Entry & Exit Rules
Define precise triggers for opening and closing trades
4 sections · 3 quiz questions · ~5 min read
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.
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.
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.
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?