In this post, I am going to share with you what are the criteria you must have to constitute an entry for your trade.
This is one of the most significant problem faced by new traders and therefore I will like to use this post to share with you my way of doing it.
First of all, I need all of you guys to understand that you can never be profitable if you enter a trade based on the signal of one indicator alone.
What I am sharing with you below are what I myself are doing
1) You need to identify a level of strong support or resistance
One of the good entry point is when the price hits a major support or resistance level as the price will always tend to be repelled by these level. However we must never trade based on this point alone.
A major support or resistance level can be a Fibonacci level, pivot level, 200 EMA or a major swing high or low.
Therefore you must have the ability to identify the right level of strong support or resistance to increase your chance of winning.
2) You need to have a reversal candlestick
A reversal candlestick is a sign that the price is going to reverse and this is also a very good entry point for a trader.
You can keep a lookout of reversal candlestick like the railway track, spinning top or bottom as these are very good reversal pattern.
If you are able to see one of the above reversal candlestick on a major support or resistance level, this is definitely a very good entry point.
3) You need to be in the direction of the trend
If you are new to trading, I will advice you to always trade in the direction of the trend as this is the best way to get a good risk reward ratio in trading.
For me, I will only enter a trade when all the 3 criteria above are met. This will ensure that we have a higher probability of winning.
If you have an existing strategy on hand, you can add in the above 3 criteria into your strategy to make it more profitable.
For those of you who are interested to learn the exact strategies I am using to trade for myself and user of my trade copier service, you can take a look at the link below
Click Here For My Fx Course