Trading Price 6: Entries Tactics Flashcards
Base 4 things
Don’t want to see huge wicks NRC can be either green or red can be 1 to several candles
5 types of entries
- Limit Entry 2. Zone Entry 3. Confirmation Entry 4. Scaling into a Supply/Demand zone 5. Set and forget
Limit Entry
Buy/Sell LIMIT ORDER placed when price reaches the proximal line, with a SELL/BUY STOP ORDER just below/above distal line
3 advantage of limit entry?
probability of meeting entry is the highest - don’t have any competition because you are buying from sellers. will get filled, won’t get slippage can set and forget
3 drawbacks of limit entry
Higher RISK than Zone entry Lower Reward than Zone Entry Greatest Unknown, increasing chance of stopping out - but you have to get over fear of getting stopped out and start trusting the zones should take #1 entry to get over fear.
zone Entry
- short/buy INSIDE of a SUPPLY/DEMAND ZONE - use when have WIDE zone - excellent for level on top of level because they are usually wide zones use STOP MARKET/MARKET to get into trade
2 zone entry rules for SHORT
- once price comes into SUPPLY zone, track CLOSED LOWS (wick or body) of candles with BLUE LINE BLUE LINE - IS TRIGGER (SELL STOP MARKET ORDER) 2. once price crosses the BLUE LINE, then you are in the market 3. if price goes beyond stop, then you don’t get into market
3 #2 Entry rules for LONG
- once price comes into DEMAND zone, track CLOSED HIGHS (wick or body) of candles with BLUE LINE BLUE LINE - IS TRIGGER 2. once price crosses the BLUE LINE, then you are in the market 3. if price goes beyond stop, then you don’t get into market
3 advantage of #2 zone entry
Risk is LOWEST of entry types - more precision based entry - don't have to get into trade if goes past STOP Reward is GREATEST of Entry types - more profit potential Probability of meeting entry is higher than Confirmation Entry
3 drawback of zone entry
Lower Probability of meeting entry - Non automated entry - harder for traders to learn
- Confirmation Entry
- wait till price comes into zone - get into trade as it goes out of zone on the proximal line. can use market or stop market to buy into market
3 advantage of Confirmation Entry
RISK is same as LIMIT ENTRY REWARD is same as LIMIT ENTRY Less chance of stopping out
3 drawbacks of comfirmation entry
Have most amount of competition - will get slippage with entry - may not get price you want - may not get all of shares filled LOWEST probability of meeting entry need to babysit
Stop limit vs Stop Market
Stop limit, there is no guarantee that you will get out Stop market, there is a guarantee that you will get out
3 when to use Scaling in
if have wide zone if have level on top of level if confidence is low, but want to still get in
3 strategies examples of Scaling in
If want to buy 1000 shares: 1. buy/short 250 at proximal 2. buy/short 250 at close before BASE 3.buy/short 250 at close of BASE 4.buy/short 250 at proximal line another strategy 3rd @ #1 entry 3rd @ #2 entry 3rd @ #3 entry another strategy 1/2 @ #1 or #2 entry 1/2 @ # 3 entry
What is advantage of Scaling in
if stopped out, then only lose half of what you were thinking about buying.
2 of when to use set it and forget it
time constraint psychological: struggling with being in trade, and not letting trade run/get out too soon
2 steps to set it and forget it
1 entry use BRACKET ORDER to set stops, and targets
what is important when using Set and Forget?
Need to use GTC, GOOD TILL CANCELED on ORDER STOP and TARGET have 90 days till expires or you cancel if you enter with a DAY order, then you will be in that trade without stop or target. So need to be in with GTC! Make GTC the default for all trades.
Fill in with buy, sell, short, cover next, note if each one is a entry, target, both
stop market vs Limit order
Limit order: will open trade at price or better. So even if you don’t want to open yet, if price is better, then will enter trade. Stop Market Order: will not open trade until price is met.
