Reasonable selection of highs and lows: An effective way to determine entry points

What troubles many traders is not the trend judgment itself, but the difficulty of accurately determining the position price after knowing the direction. First of all, it is necessary to understand that the so-called "highs" and "lows" are actually relative concepts, not absolute maximum values. Many novice investors always want to capture the perfect timing and pursue the best entry point. However, when trading with such a mentality, it is often difficult to close a deal - because no one can know the true top and bottom of the market in advance unless they look back. Therefore, in practice, you only need to choose a relatively reasonable point to enter the market, and finally achieve profitability to reach the goal. The method of determining your mileage may vary. Here are some common ways:

First of all, before confirming the entry point, it is necessary to clarify the direction of this transaction, that is, whether to go long or short.

Method 1: Look for areas of near-term key resistance or support.

When the direction is determined to be long upwards, you can look for the corresponding support level as an entry reference. If the price hits the support level and does not effectively fall below it, you can buy here; otherwise, focus on the next support area.

Method 2: Wait for the short-term MACD pattern to deviate.

The short-term divergence here usually refers to the MACD bottom divergence in the 5- or 15-minute candlestick chart. When planning to go long, you should pay close attention to the appearance of the short-term MACD bottom divergence during the price correction. Once a bottom divergence is formed, the corresponding position is a relative low, and buying near it can be regarded as an appropriate entry time.

Method 3: Near the tangent support or resistance level.

This method is suitable for the situation where the price breaks through the key tangent and steps back to test the tangent support or resistance. At this time, it is better to enter the market in the direction of the breakout, and a stop loss should be set on the other side of the tangent to prevent the risk of false breakouts.

I often use the above methods in trading. Of course, each trader has a different style and various methods. As long as it is helpful for trading, such as inPepperstoneThe flexible use of these strategies on the platform is recommended.