How to determine the entry point?|Practical Skills

What troubles many investors is not how to judge the market trend, but not only at what price point to enter and build positions after determining the market trend and direction. Firstly, we need to clarify a concept of relative highs and lows, which are not the highest or lowest points. Many new investors are often committed to pursuing the best trading opportunities and finding the most perfect entry point. When you trade with such a mindset, you will find that you have no chance of trading because no one knows where the highest and lowest points of this trend are, unless you look back later. In this way, when doing trading, we only need to find a relatively suitable entry point, and ultimately achieve the goal of trading by making a profit.In fact, the methods for determining entry points vary from person to person. Below are several methods:


Before confirming the entry point, it is necessary to determine the direction of this operation, which is"buy"still"sell"。


Method 1: Wait for the short termMACDdeviation
The short-term deviation referred to here is generally5Minute or hour15minuteKIn the line graphMACDDeviation. When we want to buy upwards, we need to pay close attention to the short-term chart during its pullbackMACDWhen a bottom divergence is made, it should be the relative low point, and buying near this point is considered a suitable entry opportunity.


Method 2: Find important resistance or support zones in the near future
When we judge the direction well, such as buying upwards. At this point, we can search for the corresponding support level as the reference price for our entry point. If we reach this support exchange rate but fail to break through, we can buy here. Otherwise, we can look near the next support level.


Method three, near the tangent position
This situation is a test where the graph breaks out of the breakthrough pattern, and after the exchange rate breaks through, it probes back to the vicinity of the breakthrough tangent. At this point, performing a forward tangent breakthrough would be a good entry opportunity, while placing a stop loss on the other side of the tangent to avoid false breakouts in the exchange rate.


The above methods are commonly used by me, and of course, everyone has their own opinions. There are many forms of methods, and as long as they can help our transactions, they are all good methods worth promoting.

1Flag shaped consolidation and breaking scene:

The price directly breaks through the consolidation channel and tracks up:

The price has broken through the upper track of the channel and fallen back to the vicinity of the upper track of the channel:

The price broke through the channel and fell again, hitting a new low

2Breaking scenario on the ascending channel;

Price directly breaks through the channel and tracks up:

The price has broken through the upper track of the channel and fallen back to near the upper track of the channel

After the price broke through the channel track again and fell to a new low, it broke through the channel track again

3Horizontal breaking scene:

The price directly breaks through the consolidation channel and tracks up:

The price has broken through the upper track of the channel and fallen back to near the upper track of the channel

After the price broke through the channel track again and fell to a new low, it broke through the channel track again

Flag shaped consolidation breaking scene:

The price directly breaks through the consolidation channel and goes down the track

The price broke through the channel and rebounded to the vicinity of the channel's lower track

After the price broke through the channel and rebounded again to a new high, it broke through the channel again

Descending channel, breaking channel, and falling track scenario

The price directly breaks through the consolidation channel and goes down the track

The price broke through the channel and rebounded to the vicinity of the channel's lower track

After the price broke through the channel and rebounded again to a new high, it broke through the channel again

Scenario of breaking the channel under the horizontal plane

The price directly breaks through the consolidation channel and goes down the track

The price broke through the channel and rebounded to the vicinity of the channel's lower track

After the price broke through the channel and rebounded again to a new high, it broke through the channel again