Let’s talk about TIMING. When you’re a trader, knowing when to enter or exit a trade can mean the difference between a huge win or a huge loss. Every second counts, which is why it’s important to know what to watch: We use Momentum Oscillators and Indicator Confluence to time market entries and exits based on entry pattern rules and market structure.
In this article, we will focus on the 3 types of zone-based entries we use to trade.
#1 – Limit Entry
A LIMIT ENTRY is when you enter a trade at the Value Line in the Supply or Demand Zone. You can automate this trade as a pre-entry. While it has higher odds of getting filled than a zone or zone/confirmation entry, it also has a higher level of risk and less chance of reward.
#2 – Zone Entry
A ZONE ENTRY is when you enter into a Supply or Demand Zone as Price Trades Throughout the Zone. This type of entry has the lowest risk and most reward. Sometimes you are even able to set up for pre-entry and it has better odds of getting filled (compared to a zone/confirmation entry). However, this does have lower odds of getting filled than a limit entry and sometimes will require manual entry.
#3 – Zone/Confirmation Entry
A ZONE/CONFIRMATION ENTRY is when you enter at or near the Value Line as price leaves the Supply or Demand Zone. While the risk & reward level is similar to the limit entry, this type of entry is less likely to get stopped out. Which means, it will have confirmation of price action. There is a chance you may end up chasing the price and have lower odds of getting filled. This also requires manual entry.
By balancing risk & reward, you can figure out what type of entry point will work best for you. Your strategy and trader psychology play a large part in this decision. It’s important to know the pros and cons of each situation. This way, you can decide what works best for you.