Entry       

Frequently forgotten is that entering a trade should not be done automatically simply because a Setup(s) condition has been met. Presuming the above close above the 13 day moving average occurred on a Monday, would you automatically want to enter the trade Tuesday morning?

Suppose a stock looks  like this  at end of day when your setup occurs
But then on the entry day did looks like this, which is what AA did at the beginning of 2003.

What if it opened low enough that the price was back below the 13 day average? Should you wait until the stock is trading above yesterday's close? Above yesterday's High. What if the stock trades within a small range on Tuesday but then breaks out on Wednesday? Is it ok to still enter the trade on a Wednesday after the Setup on Monday and a sideways movement on Tuesday? TC-Companion allows you to test various factors on entry day and only enter the trade if the stock moved as you wanted. Following is an example of how you would tell TC-Companion to only enter the trade, once the stock trades above the prior day's high by at least 1/8th after Setup requirements had been met. This example also only allows Entry for one day immediately following the setup. So at this point with our hypothetical trade lets assume we've found a valid setup and a good entry price, now we have to determine when we will exit the trade.

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