Did you know that there are three important things that you should consider first before entering a trade?
The first one is the trade entry signal. This refers to anything that could point you in the right direction, be it a candle, a certain price, or a specific signal from your preferred technical indicator.
The second one is the duration that you’ll be holding your position. This one depends on which markets you’re trading. Let’s say you’re trading financial products on the Binomo platform. With financial products markets, trades that last more than 60 seconds are typically already enough.
The third and last consideration is your trade exit point. This refers to the point where you’ll finally exit your trade. It’s related to the second consideration since it also changes depending on the market you’re trading. When trading forex financial products, for instance, your exit point should be dictated by your take profit or stop loss.
Today, we’ll be discussing how to use these considerations in complete detail. Here’s a full guide to trading 15-minute positions using 5 trade entry signals on Binomo!
How long to hold position and exit points
In this example, we’ll be trading financial products and seeing how these considerations are used in a real scenario. More specifically, I’m trading the EUR/USD currency pair with 5-minute interval candles on the candlestick chart.
The first thing to do here is to determine how long each position will last. In my case, each position will last15 minutes, or 3 candle sessions in other words.
First trade entry point: strong support, 2 bullish pin bars, lows touching support
In our first example, you can see the support line that I drew touching the lows in a ranging market. Since it touches multiple lows, it can be considered strong support. Once the larger candles start developing, this means the market is starting to enter a trend. The signal I’m waiting for comes in the form of two bullish pin bars with lows touching the support. When this happens, I fully expect that the prices will start bouncing back up.
I’ll then enter a 15-minute buy position right at the close of the second bullish pin bar.
Second trade entry point: price breaks out from the support
The trend seemingly reverses into a downtrend, which starts from the bearish pin bar. However, don’t enter a trade just yet. In my as, I waited first for the prices to break the support. Once the bearish candles start getting bigger and breaking out of the support, it’s time to finally enter a trade. As a result, I enter a 15-minute sell position at this point.
Third trade entry point: RSI rises as hammer develops
The strong downtrend soon becomes exhausted and the markets start ranging again. At this point, a bullish candle starts to develop. Due to the nature of the market, however, it’s impossible to accurately predict the direction of the trend. If this happens to you, I suggest waiting for a more conclusive signal. For instance, when the hammer’s low touches the support line. This signals that the prices will go up – something you can confirm by checking if the RSI is rising. If the answer is in the affirmative, then it’s good to enter a 15-minute buy position where the price meets the support, like I did.
Fourth trade entry point: RSI rises as doji forms
As a general rule, it’s pretty difficult to trade doji candles because they signal indecision. That said, if you want to trade them effectively, you should look instead at the candles that form after they develop. For example, let’s say that there’s a doji forming at the support level. Immediately after it forms, a bullish candle starts developing. This means that the trend is likely to go up. Wait for another bullish candle to appear, or for the RSI to confirm that the trend is going up, before entering a 15-minute buy position.
Fifth trade entry point: solid bearish candle precedes a dragonfly doji
Sometimes, trends will temporarily rise or fall before ranging. During this indecisive time, you should take a look at the RSI. In the example below, the RSI is close to 80, which typically means it’s a good time to sell. However, you can see that there’s a dragonfly doji that is preceded by a solid bearish candle, which means that the bulls aren’t quite done with the markets yet. This is a sign that you should wait and see what candle develops after the doji. In my case, it was a bullish candle, which means the trend could be going up. In response, I entered a 15-minute buy position once the next bullish candle starts forming.
5 trade entry points: a summary
To summarize, here are the signals I used when determining by 5 trade entry points.
- First entry point: 2 bullish candles that had lows touching a strong support line, suggesting that prices are about to go up.
- Second entry point: prices breaking out of support, which means the trend may be going down.
- Third entry point: hammer candle develops, supported by a rising RSI. This means that prices may be going up.
- Fourth entry point: doji candle develops along the support line, accompanied by a rising RSI and two bullish candles forming. This suggests an uptrend.
- Fifth entry point: dragonfly doji develops after a bearish candle. A bullish candle soon develops, suggesting that prices will be going up.
Conclusion
It’s easy to determine the right trend entry points if you know all the proper signals. If you want to become a successful trader on Binomo, this is a really important skill to develop.
The best thing about this is that all you really need to develop this skill is the ability to draw the support and resistance lines and to use indicators like RSI. With practice, this should be quite easy even for complete beginners.
Are you interested in starting your successful trading career using these 5 trade entry signals? Don’t forget to sign up for a free Binomo demo account so that you can start practicing as soon as possible! Let us know the results in the comments below!
Good luck on your trading journey with Binomo!
Trade Entry, Trade Entry And Exit, Trade Entry And Exit Points, Trade Entry Checklist, Trade Entry Confirmation, Trade In Entry