Set entry for your trade setup

The Entry point is the 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 a breakout type of trade, you’re looking for values where you already think that support or resistance is broken.

A good technique is to have predefined values for each stock price level. When a price movement after a breakout or breakdown is in your favor by these predefined ranges, then you’re going to enter this trade. Here’s an example of these price values.

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

When the price moves xx above resistance, I will enter a trade.

Example of a breakout trade setup:

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

1. Using the same predefined values as above
2. Using the last day’s candlestick or last two days’ candlesticks as points for comparison. When the price moves above the last one or last two candlesticks, enter a trade (a long-type trade). It’s similar for short trades, waiting until the price movement is below the last one or last two candlesticks.

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