Entries - chart entry

ENTRIES:

We're now onto when to specifically enter a trade.  This first part addresses when to enter in regards to specific stock price.

Please refer to the chart above.  You will notice that we have an uptrending stock.

The green circles show you the higher highs and the red circles show you the higher lows, so as you already learned the stock is uptrending.

Our specific entries are the candles with the blue boxes.  What we are looking for is a CLOSE of a stock ABOVE THE HIGH OF THE LOW DAY.  In order to know if a stock is going to close above the high of the low day, we must wait until the end of the trading day to do this.  Because if we enter earlier in the day, the stock price may just reverse and close low enough to be below the high of the low day and we would not have an entry.

I usually enter within the last 15 minutes of the trading day, around 3:45 p.m. Eastern Standard Time or later - as long as it's before 4:00 p.m.

Looking back at the chart above, I put a blue line across the high of the low day to help you see it.  You'll also notice that you'll get this entry usually within a few days of the higher low.

Here's another chart, but this time, we are looking at a downtrending stock.

This time you would enter when you get a close below the low of the high day.  Again, the entries are in the blue squares.  

So, those are the set ups for entries we are looking for when it comes to price.

Bullish Entry:  a close above the high of the low day

Bearish Entry: a close below the low of the high day