6 Market Entry Strategies: Secrets to Transform Price Movements into Stable Profits

In the volatile financial market, finding the entry point is the key to optimizing profits. Whether you are a new trader or an experienced one, combining appropriate technical analysis tools will make you more confident in each trading decision. Below are 6 successful entry strategies that many traders apply:

1. Trendline: Feedback And Breakout Concept: Trend line is a basic tool in technical analysis, helping to determine the direction of prices. This strategy is based on 2 main situations: Reversal (Feedback): When the price touches the trend line and bounces up, it signals a potential reversal. Break (Breakout): When the price breaks through the trend line, it confirms a change in the current trend. How to apply: Identify trend lines: Draw lines connecting the lows (in an uptrend) or the highs (in a downtrend). Wait for a signal: If the price touches and bounces back from the trend line, it could be a buying opportunity (in an uptrend) or a selling opportunity (in a downtrend). Confirm with volume: When the price breaks the trend line accompanied by a volume spike, the signal's reliability is higher. Pro Tip: Combine with indicators such as MACD or RSI to filter out false signals and increase accuracy.
2. Support & Resistance Levels Concept: Support: Low prices, where supply and demand create strong purchasing power, cause prices to often bounce. Resistance: High price levels where selling pressure reaches significant levels make it difficult for prices to overcome. Application: Identify key levels: Based on the historical chart, identify the levels at which the price has reversed or dropped many times.Trading strategy:Buy (long): When the price touches the support level and shows signs of bouncing back.Sell (short): When the price touches the resistance level and shows signs of reversal. Pro Tip: Using candlestick patterns such as pin bars, engulfing to confirm the reversal levels at support/resistance zones.
3. Fibonacci Retracements Concept: The Fibonacci levels (38.2%, 50%, 61.8%) are natural support/resistance levels formed during the trend correction. Application method: Draw Fibonacci tool: Pull from the bottom to the peak in an uptrend (or vice versa in a downtrend). Wait for pullback: When the price adjusts and touches the Fibonacci levels, it could be an opportunity to enter a trade as the trend continues. Confirmation: Combine with trendlines or moving averages to increase the signal's reliability. Pro Tip: Find the convergence of Fibonacci levels with other support/resistance levels to make more accurate trading decisions (confluence).
4. Breakthrough from the Consolidation Phase Concept: When the price enters the consolidation phase (consolidation), the market is accumulating momentum for a strong breakthrough in the future. How to apply: Identify consolidation zone: Observe time periods in which the price fluctuates within a specific range, creating a "price box". Wait for a breakout: Wait for the price to break out of the consolidation zone - if it breaks upwards, enter a buy order; if it breaks downwards, enter a sell order. Confirm with volume: A breakout accompanied by a significant increase in volume usually confirms the strength of the new trend. Pro Tip: After the breakthrough, monitor the price's return to the 'touch' the breaking area to confirm the new support/resistance level before continuing trading.
5. Analysis Slot (Gaps): Runaway, Breakaway & Exhaustion Concept: Price gap is the empty space that appears on the chart due to the difference between the closing price of the previous session and the opening price of the next session. Breakaway Gap (Breakaway Gap ): Appears when the market transitions to a new trend.Runaway Gap (Runaway Gap ): Confirms the trend is strong and continuing.Exhaustion Gap (Exhaustion Gap ): Indicates the trend is weakening and likely to reverse. How to apply: Identify the type of gap: Observe the position and context of the gap on the chart. Trading strategy: For Breakaway Gap and Runaway Gap, trade in the direction of the gap. For Exhaustion Gap, be cautious and wait for reversal confirmation before entering the order. Pro Tip: Combine volume analysis to check the strength of a gap - a price gap accompanied by large volume often indicates a strong trading signal.
6. Volume Peak & Trend Concept: Volume Climax occurs when there is a sudden increase in trading volume, usually signaling an imminent strong price movement: either a reversal or continuation of the trend. Application: Volume analysis: Identify abnormal peaks in trading volume at support or resistance levels. Signal confirmation: If accompanied by RSI indicator showing overbought or oversold conditions, it can confirm the possibility of reversal. If the volume increases sharply along with the current trend, it is a sign of trend continuation. Pro Tip: Combine RSI with volume analysis to assess market saturation and make more accurate trading decisions. Action Advice & Risk Management Strategy combination: Do not rely entirely on a single indicator or strategy. Use a combination of 2-3 methods to create signal convergence (confluence), increasing the likelihood of success. Backtest: Regularly re-evaluate strategies on historical data to assess effectiveness and make timely adjustments. Risk management: Always set a reasonable stop loss level in each trade to protect capital. Determine the optimal risk/reward ratio before entering a position. Market context recognition: Identify whether the market is in a trend or (ranging) to choose a suitable strategy. Conclusion Finding the perfect entry point is not easy, but with 6 technical analysis strategies, you can improve your ability to identify trading opportunities effectively. From using trendlines, analyzing support/resistance levels, Fibonacci retracement, to recognizing breakouts, price gaps, and volume peaks - each strategy provides unique perspectives. Experiment, combine, and adjust to fit your trading style, while always focusing on risk management to protect your investment capital.