Finding a great setup is only half the battle. Knowing exactly when to enter is what separates profitable swing traders from those who struggle. Poor entry timing can turn a winning setup into a losing trade. In this guide, you will learn the entry techniques that professional swing traders use to get the best possible entries.
Why Entry Timing Matters
Even the best setup can fail if you enter at the wrong time:
Entry timing affects everything: A better entry means a smaller stop loss, bigger position size, better risk/reward ratio, and less time underwater in the trade.
- Tighter stops: Good entries let you use closer stop losses
- Larger positions: Smaller stop distance means you can size up
- Better psychology: Immediate profit builds confidence
- Higher win rate: Precise entries improve your odds of success
The Two Main Entry Styles
Swing traders typically use one of two entry approaches:
Breakout Entries
Enter when price breaks above a key resistance level. This confirms that buyers have overwhelmed sellers and the stock is ready to move higher.
- Best for: Bull flags, consolidation breakouts, cup and handle patterns
- Pros: Clear confirmation, momentum in your favor
- Cons: May miss some of the move, risk of false breakouts
Pullback Entries
Enter during a retracement in an uptrend, before price resumes its move. This anticipates the continuation rather than waiting for confirmation.
- Best for: Trend-following strategies, moving average bounces
- Pros: Better entry price, larger potential reward
- Cons: May catch a falling knife if trend changes
Breakout Entry Techniques
Technique 1: Close Above Resistance
Wait for the stock to close above the resistance level rather than entering on an intraday break.
- Identify clear resistance level
- Wait for the daily close above resistance
- Enter at the next day's open or on a small pullback
- Stop loss below the breakout candle or resistance level
Close Above Resistance Example
Stock has resistance at $50. It breaks above $50 intraday but you wait.
- Day closes at $50.75 above resistance
- Next day opens at $51.00
- Enter at $51.00 or wait for a pullback to $50.50
- Stop loss: $49.50 (below resistance)
This avoids false breakouts that fail by the close.
Technique 2: Volume Confirmation
Only enter breakouts that occur with significantly above-average volume.
- Breakout volume should be at least 50% above the 50-day average
- Higher volume = more institutional participation
- Low-volume breakouts often fail
Technique 3: Buy the Breakout Retest
After a breakout, price often pulls back to test the former resistance as new support.
- Watch for the initial breakout
- Wait for price to pull back to the breakout level
- Enter when price bounces off the retest
- This gives you a better entry and confirms the breakout is real
Pullback Entry Techniques
Technique 1: Moving Average Bounce
Enter when price touches a key moving average and shows signs of bouncing.
- Confirm the stock is in an uptrend (making higher highs and lows)
- Wait for price to pull back to the 10-day, 20-day, or 50-day MA
- Enter when you see a bullish reversal candle (hammer, engulfing, etc.)
- Stop loss below the moving average or recent swing low
Pro tip: The 20-day moving average is the sweet spot for most swing trades. The 10-day is too aggressive, and the 50-day often signals a deeper correction is underway.
Technique 2: Fibonacci Retracement Entry
Use Fibonacci levels to identify where pullbacks are likely to end.
- Draw Fibonacci from the swing low to swing high
- Watch for price to retrace to 38.2%, 50%, or 61.8% level
- Enter when price bounces off a Fibonacci level with confirmation
- The 50% retracement is often the most reliable
Technique 3: Trendline Support Entry
Draw trendlines connecting higher lows in an uptrend and enter on touches.
- Connect at least two higher lows with a trendline
- Wait for price to pull back to the trendline
- Enter when price bounces with a reversal candle
- Stop loss below the trendline
Candlestick Confirmation Signals
Use candlestick patterns to time your entries more precisely:
Bullish Reversal Candles
- Hammer: Small body with long lower shadow, shows buyers stepped in
- Bullish engulfing: Large green candle that engulfs the previous red candle
- Morning star: Three-candle pattern signaling reversal
- Inside day breakout: Today's range inside yesterday's, then breakout
How to Use Them
- Wait for price to reach your entry zone (support, MA, Fibonacci)
- Look for a bullish candlestick pattern
- Enter at the next bar's open or above the confirmation candle's high
- Stop loss below the confirmation candle's low
Hammer Entry Example
Stock pulls back to the 20-day MA at $48. A hammer candle forms with:
- Low: $47.00
- Close: $48.50
- Long lower shadow shows buyers defended support
Entry: $49.00 (above hammer high). Stop: $46.50 (below hammer low).
Time of Day Considerations
When during the day you enter matters more than most traders realize:
First 30 Minutes
High volatility and often erratic moves. Avoid entering new swing trades during this period unless it is a gap-and-go setup.
Mid-Morning (10:00 AM - 12:00 PM ET)
Often the best time for entries. The opening volatility settles, and real trends emerge. Many breakouts that will stick happen in this window.
Afternoon (2:00 PM - 4:00 PM ET)
Can be good for entries, especially if a stock has consolidated all day and breaks out late. End-of-day strength often continues the next morning.
Market Context for Entries
Always consider what the overall market is doing:
- Market trending up: Be more aggressive with long entries
- Market trending down: Be patient, wait for higher-quality setups
- Market choppy: Tighten your criteria, take fewer trades
Entry Checklist
Run through this checklist before every entry:
- Is the setup complete and clearly formed?
- Is volume confirming the move?
- Is the overall market supportive of this trade?
- Do I have a clear stop loss level?
- Is my reward at least 2x my risk?
- Is this the right time of day to enter?
- Am I forcing the trade or is it obvious?
Track Your Entry Timing
Pro Trader Dashboard helps you analyze your entry performance. See how your entry timing affects your results and identify patterns in your best trades.
Common Entry Mistakes
- Chasing: Entering after a big move because you feel left out
- Front-running: Entering before the pattern completes
- No confirmation: Entering without a trigger signal
- Ignoring volume: Entering breakouts with weak volume
- Wrong time of day: Entering during the chaotic first 30 minutes
Summary
Great entry timing comes from patience and discipline. Choose your entry style (breakout or pullback) based on the setup. Use confirmation signals like candlesticks and volume. Consider the time of day and market context. Run through your checklist before every entry. With practice, precise entries will become second nature and significantly improve your trading results.
Ready to learn more? Check out our guide on exit timing techniques or risk management.