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Module D · Trade Setup & RiskBeginner Free

Entry Near the Proximal Line & Entry Types

7 min read
Learning objective
Select the correct entry type (1, 2 or 3) based on the zone's Trade Score and trade with precision at or near the proximal line.

Why entry starts at the proximal

Entering as close as possible to the proximal line keeps the stop distance (to the distal) small, which directly improves the reward-to-risk ratio. Every extra point below the proximal you enter costs ratio.

Entry Type 1 — Set-and-Forget (Score ≥ 7)

Place a resting limit order AT the proximal line before price arrives. Do not watch the screen. When price reaches the zone, your order fills automatically and the stop is pre-placed below the distal. This requires the highest conviction — Trade Score of 7 or above. Tightest entry, best R:R, but no real-time confirmation.

Entry Type 2 — Zone-Close Confirmation (Score 5–6)

Wait for a candle to CLOSE inside the zone (between proximal and distal). Then wait for the NEXT candle to also OPEN inside the zone. Enter at that second candle's open. This gives one level of confirmation that price has entered the zone without breaking it.

Entry Type 3 — Reversal Confirmation (Score 5–6, counter-trend)

Wait for a candle to close inside the zone, then wait for the NEXT candle to close ABOVE the proximal line (for demand) or below the proximal line (for supply). Enter at the open of the candle after that. Safest — confirms the zone is holding and price is reversing. Costs some move but is lower-risk.

Score below 5: no trade

A Trade Score below 5 means the zone doesn't have enough quality factors aligned. Skip the setup entirely. Patience is part of the method — being selective is what makes it work over time.

Practice checklist

  • Calculate Trade Score before choosing entry type
  • Score ≥ 7 → Type 1 limit order at proximal
  • Score 5–6 → Type 2 (close in zone + next candle opens in zone) or Type 3 (close in zone + next close outside proximal)
  • Score < 5 → skip
  • Place stop below distal line before price arrives

Mistakes to avoid

  • Using Type 1 (set-and-forget) on a low-quality zone — only justified at score ≥ 7
  • Chasing price far inside the zone — every point from proximal costs reward-to-risk
  • Entering before price reaches the zone just because 'it looks good'
Quick check
A Trade Score of 7 supports which entry type?
Risk note — Entry type is a study framework only — never a recommendation to place live orders.