Trading Strategy

Finding Good Entries: Comprehensive Checklist

8 min read•Trading Reference Guide
7-Step Entry Checklist: Quality Scoring1TREND2LOCATION3MOMENTUM4PATTERN5R/R6VOLATILITY7CONFIRMSCORE45+ EXCELLENT35-45 GOODBelow 35 SKIP✓ ALL CHECKS PASS?→ Calculate position size→ Wait for candle close confirmation→ Set stop-loss and take-profit→ ENTER TRADE ✓💡 Quality Entry Criteria:✓ Trend is CLEAR (price + EMA + swings aligned)✓ Location is at CONFLUENCE (support + EMA + pattern)✓ Momentum CONFIRMS (RSI + divergence + volume)✓ Risk/Reward is FAVORABLE (1:2 minimum)✓ Entry is CONFIRMED (candle close, not wick)

The Complete Entry Checklist

A quality entry is not just about finding a trade - it's about verifying the trade meets multiple criteria before executing.

The 7 Steps

Step 1 - Trend: Is the trend clear? Price > EMA? Higher highs/lows?

Step 2 - Location: Is price at a confluence zone? Support, EMA, pattern?

Step 3 - Momentum: Does momentum confirm? RSI zone OK? Divergence present?

Step 4 - Pattern: Is there a chart pattern forming? Breakout or bounce setup?

Step 5 - Risk/Reward: Is ratio favorable? 1:2 minimum? SL calculated?

Step 6 - Volatility: Does ATR support the move? SL appropriately sized?

Step 7 - Confirmation: Final confirmation signal? Candle close (not wick)?

Entry Quality Score

✓ 45+ points = EXCELLENT entry (take it)

✓ 35-45 points = GOOD entry (take it with discipline)

⚠ 25-35 points = MARGINAL (skip, wait for better)

✗ < 25 points = POOR entry (skip)

Key Principle

You don't need EVERY step to be perfect. But you need MOST of them to align. When 5+ out of 7 steps confirm, that's your high-probability entry.

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