Trade Entry is Vital to Success
•Download as PPTX, PDF•
1 like•316 views
http://www.netpicks.com Save yourself a headache by using an objective trade entry. I will show you how to to enter a trade with the least amount of emotions possible by using a trading indicator or by using simply market structure.
Recommended
Recommended
More Related Content
More from NetpicksTrading
More from NetpicksTrading (20)
Recently uploaded
Recently uploaded (20)
Trade Entry is Vital to Success
- 5. Buy & Sell Pullbacks
- 6. 1. Price may exhibit a pattern that I can trade to get into the bigger move 2. If triggered, my stop has the potential to give me less risk and therefore, I could trade a bigger position size depending on how I calculate position sizing.
- 9. CCI Zero Line Cross
- 10. Down Trend Line Break
- 11. Good - Bad
- 12. 75 Pip Stop On CCI! Good thing there was a lower high to trade.
- 13. Trend Line Fail
- 15. Traded properly, moving averages are not too bad
- 16. www.netpicks.com Trade Entry Triggers Objective Keep Emotions Away Part of your trading plan
Editor's Notes
- 00:00:00 - (duration:00:00:07) - How you get into a trade can't be guesswork. You need a trigger for higher probability entries and I am going to give you some ideas.
- 00:00:07 - (duration:00:00:07) - Why a trigger? Emotions can play havoc with your trading account and when you see these kinds of moves like you see
- 00:00:14 - (duration:00:00:16) - here, some part of the majority of us just want to jump in the market suckered in by the big candles.The fear of missing a move can be a big motivating factor to have you dump commonsense, good trade practices and have you push the buttons to get in the move.
- 00:00:30 - (duration:00:00:10) - A trigger is simply a signal that shows that price is turning or has turned in the direction you intend to trade. I will touch on using market structure and an indicator method of getting on board the trade.
- 00:00:40 - (duration:00:00:08) - I trade retracements in a trend and therefore, I need a means to get into a trade and the majority of time, I use a lower time frame for entry because:
- 00:00:48 - (duration:00:00:14) - 1. Price may exhibit a pattern that I can trade to get into the bigger move2. If triggered, my stop has the potential to give me less risk and therefore, I could trade a bigger position size depending on how I calculate position sizing.
- 00:01:02 - (duration:00:00:08) - The chart below shows a setup that I started to watch in late August and the beginning of September price dropped right into the zone I had.
- 00:01:10 - (duration:00:00:19) - My 30 minute chart shows a lower swing high. If taken out, there is a higher high which indicates that down move may be over. Placing a buy stop at this level gives a 40 pip protective stop position. The red arrow shows a higher swing and I would have skipped the trade is I needed that one to break.
- 00:01:29 - (duration:00:00:27) - Same chart with a 14 CCI. Once the CCI crosses the 0 line that is a trigger to place a buy stop 2 pips above the high of the candle that coincides with the CCI cross.Here,the trade does not trigger and the buy stop is trailed to the next high which is signified by the upper arrow. This gives a 52 pip protective stop area.We also have a structure high violation price structure indicator trigger.
- 00:01:56 - (duration:00:00:08) - Trend lines. You could place a buy stop order a few pips above the trend line. In this case, the stop is approx. 30 pips.
- 00:02:04 - (duration:00:00:04) - Each of these triggers do have their good and bad aspects.
- 00:02:08 - (duration:00:00:07) - If the CCI did not have a lower high after the cross, the stop would have been 75 pips!
- 00:02:15 - (duration:00:00:11) - Trend lines, quite often after the breaks there is a retest of the line. At times, price can pull back almost 100% which for many traders would have them exiting the trade early.
- 00:02:26 - (duration:00:00:14) - Market structure in the form of highs and lows may be too far away Having to gear down to a much lower time frame and forcing a tighter stop, can have you poked out of trades before they get going. This is especially true in the Forex markets.
- 00:02:40 - (duration:00:00:06) - Moving averages are good as long as you use short enough averages so you are not too late to the party.
- 00:02:46 - (duration:00:00:10) - Triggers are an objective entry method and takes emotions out of the equation and further cements an objective trading style where your rules do what they are designed to do.