Trade Entry Areas-pinpoint the entry-level to place order
Determining the best entry areas
After the market presents a favorable trigger line configuration, it is time to focus on "where to enter" a high probability trade. Entering a trade at the correct area will give you the lowest risk and the greatest reward potential for each trade. This step will focus on defining the areas and how to pick the correct entry spot for a 5-1 chart trend trade.

Understanding Entry Areas

To define your entry area, look for the Fibonacci line, mid-band, or one-to-one "inside" of the 5-1 large triggers. This next section will walk you through the process of picking the 5-1 trend trade entry areas. You will define every 5-1 trend trade entry area with this technique.
You must first have a favorable 13-2 trigger line condition as discussed in the prior section. Then as the market is trending up, you will start defining the entry area on your 5-1 chart. REMEMBER: in real-time, you decide to buy a pullback while the market is going up. The following chart is the look at the moment in time you choose to buy the pullback.
click to enlarge- I am ready to do trend trades setup look
As the market starts to make a pullback, you will highlight-literally or mentally- the area between the large triggers on the 5-1 chart that "INCLUDES" Fibonacci, mid-bands, or one-to-ones.
click to enlarge- I am ready to do trend trades setup look -define your entry zone
Depending on the 5-1 chart condition at the high(divergence or no divergence), you will either place a limit order at this spot or wait for a confirmation from the T3 Market Flow indicator. You will learn more about this later in the next section labled entry techniques. In this example, there is no divergence -# on the high of the 5-1 chart, therefore, the entry is at the support and large triggers using a limit order. The market will look like this at the time of entry.
click to enlarge- I am ready to do trend trades setup look at the time of entry at support
After entry, you will move stops after the market resumes the trend by making up bars. Remember this look is extremely consistent when studying and executing 13-2 and 5-1 chart trend trades.
click to enlarge- I am ready to do trend trades setup look move stop and reach target
When the 13-2 chart small and large trigger line configuration is strongly trending, you will quickly recognize that the 5-1 large triggers plus Fibonacci and mid-band will pinpoint the entry area.
click to enlarge-when both Nexgen Dynamic Renko charts agree with trend trade entries on the 5-1 chart
The following picture is an example of a Trend Trade short at a Trend Trade Entry Area with 5-1 Large and Synthetic trigger lines favoring the trade.
click to enlarge-when both Nexgen Dynamic Renko charts agree with trend trade entries on the 5-1 chart

Studying historical trend trades to build confidence

To do this: Open your workspace in Ninja Trader. Make sure you maximize the 13-2 chart, then use drawing tools to annotate the 13-2 chart “wicks or tails” that happen while the large and small trigger lines are strongly trending. Your circles from the 13-2 chart will be superimposed automatically on the 5-1 chart.
Use the TechSmith capture tool (loaded during your install) or your screen capturing tool to build a library of trend trade examples in your trade tracking sheet Nexgen will provide to you. You will become comfortable recognizing the profitable trend trade looks. When you capture 10-15 pictures every day, you will quickly gain confidence in the proper trend trade recognition.
Below is a video example explaining how to visually back-test historical trend trade looks. It is recommended that you find at least 100 historical trend trades on several markets while you are on demo. There is no substitute for repetition. If your goal is to make real money faster, this is one of the most important study techniques. As a new user, you have the exact same tools as everyone who wins big with Nexgen, the only difference between you and them, is they have built trust in the expected outcomes that allow them to execute trades during the live market. With practice, you will reach that level of trust. This technique will also work well when you move from trend trades to studying termination conditions and HVA trades. You will simply put a circle or rectangle around each termination condition, then find the entries on the 8-range chart. If you have questions or need help, please ask in the morning or 101-afternoon classes or via email to your client advisor if you are not able to attend the live classes.
Watch in Full Screen - how to back test trend trades using Nexgen Software Services rules
Last modified 1mo ago