Best market entry points
To make a profit on Forex, you need to not only choose the right direction for a trade, but also enter the market at the right time, or, in other words, find entry points.
This determines how much profit you will get from one trade, whether you will be able to take the entire trend or only a small part of it.
Entry points into the stock market are the most favorable places where a transaction will be opened; they can have not only price but also time parameters.
There are several effective ways to find entry points into the market, each of which should be applied depending on the current situation, making decisions based on market analysis.
It is important to remember that it is better to wait and earn more than to rush and lose profits.
We find successful entry points into the Forex market.
1. The simplest option is to analyze the trend movement on shorter timeframes. First, you determine which direction the price is moving, and then analyze the shorter timeframes. It's best to enter when the trend on the shorter timeframe has completed its pullback and started moving in the desired direction.
Based on this tactic, a well-known three-screen strategy is built, using three charts: junior, current and senior.
In an uptrend, this will be the minimum value; in a downtrend, it will be the maximum value. This will give you the opportunity to quickly close the trade without risk, taking a profit.
The principle of building the Three Screens strategy - http://time-forex.com/strategy/strategiya-tri-ekrana-eldera
2. Using price channels – price movement always occurs along a curve; if the range of fluctuations is wide enough, so-called price channels are formed.
The most favorable entry points will be near support and resistance lines. Depending on your trade direction, buy near the support line and sell near the resistance line.
You can also work on a breakout, in which case the entry point will be a breakout of the channel in the direction opposite to the main trend movement.
You can build a channel manually, based on minimum and maximum values, or using special channel indicators.
For more information, read Trading in the Channel - http://time-forex.com/strategy/torgovly-v-kanale
3. Based on news – to effectively enter the market using this strategy, you'll need to use a well-tuned news feed. This will allow you to immediately determine how the price will react to a particular global event.
As soon as you notice a trend actively responding to a news release, immediately open a trade in its direction. It's worth noting that the difficulty of using this method is that the price doesn't always react appropriately to various news items, and it's impossible to reliably predict market behavior.
4. Trend reversal points are also among the most favorable market entry points, as they mark the beginning of a new trend that can yield significant profits. Reversals can be identified visually by observing price behavior, using reversal indicators, or using fundamental analysis to identify the underlying cause of the price reversal.
In the first case, you need to calculate how many points the price usually rolls back, and if it increases significantly, open a trade in the direction of the rollback.
In the second case, we simply install the indicator and wait for a reversal signal.
5. Entry point indicators - there are also automatic entry point search options; they automatically analyze charts, indicate trade opening locations using dots or arrows, and sometimes send messages to the trader's email.
You can download this indicator here: http://time-forex.com/indikators/indik-vhoda-v-rynok
These are far from all the successful entry points into the Forex market. Each trader discovers their own patterns in the process, so you can always add to the existing list.
