Set entry for your trade setup

Entry point is first important value you need to define before you really enter the trade. You have to know this level in advance !

When you need to set this price point for breakout type of trades , you are looking for values where you can already think that support or resistance is broken.

Good technique is to have predefined values for each stock price level.When price move after breakout or breakdown in your favor by these predefined distance then you are going to enter such trade. Here is example of such price values.

So trade setup rule for breakout (long) trades will be :

When price move xx above resistance I will enter trade.

Example of breakout trade setup:

The same rules you can use for pullback trades. In this case the level of support or resistance will be defined by up or down trend line or moving averages .

You can set your price for opening the trade by two techniques:

1. First is using same predefined values as above
2. Second is using last day candlestick or last two day candlesticks as point for comparison. When price moves above last one or last two candlesticks you will enter trade (long type of trade). Similar for short trades you will be waiting till time when price move below last one or last two candlesticks

Return from Setting of entry back to Stock trading system