Candleread
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Module D · Strategy & Execution·Lesson 2

Entry & Exit Rules

Define precise triggers for opening and closing trades

4 sections · 3 quiz questions · ~5 min read

Guided course path

Keep entry & exit rules inside the live track.

You are reading a reference lesson. The live course path gives you the lesson order, checks, saved progress, and next step. Execution makes more sense after the chart bias, key levels, and timeframe context are clear.

Closest track: Technical Analysis + Price ActionFirst lesson: The top-down framework
Start live lessonOpen live track map

Entry Triggers

An entry trigger is the specific signal that tells you to execute. Examples: bullish engulfing at support + trend line bounce, or break and retest of resistance-turned-support. Be precise — "price looks bullish" is not a trigger.
Wick points at a chalkboard showing an engulfing candle at support plus a trend line bounce, teaching that a real entry trigger is specific and clear.A real triggerEngulfing at support+ trend line bounce
Wick saysA trigger is a precise signal you can name, not "price looks bullish."

Confirmation Signals

Use multiple confirmations before entering: price at a key level (S/R) + candlestick pattern + indicator agreement + proper RR. The more confluences, the higher probability the trade. Aim for at least 2-3 reasons.
Wick climbs four steps for key level, candle pattern, indicator agreement and good risk to reward, showing how confirmations stack up before an entry.1Key level2Candlepattern3Indicatoragrees4Good RR
Wick saysStack two or three reasons, like a level, a candle and good RR, before you enter.

Take Profit Methods

Fixed RR targets (e.g., always 1:2), next S/R level, Fibonacci extensions, or partial profits (close 50% at 1:1, let the rest run). Partial profits secure gains while keeping upside potential. Know your exit before you enter.
Wick stands by a traffic light with red lit for big news or feeling tired, yellow for choppy markets, and green for a planned setup, teaching when not to trade.Big news or tiredChoppy marketPlan setup ready
Wick saysSkip big news, choppy markets and tired days. Quality beats quantity.

When NOT to Trade

Avoid trading during major news events (NFP, FOMC, rate decisions) unless that's your strategy. Skip choppy, ranging markets when your strategy needs trends. Don't trade when tired, emotional, or distracted. Quality over quantity.
Quick check

Did it stick?

Try to answer each one before you peek at the explanation.

1

What does "confluence" mean in trading?

2

It's best to trade during major news events like NFP for maximum volatility.

3

What is a "partial profit" strategy?