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What is the best time to enter and exit a trend?

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  • First Post: May 23, 2008 9:54am May 23, 2008 9:54am
A simple question that has been asked before. So when do you think is the best time to enter a trend? When is the best time to exit a trend?

How do you determine when an opportune time to enter is going to occur? How do you determine when the right time to exit is going to occur?
The best time to enter a trend is at the bottom the best time to exit the trend is at the top.
Quoting zamakhtar
A simple question that has been asked before. So when do you think is the best time to enter a trend? When is the best time to exit a trend?
At the risk of sounding like a smartass, the best time to enter a trend is near the beginning. The best time to exit is near the end.

Quoting zamakhtar
How do you determine when an opportune time to enter is going to occur? How do you determine when the right time to exit is going to occur?
Aye, the $64,000 questions.
With regard to what is possible through analysis, what is a good time to enter when you know something is trending, and a good time to exit when you there is a strong probability the trend is over?

I am thinking that a good set up for entering a trend would be when the market has pulled back, and then started to go in the direction of the trend again. A good stop loss level would be below the low of the pullback. But I notice that there are times when this strategy can cause a lot of losses when the pullback is severe and has a lot of corrections.
Hi zamakhtar,

If I hear you correctly you are asking when is the best time to enter a trend while the currency is trending? I personaly would wait for the retracement area and would generally use fibonacci to locate this area. Then let your system tell you when to enter the trade.

Depending on your system a good time to exit might be when you get an entry signal for the opposing direction.

cheers
Go Getter When Trading Its All About "WHO YOU ARE BEING"
its so easy the best time is for enter in up trend is buy at the strong support

point and exit the strong resistance point
Locating a strong support is easy, but locating the strong resistance level seems to be more difficult. How do you go about doing that? Sometimes you run the risk of cutting your winners too short because you closed at a resistance level that was eventually broken through.

By cutting your winners too short, you are unable to then pay for your losses.
trends are formed on higher time frames so your guess is good us mine where to look for trends.so for entering the trend use lower time frames and put a reasonable stop
Easy question to answer as price can only go up or down therefore every trend must start with a reversal on a 1 minute chart, well actually a tick chart but spread makes that unrealistic to trade. When the 1 min goes from trending down to trending up its the start of the new trend, when it reverse again eg starts to trend down then the trend is over.....How long its going to trend one way or the other is totally unknown at time of entry of course but if you knew that you wouldn't be asking question like this would you, no nor would I.

Good thing is the risk is very small and the reward large, probably best to trade a volitile pair with a high adr.

Hope that helps good luck with your trading....
Feel the Fear and do it anyway!!!
I am comparing the prices and movement in morning session in US versus night time US. I guess what they call Asia Session the market looks slower. Is that the better time to trade?
Quoting zamakhtar
Locating a strong support is easy, but locating the strong resistance level seems to be more difficult. How do you go about doing that? Sometimes you run the risk of cutting your winners too short because you closed at a resistance level that was eventually broken through. By cutting your winners too short, you are unable to then pay for your losses.
Hi zam, I wrote about this exact issue here: Create Your Own Trading System: Stops and Profits Taking.

The short answer is:

You need rules to identify a trend. Using a moving average or simply looking at higher highers & higher lows or lower highs and lower lows is the simplest in my experience. As for when to enter, you'll have to decide for yourself. Look at the AUD/USD or the EUR/USD charts at the moment that have been trending strongly for a while now. Where would've good entries been in hindsight? Can you see similar setups again now?

The unfortunate reality is that we can never know when a trend will end. You move with price and take it for all it's worth but you can only take what the market is willing to give. We can't predict the future, we can only manage our positions when we're right and cut our losses when we're wrong.
Quoting TJPLD
The best time to enter a trend is at the bottom the best time to exit the trend is at the top.
How to find the bottom and the top?
My English is also not my native language,hope you can understand thx
Quoting zamakhtar
A simple question that has been asked before. So when do you think is the best time to enter a trend? When is the best time to exit a trend? How do you determine when an opportune time to enter is going to occur? How do you determine when the right time to exit is going to occur?
To enter and leave the market. I use three indicators. The first is Heiken Ashi, the second is a moving average set to 15 and the third is a RSI set to 10. When the market is going up the MA will be below the price, when the market is heading down the price is below. It doesn't take long to figure out when to enter and when to leave, as the three indicators make it clear. One word of advice, follow the trend and wait for clear signals. The nice thing about the Heiken Ashi is that it is not busy like your typical candles.
You have to gather all the basics of forex perfectly before investing your money into this risky and volatile platform.
In forex your entry or exit should be according to technical analysis and if you enter or exit the trade on the basis of support or resistence then there will no worry for you and you can use MACD because it gives good signals.
Quoting zamakhtar
A simple question that has been asked before. So when do you think is the best time to enter a trend? When is the best time to exit a trend? How do you determine when an opportune time to enter is going to occur? How do you determine when the right time to exit is going to occur?
The top and bottom if we had a magic ball.

Entering is when you see a reversal pattern and the shift in momentum and market structure, e.g. A lower high being broken to forma new Higher high. And to exit a trend I would use the same confirmation that got you in the trade. E.g. the cross of an EMA, or the break of a Trend line.
I would suggest you use a moving average and enter on every pullback and exit after a crossover
The best time to enter the trend is at the beginning of the trend. The best position to close the position is at the top of the trend. When the trend is adjusted horizontally, sometimes there will be no horizontal consolidation. At this time, there will generally be an engulfing candle pattern.
If you follow the trend, go long when the market is bullish and short when the market is bearish. If the price of a pair is continuously rising, then a trend reversal can be expected and it’s better to sell when the price is high, so that you don’t have to wait for the next uptrend and vice-versa.
Theoretically, the best time to enter a trend is in the very beginning of it, but it is hard to do.
That is why there are so many traders who trade counter trend, because they want to be just in the very start of it before it becomes clear that it is a new trend. However, you should bear in mind the fact that such a trading is pretty difficult to implement on practice. Surely, nobody can give you any guarantee that the trend will remain the trend even if you see some vivid convergence or divergence. This kind of trading requires huge experience and knowledge about the market. More than that, it also demands good management of your budget and hedging the risks.
Likewise, the best time to exit the trend is in the very end of it when it becomes substituted by the opposite trend.
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