stock primer

Entries and Exits

One of the biggest weaknesses of individual traders is their ignorance of entry and exit patterns. These patterns identify signals showing either strength or weakness. The entry patterns are signals of strength and the exit patterns show signals of weakness. These patterns can be inverted for shorts (i.e., making money when a stock or future goes down in price). For example, instead of entering a bullish trade on a weak down bar right above the bullish trend line, one could enter a short trade on a weak up bar just under the bearish trend line.

It is very important to look for trade entries and exits (or just to look at charts) near the end of the day's trade. This is because there is no way of knowing what the most-current bar will look like earlier in the day.

This is not an exhaustive list. There are other effective entry and exit patterns. Hopefully, this list will help you get started thinking about other patterns. Learn about the services we provde here.

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Entering on a weak down bar just above a bullish trend line

Entering on a weak down bar during a tight sideways move

Entering on two-day bullish turnaround near a low

Entering on a cup and handle pattern

Entering on a weak down bar over a mid point

Exiting on a bullish climax over a bullish trend channel

Exiting on a drop below the bullish trend channel

Exiting on a drop below a mid point


Historical Trading Results
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