How to Find Reliable Forex Entry Points with Price Action Confirmation

One of the most important factors for success in trading and becoming a professional trader is finding the right entry points for your positions. A proper entry point allows you to be profitable and enter the market at the right positions. In this article, we will learn some important tips that help us easily find suitable entry points with any strategy and improve our win rate. Even if you have a strong strategy and follow risk management and money management properly, if you fail to identify the right entry points and enter positions at the right time, your win rate will significantly decrease, and you won’t be able to achieve consistent profitability.

How to find the best entry point?

In this article, we will explore key price action techniques and tips to identify optimal entry points. Most of these signals should appear around critical support and resistance zones or significant price levels. Once these setups are confirmed, you can confidently initiate your position.

Change of Character (CHoCH) at Critical Support and Resistance Levels

This technique and tip is widely recognized as a price reversal strategy. When the price, within a significant zone and depending on the trend direction, breaks the previous high or low with strength and a Change of Character (CHoCH) occurs, traders can enter a position according to their strategy.
Refer to the example below for better understanding:

Photo by TradingView

Pin Bar Formation Featuring a Long Shadow

The formation of a pin bar at support and resistance zones can be considered a significant signal and confirmation for entering a position. To increase confidence in the entry, it is essential to have a strong candle form following the pin bar. We recommend using this trading tip in the direction of the trend to open positions with a high and reliable win rate.

In the example below, we have utilized the pin bar formation technique along with this trading tip in the direction of the trend. As you can see, in an uptrend, when the price touched the trendline, a clear pin bar formed, followed by a strong candle confirming the bullish momentum, after which we entered a long position.

Photo by TradingView

Please note that pin bars should form at key support and resistance levels or along trend lines, as these areas hold significant importance for our analysis. Similarly, doji candles also carry special significance like pin bars, and we can use them in the same manner. By utilizing these two methods, you can identify reliable entry points on the chart according to your strategy and increase your success rate.

We hope you enjoyed this article.