Trigger for Entry

When to “fire!” is determined by the entering trigger.

When you're in the prospective trade area, your entry trigger notifies you when to enter the transaction in reality.

This is the method you'll use to get in.

Now that you've decided where you want to initiate a transaction, you need to find out how you're going to do it.

Do you just walk in blindly？ Do you just start walking across the street if you want to cross the street？

Only if you don't mind being run over. Of course, you double-check both directions to make sure it's “safe.”

Trading can benefit from the same method. You want to be certain that entering the market is “risk-free” (i.e. a high probability trade setup).

The entry strategy will keep you out of trades that aren't performing as expected in your probable trading location.

Assume your possible trade region is characterized by bearish divergence.

Do you just have a tendency to be short？ Or do you wait until the price reaches a strong resistance level？

Maybe even wait for a shooting star-like exhausted reversal candlestick to form？

Instead of waiting, you short now and watch the price soar higher until being stopped out.

Just because you've find out a promising trading region doesn't mean you should dive right in.

A strong confirmation is provided by a competent entrance approach, which helps you avoid losing trades.

Take another screenshot of your chart and label the location of your entry trigger.

Remember that a good entry trigger must be combined with a good potential trade area.

Although a moving average crossover is a common entry approach, if you don't consider the place you're thinking of entering, you'll almost certainly be whipsawed to death.

It's a recipe for disaster to use an entrance trigger as a “stand-alone” strategy.

Make sure you're also mindful of your “environment.” A knife should never be brought to a gunfight.