I read a few times that say you can flip a coin for your trade entry and money management takes care of the rest. Basically, take a random entry and you may still do alright. To my knowledge, nobody has ever put real money on the line with that trading “strategy”. I know it is not something I would do regardless of the anecdotal evidence.
Can we agree that a trigger is a good idea to have? I think it is and have realized through communications with many people that it is not something that people really grasp. They understand a concept such as support/resistance but get caught up in knowing how to get into the trade.
I want to give you a few triggers that you can utilize if they suit your trading style. I picked these up throughout the years starting back in my Fibonacci days. Some will use an indicator that you can find in the popular trading platforms. Others are simply price action that shows you the price is starting to head in your direction. It will not be an exaustive list and you can tweak these so you are comfortable with them.
To keep the examples related, I will use the same chart and interest area for all of them.
This entry is a simple trend line break to the upside.
Once price is near the area of interest, drawing a downtrend line on the close price action will give you a place where you can objectively enter the trade. You can set a stop order at a level on the other side of the trend line on the same time period OR drop down to a lower time frame and draw the trend line. The difference on this chart by dropping down gives you approx 8 pip earlier entry.
You can plot this on your chart and when a candle pulls back below it into your trading area and then pops above it with a close, you can trade a break of the high of that candle. The lower time frame gives you roughly the same price entry.
Once price is in your zone, you count 3 bars to the left and can either place a buy order above it or market in when price exceeds the high of the third bar. In this example, bar #1 was the initial entry consideration. However, the green bar with the X below it did not exceed it. So, we start the count again and finally get our entry when the bar with the arrow breaks the high. Again, dropping down gives you a slightly better entry.
When the CCI climbs back over the 0 level and the candle closes, you have your entry. As it happens most times, dropping down gives you a better entry and in this case, it is about 17 pips better.
Finally we will utilize the structure of an uptrend which is higher highs and lows.
Price has pulled back into your zone and when price breaks above the high that preceding your zone, you take a break above it. This method has a slightly worse price point but does add in that confirmation aspect that many seek. On the lower time frame, you are looking at a 6 point better entry price.
So there you have it! A few ways that you can trigger yourself into a trade. Using an indicator based trigger takes all subjectivity out of your hands. When using price action, there is a little subjectivity to it, an art some would say. You have to find a method that speaks to you. One main component they should have is that there is an indication the price is going to head in your direction.