The phrase
"entry trigger" refers to something that prompts or initiates an action or event to start or begin. It is like a signal or a trigger that sets things in motion and allows entry into a particular situation or condition.
Full definition
This method consists of a handful of very specific price
action entry triggers that can provide you with a high - probability entry into the market.
If you can't use these price action patterns as
entry triggers in an already profitable trading system, combining them with the techniques below is the next best thing.
Also keep in mind that the hanging man can be a very high
probability entry trigger when combined with a good trading system.
Under the right circumstances, though, they can be very useful as early exit signals or
even entry triggers.
A price action pattern is my
main entry trigger and I will not typically trade if there is not a price pattern «confirming» a high - probability entry into the market.
It's OK to understand
various entry triggers and setups, but if you're trading against the dominant market bias, your probabilities of making money decrease dramatically.
This method consists of a handful of very specific price
action entry triggers that can provide you with a high - probability entry into the market.
For purposes of brevity and out of respect for my paid members, I won't give away all of my trading strategies and
entry triggers here, but you can learn more about the trading strategies that I teach in my trading course.
The dragonfly and gravestone dojis can also be used as
entry triggers on their own, although this is not typically done.
So, here's a very simple strategy for you; wait for a key level to break, then wait for price to retrace back to it and look for a price action
setup entry trigger to form near the breakout level in the direction of the initial breakout.
Now, a volume - fueled move below yesterday's low of $ 40.90 could provide a potential short
sale entry trigger for this ETF:
A rally above last Friday's high of $ 40.65 could provide a
long entry trigger for this ETF.
I personally do not take any bullish piercing candlestick patterns as
entry triggers without some kind of confirmation from my main trading system.
Often we see a trading range develop on the major pairs and following the simple laws of market rotation, we can trade reversal
bar entry triggers from the higher resistance and lower support points of the trading range.
A move above the two day high of $ 13.54 could provide a buy
entry trigger in this ETF.
As I mentioned earlier, I don't recommend doing this, unless the trade is supported by a profitable trading method that works wells with candlestick trading; however, if you do want to trade these dojis
as entry triggers, this is the way that I recommend doing it.
For purposes of brevity and out of respect for my paid members, I won't give away all of my trading strategies and
entry triggers here, but you can learn more about the trading strategies that I teach in my trading course.
So, here's a very simple strategy for you; wait for a key level to break, then wait for price to retrace back to it and look for a price action
setup entry trigger to form near the breakout level in the direction of the initial breakout.
We will see in a little bit how to combine price action with «confluence» in the market to find high - probability entries, but for now let's just focus on an individual price
action entry trigger.
Now, a move above yesterday's high of $ 23.44 would correlate to a breakout above its 50 - day MA, as well as its prior high, which could provide a buy
entry trigger for this ETF.
Our watchlist candidates, PPH and IAU, both closed at session highs and are now within striking distance of
their entry triggers.
A volume - fueled move above the two day high of $ 47.49 could provide a buy
entry trigger for this ETF:
Entry triggers and protective stops are one's protection from catastrophe if the trade doesn't move in one's favor.
Did Weiner's
entry trigger a case of disgraced - politician competitiveness?
In the example below, I used a bullish engulfing pattern as
my entry trigger.
If you're using price action signals as
your entry trigger, trading MACD divergence can help you qualify and time your entries.
I prefer to use price action signals like the hammer (with confirmation and pullback) or bullish engulfing pattern as
an entry trigger for this pattern.
That being said, the technique above is the correct way to trade this signal as
a entry trigger if you choose to.
Especially when combined with a good system for
entry triggers, this candlestick signal can be a powerful tool to have in your trading arsenal.
Notice that
the entry trigger is (1 pip) below the bearish confirmation candle — not the hanging man itself.
In the chart example below, we can see a good example of how to use an event area both with and without a price action signal as
the entry trigger.
I suggest you first learn to trade these second - chance entries at key levels and event areas with a price action signal as a «confirmation» /
entry trigger, then as you gain experience you can try the «blind» second - chance entry we discussed here today.
To trade the dragonfly doji as
an entry trigger, you would go through the same steps, except you would wait for a dragonfly doji to appear after a downtrend, and you would wait for a bullish confirming candlestick.
The image above is an example of how to take the gravestone doji as
an entry trigger.
The dragonfly doji could be considered slightly bearish if it had been followed by a bearish confirming candle, but you would never use this as
an entry trigger either way.
In such cases, the shooting star is used as
the entry trigger while divergence is the trade setup.
The point of trading is to try and make money over a series of trades by flawlessly executing your trading edge (your edge is essentially
your entry trigger or setup), but it's pretty hard to do that if you haven't yet mastered your trading edge.
That's because the Forex Smart Tools Trade Log is also a relational database, so you can sort your trades by any criteria, such as entry time, currency, strategy,
entry trigger, etc..
The entry trigger in the «pullback entry» could be a number of things.
In the image above,
the entry trigger was a dark cloud cover candlestick pattern.
Candlestick patterns will not work within this system, at least not as
entry triggers.
When trading this signal as
an entry trigger, you need to wait for a bullish confirming candlestick.
This candlestick formation is a weak reversal signal; therefore, it is not wise to take this candlestick signal, alone, as
an entry trigger.