Have you ever seen a bird flying in the high mountains? Have you ever seen it hunting? It flies all over the sky. It does not wander in any slight movement. Nor does it chase any fast-running animal. It just watches and observes. Sometimes it does not move for hours. Because it knows that if the entry is wrong, then the energy will be wasted. And if the timing is perfect, then it will be hunted in one go.
Now think, do you treat it like a bird? Or like a pigeon? Which flies on every sound. There are two types of traders in intraday trading. One is the one who reacts to every price movement. And the other is the one who patiently sits and waits for the correct entry.
Just as a bird waits for the right time, a professional trader waits for the signal, observes confirmation, and then enters with precision and exits. A bird never drags the prey to itself. It knows how long it has to be caught. Similarly, a trader must understand where to book a profit and when to stop.
We will learn the perfect entry and exit strategy—the art of watching, thinking, and trading like a bird. Today, you are not a trader, but a hunter. You will not just look at the chart; you will hunt with the correct entry, clean exit, and zero invoices.
Every trader wants to be successful. But you know, because 90% intraday traders are not consistent. Because they react to the signals, not act on the confirmation. And they make mistakes on two things. First, they enter early without understanding the structure.
They exit very late, out of fear or greed. In trading, entry and exit are not just techniques; they reflect the trader’s psychology. Entry shows how confident you are. Exit shows how disciplined you are. If you don’t make the correct entry, the market eats your stop-loss. And if you don’t exit at the right time, the market eats your profit.
That’s why today we will learn when, how, and why to enter. On which signals to exit. And most importantly, how you can be confident in every trade.
The 5 Pillars of Perfect Entry
Look, entering trading is an art. And to learn this art, you have to understand 5 pillars.
1. Selection of the Right Time Frame
The first pillar is selecting the correct time frame. It’s not right to make entries at all times. The market is volatile at 9.15. There are more chances of traps. Or at 1.30 to 2.15 pm. We should use 2–4-time frames: a longer one, such as 15 minutes or 1 hour. To understand trends. For a lower time frame, 5 minutes or 3 minutes. To catch the entry trigger.
2. Respect the Trend
Pillar number 2, Respect the trend. Trend is your friend, everyone says. This is not just a saying; it is a guideline. First, identify whether the market is in an uptrend or a downtrend. Or sideways. For this, use a simple tool. Market structure. An uptrend is characterized by higher highs and higher lows, whereas a downtrend is marked by lower highs and lower lows downtrend. And sideways means range-bound with a breakout. Until the trend is clear, don’t trade at all.
3. Breakup Structure and Retest
Pillar 3, Breakup structure, is part of SMC. We were talking about breakup structure and retest strategy. Here, traders are most trapped. If the resistance breaks, people buy immediately. But what does SMC do? It waits for the retest. For example, Bank Nifty broke the Rs 69,000 resistance level. The price went up. It came back to retest. If it makes a label support and a bullish candle, that is the perfect time for entry. What will you get from this? Better risk-reward. Your stock loss will be fixed. And your entry confirmation will be the best.
4. Volume Confirmation
Pillar number 4, Volume confirmation. Don’t do an entry without volume. If you are not scalping. If there is a breakout but the volume is low, it indicates a false breakout. If there is a retest and the number of buyers is increasing, that is confirmation. Use the volume bar plus relative volume indicators. You will get it in Trading View.
5. Entry Candle Selection
Pillar number 5, Entry candle selection. One mistake that 70% of people make is taking entry between the candles. Always wait for the candles to close. Look at the confirmation candle. Like bullish engulfing, hammer, and breakout candles. Take entry after the confirmation candle closes. And where to put the SL? Just below.
Now make a checklist for entry. Take a paper and write on it. Was the trend clear? Did the structure break out? Was the retest confirmation candle? Was the volume supporting? Was the time frame aligned? If all these things are happening, then only do entry. Otherwise, give time and observe.
The 5 Golden Rules of Exit Strategy
Now let’s talk about a perfect exit strategy. If you want to save on profit, you should know how to exit. After entry, every trader dreams of a rocket price. But the reality is that the market does not always give you maximum profit. That’s why a skilled trader makes an exit plan alongside an entry. We will discuss the 5 golden rules for exit.
1. Define Risk Reward Beforehand
First, define the risk-reward beforehand. Before entering the trade, ask how much risk am I taking? How big is my target?. Standard risk-reward: A1 is to 2 or more. If the SL is 500, the target should be 1000 or higher.
2. Use Trailing Stop Loss
Rule number 2: Use a trailing stop loss. I am telling you all these things not for the scalper, but for the long term, which gives some time in trading. Assume that the profit is running. Keep moving the SL along with it. Take the SL at the break-even point first, then move the SL below the higher low or support. This will lock your profit. And the best thing will be that your greed will be controlled.
3. Exit on Structure Break
Rule number 3: Exit on structure break. If you are in an uptrend and the price breaks a significant high or low, it means weakness has set in. Exit and take as much profit as possible. Structure never lies.
4. Time-Based Exit
Rule number 4, time-based exit. Many times, the price gets sideways. Neither the SL nor the target hits. What is essential in this? We spend more time because neither the SL nor the target hits. Define a maximum holding time for every trade. For example, if there is no 1-hour move, we exit to determine whether there is a profit or a loss. Respecting time is a discipline. Keep these things in mind.
5. Volume Exhaustion Signal
Rule number 5, volume exhaustion signal. The price has reached the target, and the volume is slowly decreasing. What does it mean? The buyer and the seller are tired. Either exit partially or book the entire profit. Profit book is better than profit made.
Now make a checklist on paper. Did we achieve the RR? Our risk-reward. Was the structure weak? Was the volume falling? Did the time limit exceed? Was the indicator divergence visible?. If any of these are there, exit immediately. Don’t think too much. There is no chance of regret.
A Practical Example and Final Thoughts
Now you know the entry and exit. Now I am giving you a bonus. Let’s take an example of a bank entry. At a 15-minute timeframe, the resistance is at Rs. 49,500. The price broke Rs. 49,500. Then there was a retest. At a 5-minute timeframe, there is a bullish engulfing.
The volume has spiked. Where is the entry? The entry is at Rs. 49,550. Where is the SL? At Rs. 49,400. The target is set at Rs. 49,900. The market went up to Rs. 49,870. The volume began to fall. What did I do? I exited. The profit was Rs. 300. What is the RR? Rs. 2.5. Zero stress. The entire process. Think how fun it is.
But what happens in reality? In reality, we become hectic. And start working backwards. I am telling you one final thing. It is easy to make a strategy. It is difficult to run on it. The market gives a new signal every day. What do you want? You want to wait for the proper setup.
Confidence to enter without fear. Discipline to exit without greed. There is no secret to entry and exit. It is a system. Running on a system may seem dull. But boring makes it consistent. Remember, money does not earn fast in the market. Money earns more discipline.
We have now learned the entire entry and exit strategy. Next time, before taking a trend, ask yourself these 5 questions. What is the trend? Is the structure breaking? Is it forming? What does the volume say? Is my target set? What will be the signal at the exit?. If you have answers to these 5 questions, take a trade. Otherwise, observe the market. Don’t trade at all.
