Saturday, September 23, 2017

My Forex Entry Strategy

November 18, 2011 by  
Filed under Forex FAQ & Latest Post


In today forex faq, we will be discussing on how to get into a position.

Below is the question from one of our fellow trader

WHAT IS THE BEST WAY TO SCALE INTO A POSITION…WE HEAR SO MUCH ABOUT SCALING OUT YET FEW ABOUT SCALING IN…

The reason why you heard so much about scaling out of trade and not into a trade is because the way you get into a trade depends on your trading style and strategy.

However there are several ways that I can share with you regarding scaling into a trade.

1) Trend Line Break – The trend line break is one of the most commonly used way of getting into a trade. However the problem face by most traders with this method is the occurrence of fakeout.

If you are able to tell whether the trend line break is valid or not, you will be able to distinguish between a real breakout and a fakeout.

Valid trend line break

Typical Fakeout

2) Major Support and Resistance Break – Whenever the price breach a major support or resistance, it will usually continue to move in its direction. Therefore using the major support and resistance for entry is also possible.

Breaking Major Support

3) Divergence of Indicator – If you have read my post on forex macd divergence, you will know that divergence on indicators can be a great way to enter a trade.

MACD Divergence

As divergence is an early sign of incoming movement, it is a great place to enter a trade to take more profit.

The above are some ways you can scale into a trade but the whole thing has to go in hand with the strategy you are trading so that you can be profitable.

If you have anything to share regarding this area, do feel free to give your comment below as it will be very valuable to this community.

Comments

9 Responses to “My Forex Entry Strategy”
  1. Alx says:

    Hi Kelvin.
    First of all, one of the top 10 world best forex related pages on the web (congratulations).
    I would like to read your biography (couldnt find it on the web)
    Could you send it to me?
    Regards

  2. tarun singh says:

    Hi
    Kelvin,

    According to you,
    In same day how many currency pair we can trade? with your trading strategy.

    • Kelvin says:

      Hi Tarun

      I personally trade the EURUSD and GBPJPY. I prefer to specialize in what I trade and therefore did not try all currencies.

  3. Bagi says:

    Hi Kelvin. OK and thank you for your advice. there had been only about a entry position. when i make to entry position then how will i get out exit from my position. how do i find that my exit point. Please to write about it. Thank u so much =)

  4. tarun singh says:

    Hi,
    Kalvin

    I have a query that, i want to buy your book to make me strong and proffessional in forex trading.
    Tell me from the two of them,which book i should buy first—- trend line strategy or mastering the skill to successful chart analy..

    • Kelvin says:

      Hi Tarun

      In fact, both the books are of different nature. The forex trend line strategy book is one that will teach you a working strategy that I am using. As for the Master the skill to successful chart analysis book, it will show you how I do my chart analysis everyday so that you can duplicate my exact system.
      Therefore there is no order of which one should you go first.

  5. Nompumelelo says:

    Thank you kelvin. Im usually a victim of false breakouts, now I can clearly see mt mistakes. what setting do you use for your MacD?

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