Every trader will have to develop their own unique style of how they select their buy-in point. Scalpers, for example, may employ candlestick patterns to give them a possible buy-in point . Day traders will use indicators that cater to the higher timelines. Trend traders may use the moving average crossover.
corect entry point for trend traders
For trend trading, check the buy-in points. In the chart below, you can clearly see the trend channel and the buy-in points. With a bull trend, you buy from the bottom trend line and take profit at the top of the trend channel. Once you place your trade, a stop loss is set just below the bottom trend channel line. This stop loss will protect your capital should the market move against you.
In a bear trend or selling trend, the opposite applies: you trade from the top of the trend channel down to the bottom again. It’s essential you set your stop loss just above the top trend line.
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correct entry strategy using moving averages
If you find the above too complicated, you can use a simple line-crossing strategy based on two moving averages, as shown below. This works for me, and I have used it for the last 6 years with great success. Try it on a demo account and see for yourself how effective it is
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brake out stratergy
It makes sense to wait and watch the market’s movement when it is sideways. Since a new trend has just started, you can place your trade as soon as the market exits the sideways channel. It can be profitable to use this tactic in conjunction with other indicators and tactics.
