Entry Trigger

What’s an entry trigger?

An entry trigger is just a selected price pattern to enable you to time your entry.

A couple of common ones I would like to share with you might be called the hammer and the shooting star.

Example:

What is that this market structure?

You possibly can see this market is in an uptrend.

When a market is in an uptrend, we wish to be buying as much as possible at support.

Let’s discover our area of support on this chart.

These are the 2 most up-to-date swing points on the chart.

I will likely be on the lookout for buying opportunities in the world of support

Let’s see what happens next…

The market comes down

We’ve a hammer.

In case you remember, a hammer tells us that the buyers are temporarily on top of things as they’ve managed to push the value and shut near the highs of the day.

This can be a valid entry trigger to go long.

We go long on the subsequent candle open.

What about our stop loss?

Generally, once I set my stop loss, I wish to have it a distance below the world of support.

The ATR indicator might help us with that.

What about targets?

There are a lot of ways to go about setting your goal, but for simplicity’s sake, we are able to set our goal just before the recent swing high.

This will likely be a possible level to set your goal.

If you should assess this from a risk-to-reward standpoint, you employ this particular tool over here, click long position.

This implies you’re risking $1 to potentially make $1.14 for this particular trade, and simply to walk you thru this particular trade.

Let’s see…

Eventually, the market did hit our goal over here on this candle giving us a profit.

Conclusion

Support and resistance might be the very very first thing you learn in technical evaluation.

While some traders “outgrow” this idea…

It remains to be by far one of the vital powerful price motion concepts on the market.

Nonetheless, here’s what you’ve learned in today’s training…

• Support and resistance is far more relevant in a variety than in an uptrend
• Drawing your support and resistance as a box as an alternative of a line gives a whole picture of the world of value in your chart
• You should utilize candlestick reversal patterns as an efficient entry trigger when trading support & resistance
• Waiting for the value to achieve the world of value first lets you have monster risk-to-reward ratios

Over to you…

How do you plot your support and resistance?

Using a box, or using a line?

Also, what form of setups do you often take when using support and resistance?

Let me know within the comments below!