M2FINANCIALS

TYPES OF MARKET ENTRY TECHNIQUES

Education
NYSE:JMIA   Jumia Technologies AG
When it comes to looking at entries on zones. There are two types of entries that you can use both of their own pros and cons.

  • Risk /Aggressive/ SET 'n' FORGET entry
  • Confirmation /Conservative entry


RISK/AGGRESIVE/SET 'N' FORGET ENTRY
the risk entry is aggressive in this case your are placing your buyer limit order on a zone, looking for price to tap into it take you into the trade and continue in your overall trade direction, but it doesn’t provide as much confirmation it does allow for an aggressive entry and provides quick entry when you  are not able to be on the screens or if confirmation is simply not available. you practically identify POI on the HTF and using the LTF to refine that POI, set a limit on the refined zone for your entry

An example would be using a H4 POI and filtering the point of interest down to a 15 minute setting a limit order on that 15 minute ZONE.

ADVANTAGE
  • it provides  trades that will can give a high risk reward.
  • is best used when the point of interest in the overall trade idea is with the prevailing trend
  • is also best used when approaching a trade aggressively
  • it also is useful when price is correctly moving back to an overall point of interest.

DISADVANTAGE
  • you get minimal Confirmation for entry, so the chance of being stopped increased Overall.  


CONFIRMATION /CONSERVATIVE ENTRY
confirmation entry provides a little bit more confirmation and little more conservative compared to the risk entry. Your entry poi is in the higher TF, you refined using the lower entry
You picked desired a point of interest, dropped down to a lower timeframe and wait for a break of structure in favor of that point of interest and enter off a newly created ZONE. 

ADVANTAGE
  • it provides additional confirmation prior to taking an entry
  • you are seeing a change of structure or change of trend in favor of the trade prior to actually taking the trade
  • it also provide a higher risk  reward as the point of interest is refined and execute using a LTF which allows u have a high risk reward.
  • is best used when the range between a higher time  frame poi and lower TF refinement is quite large.
  • Is also best use when price is rapidly moving back to a point of interest.
  • it’s best to use when there are multiple point of interest to consider that way your truly waiting for the market to show its hand prior to taking an entry


DISADVANTAGE
  • you may miss trades that simply do not touch the newly created ZONE on the Lower timeframe
  • you might not get a break of structure that forms another zone u can enter
  • the trade might just touch the POI and continue moving.
 

***
  1. POI: point of interest, where u plan to likely take the trade
  2. HTF: Higher Time Frame
  3. LTF: Lower Time Frame

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