Three Entry Strategies for Retracements
We have identified the types of trade setups and the different time frames to trade our futures and foreign exchange markets. Now we need to talk about the techniques that we can use to enter into the trade.
■ The Goal
Our goal for this chapter is to define how to identify the three types of entries. The object of having an entry strategy is to develop a rule-based system that will allow the trader to enter into the market in a consistent way. Consistent rules produce consistent results. By the end of the chapter, you will know what to do with these opportunities and how to enter them.
Front Runs and First Targets
The front runs and first targets are different for every market. These are the normal front runs and first targets that work the best for their respective markets (see Figure 8.1).
■ The Three Entry Strategies
As you learned in the previous chapter, the daily time frames have entry opportunities on the 15-minute chart. The 15-minute time frame has entry opportunities on a micro chart. The trends that you can identify on the larger time frame have entry opportunities on the next smallest time frame down. There are three different entry strategies that you have the opportunity to use. These opportunities happen in the same order every time, for every measured move (MM).
The First Test
The first test, ...