Entering a trade in the spot market depends on strategy, analysis, and current market conditions. Here are some recommendations for the right entry timing:
1. Support and resistance levels
• Support: a zone where the price often stops and bounces upwards. This is a good point for buying.
• Resistance: a zone where the price often stops and reverses downwards. Here, it is better to avoid buying.
When to enter?
• Buying on a bounce from the support level with confirming signals.
• Breakout of resistance level followed by a retest (price tests the resistance that has become support).
2. Using technical indicators
• SMA/EMA (moving averages): Buy when the short average (e.g., 50 EMA) crosses the long one from below (golden cross).
• RSI (Relative Strength Index): Enter at RSI value < 30 (oversold) and rise above this zone.
• MACD: Buy when the MACD line crosses the signal line from below.
3. Trend entry
Following the trend is one of the reliable ways to enter:
• Uptrend: enter on corrections when the price temporarily declines but remains above key supports.
• Downtrend: better to refrain from buying until a reversal.
Advice: The trend is your friend, do not try to catch the 'bottom' in a falling market without clear signals.
4. Breakout of important levels
When the price breaks through strong resistance with volume, this is a signal to enter a buy.
Confirmation:
• Volume on the breakout is increasing.
• The price holds above the broken level.
5. News background and fundamental analysis
• Positive news (e.g., reports, partnerships, or regulatory decisions) can be a catalyst for growth.
• Enter if you see market reaction to the news (price and volume increase).
6. Signs of trend reversal
• Divergence: the price is falling while indicators (e.g., RSI or MACD) show growth.
• Candlestick patterns:
• 'Hammer' or 'Engulfing' at key support.
• 'Doji' indicates uncertainty and a possible reversal.
7. Timeframes
Choose timeframes depending on your strategy:
• Long-term investments: daily and weekly charts.
• Swing trading: 4H or daily charts.
• Day trading: 5M, 15M, or 1H charts.
8. Risk management before entry
Before entering:
1. Determine the stop-loss level (where you will exit if the price goes against you).
2. Calculate potential profit/risk (the ratio should be at least 2:1).
Examples of entry signals:
1. The price approached support + RSI shows oversold + candlestick pattern 'Hammer'.
2. Breakout of resistance with high volume + retest of the level.
3. Golden cross on EMA (50 crosses 200 from below).
When NOT to enter a trade:
1. At peaks after a strong rise without correction.
2. During important news with unpredictable reactions.
3. When the market does not show clear signals and is in a range (sideways movement).
Thus, entering a trade requires market analysis and confirming signals. Trade only according to your strategy and avoid emotional decisions.