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Lesson 2 - Types of Entries
Lesson 2 - Types of Entries
Lesson 2 - Types of Entries
OF
ENTRIES
The Three Types of Entries
Risk Entry Safe Entry Riskiest Entry
Confirmations
Confirmations are moves in the market that indicates to us that price is actually
moving in our direction. The more confirmations we have, the higher probability
it is that our analysis will play out.
There are various types of confirmations that are used by traders but we focus
on these major 2.
1. Structure Rejection
2. Trendline Break
Structure Rejection
Structure rejection is when price approaches
our structure level and shows rejection candles
and wicks.
Pros:
We can get in early and catch the move right from the start
We can have a small stoploss just above the structure and rejection
candles/wicks
Cons:
Price has NOT broken the trendline so there’s a chance that price may
bounce off the trendline and go higher.
Entry 2 - Safe Entry
Structure Rejection? YES
Trendline Break? YES
Safe entry because we have 2 confirmations. We can see price reject the
structure level and then price broke the trendline.
Pros:
We have 2 confirmations that price is moving in our direction.
Cons:
We won’t catch the move from the top
We will need a slightly bigger stoploss that is above the correction and
structure
Entry 3 - Riskiest Entry
Structure Rejection? NO
Trendline Break? YES
This is the riskiest entry as price didn’t go up to our structure level and
retest it. Sometimes price breaks down early due to high momentum.
Pros:
We can catch the move if it goes early
Cons:
The stoploss will be greater as we need to have it above the structure.
This is because price may create a complex correction that may retest
the structure later, even after the trendline break occurs.
GBPUSD
Stoploss: 25pips
Take Profit: 200pips
Entry 2 - Safe Entry Example
GBPUSD
Stoploss: 50pips
Take Profit: 200pips
Entry 3 - Riskiest Entry Example
CHFJPY
CHFJPY
Do NOT Rush
Wait for the market to make its move first. You can easily get caught out if you make
the first move.