Entry and Exit Strategies: Master Trade Timing in Crypto
When to enter and when to exit—these decisions determine your profitability. Learn systematic approaches to both.
- Entry and exit strategies must be defined before you trade—not decided in the moment when emotions run high.
- Exits matter more than entries. Cutting losers and letting winners run is the core skill.
- Thrive provides entry signals and helps manage exits with smart alerts and profit tracking.
Explore Entry & Exit Strategies
Click through different entry and exit approaches:
Enter when price closes beyond significant support/resistance.
Rules
- 1.Wait for candle CLOSE above/below level—not just wick
- 2.Volume should increase on breakout candle
- 3.Enter on close or set limit at level for retest entry
- 4.Stop below breakout level (for longs)
Momentum traders, trend traders
Why Entry and Exit Strategy Matters
Trading without defined entry and exit rules is gambling. When you enter trades based on feeling and exit based on emotion, you're at the market's mercy. Systematic strategies remove emotion and create consistency.
Most traders obsess over entries—the "perfect" buy signal. But exits determine outcomes. A trader with mediocre entries but excellent exit management will outperform a trader with great entries who panics out of winners and holds losers.
Entry Strategies
Breakout Entry
Enter when price breaks through key support/resistance. Wait for candle close beyond level—wicks don't count. Volume should increase on breakout. Stop below breakout level. Best for momentum traders.
Pullback Entry
Enter on retracement to support in a trending market. Better risk/reward than breakouts but requires patience. Wait for confirmation (rejection candle) at support. Stop below pullback low.
Limit Entry at Level
Place limit order at predetermined level and wait. Best price if it fills, but may miss the move. Works well for anticipated reactions at strong S/R.
Scaled Entry
Enter in portions: 50% at first trigger, add 25% on confirmation, final 25% on strength. Reduces timing risk but may result in higher average cost if trade works immediately.
| Entry Type | R:R | Fill Rate | Best For |
|---|---|---|---|
| Breakout | Medium | High | Momentum traders |
| Pullback | High | Medium | Patient traders |
| Limit at Level | Highest | Lower | S/R traders |
| Scaled | Variable | High | Risk-averse traders |
Exit Strategies
Fixed Target Exit
Exit at predetermined price level or R multiple. Simple, removes emotion. May leave money on table if trade goes further. Works well for range trading.
Scaled Exit
Exit in portions: 50% at first target, 25% at second target, trail rest. Locks in profits while allowing upside. Balances certainty with potential. Most versatile approach.
Trailing Stop Exit
Trail stop below swing lows (for longs). Exits when trend structure breaks. Lets winners run but may give back profits on normal pullbacks. Best for trend following.
Time-Based Exit
Exit if trade hasn't moved after X time regardless of price. Frees capital for better opportunities. Useful for momentum trades where quick follow-through is expected.
Creating Your Rules
Write down your entry and exit rules before you trade. Be specific:
Entry Checklist Example
- Daily trend is up (price above 20 EMA)
- 4H pullback to support zone
- Bullish rejection candle at support
- Volume declining during pullback
- Enter on close of rejection candle
- Stop below pullback low + 0.5%
Exit Checklist Example
- First target: previous swing high (exit 50%)
- Move stop to breakeven after first target
- Second target: next resistance or 2R (exit 25%)
- Trail stop below each new swing low (final 25%)
- Exit all if daily close below 20 EMA
Common Entry/Exit Mistakes
- No plan: Deciding entries and exits in the moment = emotional trading
- Moving stops: Widening stop to "give it room" turns small loss into big loss
- Exiting early: Taking profit because of fear, missing larger move
- Adding to losers: Averaging down is not an exit strategy
- Ignoring time: Holding dead trades, missing other opportunities
Frequently Asked Questions
What is an entry strategy?
An entry strategy defines when and how you enter trades. It specifies the conditions that must be met, the exact trigger for entry, and your initial stop loss. Without a defined entry strategy, you're gambling.
What is an exit strategy?
An exit strategy defines when and how you close trades—both winners and losers. It specifies profit targets, stop loss placement, and how to manage the trade as it progresses. Most traders focus too much on entries and neglect exits.
Which is more important, entry or exit?
Exits are more important. A good entry with bad exit management loses money. A mediocre entry with excellent exit management can be profitable. Letting winners run and cutting losers short is the key skill.
What is a breakout entry?
Entering when price breaks through significant support/resistance. Wait for candle close beyond level (not just wick). Enter on close or set limit for retest. Stop below breakout level. Best with volume confirmation.
What is a pullback entry?
Entering on a retracement in a trending market. Wait for pullback to support (MA, Fib, horizontal) and enter on bounce confirmation. Better risk/reward than breakout entries but you may miss some moves.
What is a scaled exit?
Exiting in stages rather than all at once. Example: exit 50% at first target, move stop to breakeven, trail rest. Locks in profits while letting winners run. Balances certainty with upside potential.
How do I know when to exit?
Before you enter. Define exit criteria in advance: target levels, stop loss, time stop. Then execute the plan. Making exit decisions in the moment leads to emotional mistakes.
Should I use market or limit orders?
Depends on priority. Limit orders: better price, may not fill. Market orders: guaranteed fill, may slip. For entries: limits are usually fine. For stop losses: market orders ensure you exit.