Entry and trade management in the Trade Zone
There are two different ways to enter a trade using the Zone Trade method:
- wait for confirmation
- entry right at the confluence level
If you would like to enter after a confirmation signal, you need to wait for the price to move back into the 'Zone' of the 8 and 20 EMAs and enter upon a candle rejection.
You can also enter when price hits the confluence of multiple technical levels inside the 'Zone'. These technical levels may include horizontal support and resistance levels or a trend line. When this confluence level is hit you may enter the market with a market order.
A simple trade management technique is to track swing highs and lows. Previous highs and lows make perfect targets, whereas newly formed swing highs and lows can be used to trail stops, when in a winning trade.