Entering the market is not about randomly picking points, but rather waiting for the market to confirm the direction itself.

Common entry points generally fall into three categories:

First, a breakout followed by a pullback. The line that originally restrained the price is broken, and then a pullback stabilizes, which signals a trend reversal. The stop-loss can be set below the pullback low.

Second, a higher low or a healthy retracement. This indicates that the price is simply consolidating during the upward movement, with the bulls in control. These types of opportunities are the most comfortable, allowing for trend-based position increases, with low risk and high cost-effectiveness.

Third, the interchange of support and resistance. When the price breaks below support and the rebound is weak, support becomes resistance, which is the clearest entry logic for bears, with a very clear stop-loss position.

Ultimately, the market can be in one of three states: reversal, continuation, or failure.

Grasping these three categories is sufficient to cover most entry scenarios.