Forex Strategies – When Is The Best Time To Enter A Trade
If you do not have any forex strategies on when to enter a trade, you are not going to be very successful in this field. This is because your position will always be stopped out due to your late entry to a trade even though you are on the right direction. Therefore having some forex strategies that can help you to enter your trades at the best time can be very helpful to your trading.
Price will usually come back to retest a trend line before it moves in the desired direction and this must always be factored into your forex strategies. A trend line that is not tested is not considered a valid support or resistance. However, there are a lot of time where new traders enter their trade late and when the price started to come back to retest the trend line, they have to see their position being stopped out and then the price move in their predicted direction. (Sound Familiar Right)
Therefore a trader must know when is the right time to enter a trade so that they can get the most pips and avoid the chance of being stopped out by the price when it is actually retesting the trend line.
Here is the forex strategies that I use to enter a trade:
The best time to enter a trade is when the price breached a trend line but there are times when the price will breached a trend line and then retrace back behind the trend line again. This can cause a lot of traders to get stopped out and you should avoid this.
The best way to validate a trend line break is by using MACD, if you have a MACD cutting through its trigger line together with a trend line break, this is usually a valid trend line break and you must enter a trade immediately to grab the pips.
If there is a trend line break but there is no MACD cutting through its trigger line, it will most likely be a fake out and you should avoid entering a trade.
In the case when you have miss a chance to enter a trade, you must wait patiently for the price to come back to retest the trend line again. Once the price comes back to retest a trend line, you should enter a trade immediately. Never try to enter a position after the price move about 15 pips away from the trend line as it is very likely for it to be coming back to retest a line again.
This is the forex strategies that I used for entering a trade. Hope it is of use to you.
Other Related Posts: