ENTRY TYPES: All possible technical entries you can make in any stock

4 major types and 7 types in total

Jun 29, 2024

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"The first step in wisdom is to know the things themselves; this notion consists in having a true idea of the objects; objects are distinguished and known by classifying them methodically and giving them appropriate names. Therefore, classification and name-giving will be the foundation of our science." ~ Carolus Linnaeus, father of modern taxonomy

Today,

I am going to classify for you all possible, technically valid entries you can make in a stock:

The common thread underlying all these entry types below is “Low RISK”.

This Low risk is due to the “Tightness”.

Entries can be broadly classified as a “Breakout Entry” or a “Pullback” entry.

Another way to classify them would be as anticipation or confirmation.

So you can have 4 different kinds as follows:

Breakout Confirmed Entry: Entering only after the price has moved above a Range. Most breakout traders trade this way. Minervini’s VCP entries are a prime example of this.
Breakout Anticipation Entry. Entering inside the range/base anticipating that price to break out soon. I don’t know many famous traders around using this entry. Being in Afzal Lokhandwala’s telegram group, I do see him taking entries just before the main breakout in anticipation.
Pullback Confirmed entry (PBC): Pullbacks are essentially reversal entries. Entering only after the price has reversed the trend is a PBC entry.
Pullback Anticipation entry (PBA): Many traders enter right at the lows of the support zone in anticipation that the price will reverse from that zone. This is a PBA entry.
PBAs are lucrative for traders with big sizes as there is more liquidity at support/resistance zones.
This is also (in my opinion) a higher-skill entry as you need a good reading of supply-demand zones.

On a stock in a stage-2 Uptrend, there are these 7 possible entries. All of these are sub-types of the 4 major entry types discussed above:

The O’Neil Pivot (ONP) Breakout entry:
Entry when the price breaks out of the pivotal point of the base. William O’Neil strictly only entered here (with size) and rarely entered inside the base, hence I call this the ONP breakout entry.
Most of the time, the pivotal line of resistance is not the highest point of the base but slightly lower (tight areas called handles). But it will be at the top third of the base.
Some traders also call this entry “the one horizontal line” breakout entry.
The Minervini Cheat Pivot Breakout entry (Cheat):
You can still find a breakout inside the base. These are breakouts out of a tight range. Hence these entries are also breakouts (confirmed breakouts) but called “cheat” entries. Why? Because you are still entering to play the move out of the Base but cheating and entering before the actual base breakout.
If this cheat breakout occurred at the middle third of the base, it is called a Cheat Pivot Breakout entry.
The Minervini LOW Cheat Pivot Breakout entry (Low-Cheat):
If this cheat breakout occurred at the lower third of the base, it is called a Low-Cheat Pivot Breakout entry.
The Down Trend Line (DTL) Breakout entry:
The pivotal line of resistance is not always horizontal (or near horizontal like the ONP) but has a significant slope. 90% of these will be sloping down. A breakout of this downtrend line is a DTL breakout entry.
The Bullish on Bullish (BOB) Breakout Entry:
Rarely, when the stock is strong the base will have an upslope. The breakout of these ascending trendlines is a BOB breakout entry.
I have a detailed article on this. Please find it here (link). I have multiple examples as well.
The Pullback Anticipation entry (PBA):
Once the stock has broken out of the base, it can pull back to the breakout point or/and follow through to produce an up move (impulse move) and then pull back some points. Some pullbacks are more severe than others.
It is believed that prices find support at the Fibonacci levels with a higher probability than any other random level. I, however, find moving averages and super trend levels (multiples of ATRs) as more reliable pullback levels.
If one enters the moment the price reaches a strong support level, without the price bouncing back up, it is a PBA entry.
A confluence of supports makes it the more likely area of bounce. Read more (link)
The Pullback Confirmation entry (PBC):
If one waits for the price to reverse the downtrend (on a smaller timeframe) and enters after confirmation of the bounce, it is a PBA entry.
PBCs will give you a higher risk than PBAs.
While PBCs will give you a higher success rate.

Example: Voltamps

I tried to find an example which has the maximum of all possible entries.

DTL BO: Heromotocorp (yellow = 21ema; Green = Supertrend (10/3)

Why so particular about these entries?

Like, can we not just enter anywhere?

Sure we can.

This legit works. This is shown by the works of many traders from the school of hardcore Trend-Following (of which the turtle traders were the early pioneers).

And in a raging bull market, you will still make money. The market condition and the probability that comes with the bull market will eventually take your stocks higher. Even more higher if they are relatively strong stocks.

But, perfect entries help you to manage risk.

They provide you with an objective area to place your Stoploss.

That’s all.

Thank you for reading The Technical Take. Please share it if you find this valuable. Thanks

That’s all for today.

A quick reminder that,

I am speaking in a 1-hour session “All things Tightness” where I explain everything about tightness and how to find these tight stocks. Furthermore, how to choose a great tight setup from a good one.

Time and Date: 10 AM, Sunday. 30th June.

Please book your seat right now. The first 100 seats are FREE:

Classifying is an essential part of any system. What I showed you today is just how I have come to classify the different available entries. I do not use all of them. Only a handful of them are suited to my personality. I suck at PBAs while I love Cheats.

You may be different.

Hence trading is such a personal game, the same stock will work differently for different traders (I remember Nick Smidt from Traderlion sharing a story about how this stock which he loved to trade worked notoriously difficult for one of his mentors)

My trading changed for good when I stopped copying my mentors on Twitter (lol, tried trading like Manas and sucked big time) and built a system for myself that was suited to my personality, tendencies, and beliefs.

I teach >200 peak traders to do the same in Homma Private Access (HPA).

“Build your own personal trading system”

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