Writing clear entry rules from chart signals
You recognise a setup on the chart. That recognition lives in your head until you write it down. The gap between "I know it when I see it" and a rule someone else could follow is where most trading plans fall apart.
The IF/THEN structure
Every entry rule in a plan should follow this skeleton:
- IF — the market conditions and chart evidence that must be present
- THEN — the action you take (entry type, order type, timing)
- UNLESS — optional filter that disqualifies the setup (news event, opposing higher-timeframe trend)
Example for a range breakout on EUR/USD four-hour chart:
IF price consolidates for at least eight candles between 1.0840 and 1.0890 AND the range high was tested twice, THEN enter long on a four-hour close above 1.0890 at the next candle open, UNLESS a high-impact ECB announcement is scheduled within four hours.
Words to eliminate from entry rules
These adjectives appear constantly in draft plans and mean nothing on a chart:
- "Strong" — strong compared to what?
- "Clean" — define the candle structure instead
- "Obvious" — if it were obvious, you would not need a rule
- "Momentum" — specify which indicator or price action confirms it
Replace each vague word with a measurable condition: a candle close, a level touch, a minimum range width, a count of prior tests.
The read-aloud test
In our workshops, participants read their rules to the group. If anyone asks "what do you mean by that?", the rule goes back for rewriting. Do this alone: read the rule aloud, pretend you have never seen the chart, and check whether every noun refers to something drawable on the screen.
One setup at a time
Resist documenting five patterns before the first one survives historical review. Write one rule, scroll through three months of charts, and mark every instance where the IF condition was met. Count false signals. Adjust the UNLESS clause or confirmation requirement until the rule matches how you actually want to trade.
Entry rules connect to the levels you documented and to how you size and target the trade. All three sections must agree before the setup goes live.