Tips for Entering the market (3)

When not sure 100% on trading signals
Tips for writing as on a previous entry can also be applied when we banked on trading signals, but it is in compliance with the criteria on our trading plans. To entry on such market conditions should not aggressive but conservative just to wait as the optimal entry. Conditions that often occurs is when the market is in consolidation or mutually wait between buyer and seller and the sentiment is not clear. But when you enter when sentiment (buy or sell) is so strong, it's likely you'll be late entry.

Here's an example entry on consolidated conditions with less convincing signals:

On the daily chart of GBP/JPY a few months ago, pin bar, formed a powerful trading signal not being among the inside bar, relatively long and the tail is not the dominant not jutting out. But the bias remains bullish sentimennya assuming the mother bar will tend to break toward the top. In addition to this overall trend on the daily chart still tend to be bullish.

Look at level 160.00 market trying to bring the price down (bearish engulfing formation), but going tug (Consolidation) with the formation of 3 inside the bar afterwards. Pin the bar the next day hinted at a likely consolidation of bullish sentiment, but because it is not the dominant us not sure 100% of the price will break above level 160.00. For a while the pin bar looks experienced rejection (rejection) by the lowest level of mother bars.

With our entry tips, buy position can be opened at level 50% retrace pin bar (50% retrace entry) with stop loss is roughly equal to the length of the pin bar. We see the movement further, if you use the normal way with the entry level in the closing pin bar and stop loss at the level of the lowest pin bar, our trading position will be completed at the point a.

Conversely, if we just entered at point B, i.e. after mother bar penetrated and consolidated ended (how careful and logical in fact) we will miss the market with the possibility of slippage given high volatility after the consolidation. Looks with a placement level entry and stop loss on such market conditions, profit obtained can be reached 4R.

Avoid entry at the time of the break key on the level

At the time of the break at key levels (a strong support or resistance), usually very strong market sentiment with high price volatility. Entry with ' ' the current ' opt ' in such market conditions will not optimal. Should we wait for retrace and entry point at the right time. Usually after the break with a strong retracement will occur.

In the NZD/JPY daily above A key resistance level is and B is a long-tailed bar pin signals (long tail pin bar) which is quite valid. Note After retrace to the point B, the price again bullish. Entry will be optimized at level 50% retrace pin bar (50% retrace entry).

Posted by Unknown on Tuesday, February 3, 2015 - Rating: 4.5

Title : Tips for Entering the market (3)
Description : When not sure 100% on trading signals Tips for writing as on a previous entry can also be applied when we banked on trading signals, but it...

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