The Authority’ on Price Action Trading. In forex entry strategy, Nial won the Million Dollar Trader Competition. A better trade entry can significantly improve the risk reward potential of a trade as well as get you a better stop loss placement which can decrease your chances of getting stopped out of a big move in the market.
What are some things you can do to improve your trade entries? Today’s lesson will outline 4 tips for making better trade entries that can help you improve your trading results if you practice them consistently. Using limit orders to get better prices A limit order is a pending order that you place above or below the current market price, depending on which direction you’re trading. If you’re trading long, you place a limit buy entry below the current market price, then, IF price rotates down into your limit buy order, you will get filled long.
If you’re trading short, you place a limit sell entry above the current market price, then, IF price moves higher into your limit sell order. Limit orders give you the power to get into a trade at a price of your choosing. You have to be prepared to miss the trade, but as we discussed above, the advantages of a better risk reward profile on the trade and increased flexibility in stop loss placement are nothing to sneeze at. Set up trades at the end of each day Analyzing the markets and setting up trades at the New York close, is a very easy and effective way to improve you trade entries. Doing so, removes the noise and mental confusion that comes with trying to trade from intraday charts. So, just the very act of focusing on daily charts is going to significantly improve your trade entries.
I am mainly referring to those intra-day time frames under the 1 hour chart. Wait for confluence using the T. Let’s look at some examples of trades that had T. The chart example below shows us a clear T.
S scenario to enter the market from. TREND was clearly bullish, we had a clear key LEVEL through 1. 6660 area and then a clear pin bar buy SIGNAL formed in alignment with the trend and the level. The chart example below shows another clear example of using T. LEVEL and then a clear pin bar buy SIGNAL formed in-line with the uptrend and the level. Thus, we had a highly-confluent price action entry signal. The last chart example we are looking at shows a clear example of using the T.