumes, which confirms the strength of market players who have broken out and the lack of strength among those market participants who could bring the price back.
In the example presented, we see a level that was confirmed by several breakout attempts with a high volume (indicated by the number 1). After that, the price breaks the level with a very large volume indicator and consolidates above the indicated resistance level, which we now consider as support and expect a test with a minimum volume. At point 4, the price reaches support and, as we can see, there was practically no volume activity during the descent, which gives us an excellent signal to enter in the direction of the breakout (Long). After entering, set the Stop Loss a few points below the lower support level, and the Take Profit at the next nearest resistance level. At the same time, it is important to determine in advance that the Take Profit should be at least 3 to 1 in relation to the Stop Loss.
Do not forget about the conditions of the opposite scenario and the rules of risk management, which in this case are the same as at entry point # 1.
Entry point # 3 - Approach the PS level at high volumes
The last entry point for support and resistance levels filtered by VSA is based on placing stops of small players and false price movement for additional position gain by large players.
In the presented figure, the price at point 2 rushed up to the resistance level, while the entire stage of the movement was accompanied by large volumes. This means that large players deliberately raise the price to close in the footsteps of other market players and gain position from the best price - in this case, from a higher level.
We can use this pattern, and when there is an approach, as in this case, to the resistance level at high volumes, we can open a short position when the price stops and a small flat. At the same time, we set the stop loss slightly above the upper border of the resistance zone, and the Take Profit should be at least 3 stop loss distances.
The rule of partial closing and risk management are similar to those described in the example of entry point # 1.
Outcome
Knowing the simplest and most effective points of entry into a position, as well as understanding the goals and priorities of large players is the basis for making money on financial market... Three variants of the entry point for VSA, as well as a description of the methodology, will allow you to learn how to enter the market only in the most probable cases and to be guaranteed to take profit in most of the transactions. It is quite possible that at the initial stages everything will not work out very well, but a short training and testing period will bring the most significant effect to your trading.
The moment of entering the market is one of the determining factors of the profitability of the transaction - if it is chosen correctly, then the transaction is likely to bring profit. Otherwise, it will be almost impossible for a trader to avoid a loss, since the Take Profit and Stop Loss levels of the transaction will also be incorrectly determined. Let's figure out which entry points are the best in forex market.
Note that entry points are characterized not only by a price parameter, but also by a time one. For example, for trending strategies, unsuccessful moments for making deals are the end of the American session (after its completion, as a rule, there is a flat) and the Asian session (during which the market has low volatility). But for channel strategies, the European and American trading sessions are an unfortunate time to trade. It should be borne in mind that these recommendations apply to major currency pairs and some crosses. However, individual cross-currency pairs (excluding the euro and american dollar) on the contrary, they have increased volatility precisely during the Asian and Pacific sessions - NZD / JPY, AUD / JPY, AUD / NZD, etc.
The best forex entry points during a trend
Most traders trade with the trend. It is determined on one of the timeframes, and then a lower timeframe is opened, on which corrections (rollbacks) are identified. The moment of their completion is the most successful moment of entering the market in the direction of the global trend. Thus, buying at a local low or selling at a local high is ensured, which is the best entry to Forex when trading with a trend.
Reasoning in a similar way, you can determine the best times for opening counter-trend positions. Such strategies involve trading on pullbacks that inevitably accompany any trend. In this case, the trend is also determined on one of the timeframes, and then the level of the likely completion of the trend impulse is determined on the lower TF (as a rule, this level is resistance on an uptrend or support on a downtrend). The price reaching this level is the moment of the best entry in Forex for counter-trend trading strategies.
The best forex entry points during flat
Since during a flat the price moves almost horizontally and with a small amplitude of fluctuations, channel trading strategies are most common for such periods. Such a channel is defined by two horizontal levels - the upper and lower boundaries. In the interval between them, the price fluctuates. During a flat period, the price can alternately touch both borders several times, and it is these touches that are the best entry points for Forex trading in the channel.
Often such a channel forms above support (becomes the lower border of the channel) or below resistance (becomes the upper border of the channel). In this case, the price will reverse from this border with a high degree of probability.
News Release Times as the Best Forex Entry Point
The release of important economic information almost always leads to increased market volatility (the price can either move rapidly in one direction, or begin to oscillate with a large amplitude). This is very good time to generate significant profits in just one trade. It is only important to correctly predict the direction of the price impulse.
The best entry point for forex news trading can be determined in two ways:
- a few minutes before the news is published (if the trader is confident in the subsequent dynamics of the quote);
- some time after the publication of the news, when the market starts to react to it.
Indicating the best entry points in Forex by candlestick patterns
It is easy to understand that the best moment to make a trade is the price extremum:
- minimum - for buying;
- the maximum is for sale.
In this case, the minimum is formed when the downward price movement turns upwards, and the maximum is formed when the rising price turns downwards. Effective method the search for such reversals is candlestick analysis. Its idea is that certain market conditions are preceded by very specific candlestick combinations.
Thus, the formation of a reversal candlestick pattern on the price chart is also the best entry point to Forex.
Indicators for identifying the best forex entry points
The group of such technical analysis tools includes arrow indicators, the purpose of which is only one thing - indicating the most favorable moments for opening positions in one direction or another. Among these arrow indicators are:
It should be borne in mind that finding the best forex entry point is just one of the stages of any trading strategy. In addition, the trader needs to determine, at a minimum, the optimal levels for placing Stop Loss and Take Profit for each transaction.
Nowadays, there are a huge number of different trading strategies. There are so many of them that novice traders are lost among the entire assortment, although the most effective trading methods are based on simple rules. In this article, you will learn how to identify the best entry points to the market. This information will be useful for both beginners and experienced traders, as with its help you can improve your trading efficiency.
Trend trading strategies
Trend trading strategies are considered the most profitable among traders. This has its own truth, but working with a trend is not as easy as it might seem at first glance. From a psychological point of view, it is quite difficult to buy if the price has been growing for a long time, since after a long trend there is often an okay. For this reason, many traders prefer counter-trend trading strategieswhich are more risky techniques. Most often, they are the reason for the complete drain of capital.
What is the best strategy for entering the market? Experienced speculators recommend, after identification, to find its fulcrum. That is, in order to reduce the level of risks, it is recommended to first build a trend line, and then identify important support and resistance levels. Then you need to wait for the moment when the price rolls back from the main trend, reaching the level after which the price will be ready to return to its previous movement.
By opening trades along the trend and from support and resistance lines, you can achieve good profitability. This trading provides short stops and long profits.
Entering the market along the trend line
Many experienced traders enter the market the moment the price touches the trendline for the third time. I propose to consider specific example entering the market in the presence of an uptrend. First, a trend line is drawn, which, in the presence of a bullish trend, should be directed upwards.
In the next picture, you can see how, after a rollback, the price remained in a flat for some time. Then, local minimums began to form higher and higher.
It is recommended to build a trend line through local minimums. Draw a straight line through the first 2 lows, and as soon as the third touch occurs, we enter the market. This method is called "Enter after the third touch."
If you decide to use this method, then you need to remember that the price often makes a false puncture. In this regard, it is recommended to enter the market when the candlestick closes above the trend line. The trade is opened with a stop that is placed a few points below the low of the candle. The trade is opened with a 3: 1 take in relation to the stop. As soon as the price passes a certain distance in the direction favorable to the trader, the transaction can be transferred to a breakeven state. Then you can use a manual trailing stop.
If there is a downtrend in the market, orders are opened according to the same principle, but in a mirror image. The trend line is built on two descending highs, and the market is entered after the third bounce from the trend line.
Breakout trading
The price often rises or falls in a zigzag pattern. At the same time, if the trend is upward, then at first the bears will be active, trying to drag the price in their direction. Because of this, the price will roll back after growth, after which the uptrend may continue, or a downtrend may arise.
In this case, it is recommended to enter the market from the support levels on the Fibonacci grid. If buyers are leading the market, the price will not roll back below the 23 and 38% levels. A price rollback to the 38 level is an excellent option for entering the market.
Notice in the next picture the price rolled back to point 2, then the price continued to rise, then another rollback to point 3 appeared, and then the price rose again. At point 3 the price broke through the level 38.2 and at point 4 - the level 161.8.
Point 4 in our example is the mirror point for the third point. The same connection is between the first two points. In our example, at the level at which the fourth point is located, and it is recommended to enter the market. That is, after the next rollback, as soon as the price breaks this level, it is recommended to enter the market.
In a downtrend, a breakout appears when levels that were previously used as extremes are overcome. Often, before a sharp downward jump, the price tests the resistance. At the moment the price touches the resistance line, you can open sell deals. An important level can also be identified using the 38% level, but the 23.6% level should also be taken into account. The price reaching the level of 23.6 indicates the weakness of buyers, as well as the market's readiness to continue the downward movement.
The next picture shows an example of how to act when the price moves according to the rules described above. 
Entering to break the trend
It is very dangerous to trade against the trend when there is no good place to enter the market with a small stop and a large take. How to identify such a point to enter the market? This situation occurs when the price breaks the resistance line, as shown in the following picture.
After that you need to wait for the completion of the correction after the breakdown of the resistance line. If the lower correction point is above the resistance line, then the reversal has taken place and you can open a buy order. Immediately after that, the resistance line becomes a support line.
If you are in doubt about a trend reversal, you can additionally use Fibonacci levels.
Sell \u200b\u200bdeals are opened in a completely opposite situation. First, the price should break through the support line, and then roll back up a little and turn around without reaching the support line. In such a situation, you can safely open a sell order. 
Trading in a flat
Many traders do not like to trade while they are on the flat market. But this is not always correct, since during periods of sideways price movement, you can find good points to enter the market. The first way is to enter the market at the moment the price rebounds from the boundaries of the constructed channel. Trading in this way is a bit uncomfortable from a psychological point of view, since orders are opened against the trend.
The second method of trading during this period involves building a channel at the moment when the price hits the sideways. Next, you need to follow the median line, and if the price is higher - open buy deals, and if lower - to sell the currency.
That is, you need to create a price channel, middle and wait. As soon as the price breaks the middle line from top to bottom, it is recommended to sell, and as soon as from top to bottom - to buy. It is recommended to use this method of trading within a day or on a daily chart, deals are created for 2-3 days no more. The strategy can be supplemented with Fibonacci levels.
Now you know how to identify the best entry points to the market. I hope this article will help you in increasing your income from trading in the foreign exchange market. In order to keep abreast of all the most effective strategies, advisors, indicators and much more interesting, subscribe to my channel. I wish you all good luck and good profits!
Entry points to the Forex market. It is generally accepted that there are seven main entry points to the exchange market, which are both simple and effective. Based on the data obtained from these points, it becomes possible to neglect many ...
Which in many cases display incorrect data due to high variability and rapid development dynamics foreign exchange market Forex. Entry points to the market itself work not only in relation to the Forex market. They can be used in, stocks, precious metals and so on - the principle of operation of entry points in any situation remains unchanged. However, whatever your confidence in the correctness of your choice according to the data of market entry points, you should not forget about insurance, that is, about stop loss and.
Market entry points along the trend: the dilemma of risk and efficiency in Forex
As you know, entry points that are formed based on the results of trend analysis seem to be the simplest option for action. On the other hand, the trader risks a lot, because the entry takes place at a time when the trend has not yet fully formed and its fluctuations are possible. In many ways, fears can be explained by the psychological obstacle of traders in relation to this kind of risk: traders, as typical stock traders, rarely reconsider their views in relation to one or another trend.
Consider the possible market entry points to Forex:
Entry point number 1.
In this case, there is a buying trend from the uptrend line after its 3rd contact. It is logical that such a trend arises when prices rise, while it becomes possible to form a straight line that will rise up.
To draw this entry point, a straight line must be drawn through the places of the ascending bottoms, which have an absolute bottom (in relation to the two previous candles).
The peculiarity of this point is that it is necessary to determine in advance the price levels, which may differ significantly. This variation of the entry point depends on the time when the price touches the trend. It should be borne in mind that for maximum results it is worth using daily, each of which is assigned its own daily level. For more detailed entry points, you should choose hourly or thirty-minute timeframes.
Market entry point # 2.
It is logical, if we have analyzed the entry points to the exchange market from the uptrend, then the second entry point will be guided from the downtrend. However, the same triple touch pattern is used here. At this point of entry, we see a mirror image of the situation with the previous point. In this case, the entry line will be drawn with a downward slope. To select all the same peaks, it is necessary to select two points with the highest price value in relation to the two previous and two subsequent ones.
As in the previous case, for this entry point, it is better to use a daily chart with hourly or 30-minute timeframes.
Market breakout entry points: efficiency + profitability
The breakout trading strategy is different high level efficiency, and accordingly - profitability. Typically, many Forex traders associate these market entry points with stop orders. As you know, the latter are triggered at a time when there is a breakout in the trend market. As a result, excellent and profitable terms to take a position at the very beginning of effective market momentum.
Market entry point # 3.
To determine this point, it is necessary to differentiate the penultimate peak level and the very first Fibo levels of the last downward movement of the market, which ended. If you look closely, it is fashionable to notice that in an uptrend, prices move upward in a zigzag pattern. At the same time, during the first third of the trend movement, its final formation occurs.
A situation is possible when the fall in this position stops, after which there is a repeated upward movement of the Forex market. At the same time, at the entry point, it is clearly visible that this movement pushes the prices up. However, at the same time, an upturn is not always noted at the last stage of the movement and the trend may fall below. The entry point, which is capped at the thirty-eight percent decline level and the penultimate peak in the trend, is the third entry point to the market.
Entry point to the exchange market number 4.
Such an entry point is associated with trading relative to the resistance gap and initial Fibo levels.
As in the previous case, the market entry point is a mirror image of the third point and is intended to direct the trader to trade on the short side. At the same time, there is some degree of price adjustment (reversion). Very often in such situations, when a downtrend is formed, the market raises prices too high.
Sometimes - to the support level, and in rare situations - when the support line is broken. This is where the 4th entry point to the market itself is located. For a more detailed determination of the required position of the entry point, you can use the above-mentioned Fibo levels. For ease of use, you need to take those that have an indicator of 38%.
Market entry point # 5.
This point to the Forex market means a situation in which a trader buys from a counter-trend (he is downtrend in relation to another trend). This entry point is not always 100% effective and is used when the trend is moving from the bottom to the top. In this case, the closure is fixed in a place much higher.
If we briefly consider the events at the fifth point of entry into the market, then the price initially crosses the trend line, then it is fixed above it, and during the correction it goes down to the trend. At the same time, in the place where the resistance line used to be, a direct support appears. The effective point for acquiring an asset is located on this line.
Again, if you are not sure and want to test yourself, then you can use Fibo levels with the calculation of the correction depth. With its help, it is possible to determine not only the effectiveness of the entry, but also to carry out selection and discard false signals of changes in trend characteristics.
Market entry point # 6.
In this case, the trader starts to play with the counter-trend, which was previously an upward asset, and after its breakout, turned from a supporting to a resisting one. It is one of the most efficient and profitable exchange entry points for the relatively short side of the Forex market. In confirmation that you have chosen the correct entry point, you can use.
At the same time, if a trader's trend, which had an upward trend, has transformed into resistance, and corrective levels are located nearby, then options with an effective resolution of the situation are significantly multiplied. This, it turns out, is due to the fact that when choosing such an entry point, there is always an option to leave the occupied position without losing or draining the deposit. This situation in Forex arises partly due to the fact that the market is characterized by a certain duration of rotation around the breakout point, before a decision is made to move in one direction or another.
Entry points to the exchange market during sideways movement: justified risk or gamble?
Many traders consider sideways trading to be extremely dangerous. Moreover, many are sure that the game is not worth the candle, even with the opportunity to get a significant increase in the deposit. Many attempts to apply strategies based on breakout and breakout do not work.
In this case, a similar situation arises: after the trader has completed everything, the price continues to move for some time necessary for the trader direction, and then - changes it. When choosing an entry point in a sideways trend, a trend reversal often occurs and a trader loses a significant share of assets.
The fact is that not many can sell in the upper zone of an asset and buy in the lower part. In this case, the entry point runs into the same psychological obstacle - the tension is too great, because the trade is going against the current leading trend.
Nevertheless, there is a strategy that allows you to level out the risks to some extent. It operates not only in foreign currency, but also in the futures and stock markets.
The methodology is based on the fact that for any trading range and the trend rises above a certain level, the market is gaining strength and moving up. Moreover, any decrease in indicators below the specified level leads to its inevitable weakening. As a result, the entry point is located on the border between bear and bull markets and is relevant both for medium-term trading and for trading on short timeframes.
Entry point number 7.
As mentioned earlier, this is Forex trading based on the average range.
There are two rules that are typical for using an entry point directly into the market from the middle:
1. Buy should be when the market rises above fifty percent relative to the last completed market movement;
2. Sell should be done when the market drops below 50% of the last completed level.
As for the time frames and timeframes, such a strategy and such a market entry point are not very applicable to the realities of the Forex market in the long term. Ideally, use is reduced to implementation within 2-3 days. However, this does not apply to analyzes that take a long time. This entry strategy is not bad for trading within a session day or when holding a position for no more than three days.
Identifying the fifty percent line is simple with the last two completed market actions. As for further action, it is necessary to be guided by the situation, since there are no clear rules in this case.
Entry points to the Forex market
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