The Importance of Entry Location

A good signal at a poor location can still produce a bad trade.

Suppose a footprint chart shows strong buying activity.

If NQ is breaking above an important resistance level and sustaining the move, the signal may support a continuation idea.

But if the same buying activity appears immediately beneath a major resistance area, the risk may be different.

This is why I separate location from confirmation.

First, I identify where a setup makes sense.

Then I look for evidence that supports the entry.

Finally, I calculate the risk and potential reward.

The strongest-looking signal isn't always the best trade. A setup needs both a meaningful location and a risk plan that makes sense.