JRFX Forex player
Active member
In foreign exchange trading, many investors often worry about not being able to grasp the correct entry time. Today, I will share three tricks to effectively find the best entry point and improve the success rate of trading.
- Have a good stop loss position after entering the market.
- The stop loss range is small but effective.
- The stop loss and profit space form an effective ratio.
- In short-term operations, more profits can be obtained in the shortest possible holding time.
After finding the entry point, use the method of entering the market in batches:
- Moderate support level: enter the market in batches near the support level, stop loss when it falls below the support level, and gradually increase positions when it rebounds
- Weak support level: wait and see
Build short positions at resistance level, the same principle as support level
- Weak resistance level, in a trending market:
- Closing 10% when approaching resistance level
- Closing 30% near resistance level
- Stop loss set below resistance level, closing 60% when price falls back
- After breaking through resistance level, wait for an opportunity to cover the previously closed 40%
- Strong resistance level, in a range market:
- Closing 30% when approaching resistance level
- Closing 40% when reaching resistance level
- Stop loss set below resistance level, closing 30% when price falls back
Closing short orders at support level, same principle as resistance level
Build long positions at resistance levels. When the exchange rate rises to the vicinity of the key resistance level, plan to build long positions when the resistance level is broken:
- High probability of breaking through, enter in batches:
- 20% of funds enter before breaking through
- 20% of funds enter after breaking through a certain range
- 30% of funds enter when the pullback is confirmed after breaking through
- 30% of funds pyramid during the rise
- Low probability of breaking through, enter conservatively:
- 30% of funds enter after breaking through a certain range
- 40% of funds enter when the pullback is confirmed after breaking through
- 30% of funds pyramid during the rise
Build short positions at support levels, same principle as above.
Trading strategy signal sharing community: https://t.me/jrfxasia2024
Newbie welfare collection: https://www.jrfx.com/2024/april/en/?396
1. Conditions required for an excellent entry point
- Confirm the continuity of the trend price.- Have a good stop loss position after entering the market.
- The stop loss range is small but effective.
- The stop loss and profit space form an effective ratio.
- In short-term operations, more profits can be obtained in the shortest possible holding time.
2. Methods for finding entry points
2.1 Find important resistance or support bands
In an upward trend, you can find the corresponding support level as a reference for entry based on technical analysis; in a downward trend, find the resistance level.2.2 Near the tangent position
After the graph breaks out of the breakthrough pattern, when the price returns to the vicinity of the breakthrough tangent for testing, it is a good time to enter the market. At the same time, put a stop loss on the other side of the tangent to prevent false breakthroughs.2.3 Wait for short-term MACD divergence
In the 5-minute or 15-minute candlestick chart, observe the MACD divergence. When the bottom divergence occurs, the relative low point is a more appropriate entry point.2.4 Moving average direction
Use the moving average to determine the market volatility trend. If the 20 or 50 moving average is consistent with the trading signal direction, you should enter the market decisively.2.5 Relative Strength Index (RSI)
When a short signal appears, if the RSI is lower than 70, give up the opportunity; when a long signal appears, if the RSI is higher than 30, the signal should also be given up.2.6 Trading volume
When the trading volume is large, the sharp fluctuation of the exchange rate indicates that there are driving factors in the market, which may be a buying opportunity; when the trading volume is small, stay on the sidelines.3. Good entry method
After finding the entry point, use the method of entering the market in batches:
3.1 Order at the position
Build long positions at the support level
- Strong support level: enter the market in advance- Moderate support level: enter the market in batches near the support level, stop loss when it falls below the support level, and gradually increase positions when it rebounds
- Weak support level: wait and see
Build short positions at resistance level, the same principle as support level
Closing long orders at resistance level
- Weak resistance level, in a trending market:
- Closing 10% when approaching resistance level
- Closing 30% near resistance level
- Stop loss set below resistance level, closing 60% when price falls back
- After breaking through resistance level, wait for an opportunity to cover the previously closed 40%
- Strong resistance level, in a range market:
- Closing 30% when approaching resistance level
- Closing 40% when reaching resistance level
- Stop loss set below resistance level, closing 30% when price falls back
Closing short orders at support level, same principle as resistance level
3.2 Breakout orders
Build long positions at resistance levels. When the exchange rate rises to the vicinity of the key resistance level, plan to build long positions when the resistance level is broken:
- High probability of breaking through, enter in batches:
- 20% of funds enter before breaking through
- 20% of funds enter after breaking through a certain range
- 30% of funds enter when the pullback is confirmed after breaking through
- 30% of funds pyramid during the rise
- Low probability of breaking through, enter conservatively:
- 30% of funds enter after breaking through a certain range
- 40% of funds enter when the pullback is confirmed after breaking through
- 30% of funds pyramid during the rise
Build short positions at support levels, same principle as above.
Trading strategy signal sharing community: https://t.me/jrfxasia2024
Newbie welfare collection: https://www.jrfx.com/2024/april/en/?396
