The following was a reader email, enquiring as to how I would enter during a rather messy pullback:
I attached EUR/JPY 1 min chart.
I assumed that the trend is still bullish.
Within the blue area, where would you enter and where do you set your stop?
Could you give me an advice please?
The 3-min chart does confirm an uptrend.
Entry when faced with choppy price action (much overlapping candles) is best after a new group of traders get trapped against the direction of bias. (Spring or 3SR entry technique, for YTC PAT readers)
See the image below for explanation.
You may also consider not just entering via a stop-entry order, but in setting a limit order to work a lower price entry once achievement of the stop entry price. That is, when you would normally enter, place a limit order a few pips lower, with a high expectation of being filled due to the candle overlap. Of course, this risks missing the trade if it does take off. Or simply scale in (it’s not my preferred method but it can work well here).