3 Logical Reasons My Trade Entries Are So Precise

Have you ever heard the term "perma-bear"?

It describes those analysts who constantly claim the next market crash is just around the corner.

They can be wrong for months, even years, but eventually they get it right. Then it’s, “I told you so!”

People build entire careers on these bold market calls. But here's the truth—you could flip a coin to guess the big picture direction and be right half the time.

Even the worst traders will have moments when they just know where the market is heading in the long term.

That’s the easy part.

The real challenge is timing the ideal entry for a trade. That’s where most traders fail because it relies on something most of them don't have... Precision.

When you can time your entries with pinpoint accuracy, you have the foundation of a great edge. You can maximise the upside of an opportunity while minimising the downside, and more accurately estimate the probabilities.

It’s what separates a good analyst from a great trader.

This level of precision is one of the standout aspects of the Duomo Method that I’m most proud of. But it doesn’t come from rigid rules. It’s developed through a logical approach and the skill to interpret and anticipate price moves effectively.

There’s a mantra I follow that underpins this:

Use the right tools, in the right way, at the right time.

At first glance, it may seem obvious. But when you break it down, a more important question comes to mind: How?

Here are the three critical things that allow me to follow this mantra and achieve precision with my trades.

1. Interpret the Context

Many traders fall into the trap of reducing analysis to simply identifying levels or patterns on a chart. It becomes an exercise in plotting objects, rather than truly interpreting market dynamics.

When done properly, analysis is more like a problem-solving exercise. It’s about dissecting and understanding what’s happened in the market, assessing the current situation, and using that to anticipate what may happen next.

It uses critical thinking, not just pattern recognition.

You have to remind yourself that the market isn’t just the movements on a chart. It’s a place where millions of participants are interacting, each with their own motivations, strategies, and actions. Every change in activity has an underlying reason.

For me, the starting point of any analysis is to understand these dynamics. Only once I have that broader context can I make sense of how certain tools or levels might signal something meaningful. Context gives tools their significance.

The price movements tell a story. So think of it like reading a novel, if you want to understand what’s happening on page 78 you first have to:

1. Understand the language of the book
2. Digest what’s happened from pages 1 to 77

Without doing that first, you’ll miss the nuances and underlying narrative that gives you clarity. Rather than precision, you’ll be relying on guesswork.

2. Confirm Significant Levels Consistently

Once you’ve established the context, the next step is identifying and confirming significant levels and potential outcomes.

Back in 2014, my team and I were developing an algorithmic trading system. We built several indicators for testing, including one of my favourites: WickTrends.

WickTrends tested all possible trend lines within specific parameters across a given period of time. The screenshot below shows it being applied across 200 bars… It’s a mess!

With so many possibilities, even if one trend line was “correct,” what are the chances of a trader choosing it over the alternatives? This explains why many traders face inconsistent results using technical analysis.

A common criticism is that technical analysis relies too much on trader discretion. The usual comeback is to claim, “It’s an art, not a science.”

But I don’t believe that’s true.

We wanted consistent ways to confirm correctly positioned levels. So we followed the principles of the scientific method.

We started with a hypothesis: our theory of price behaviour, known as the Duomo Market Theory. We then asked ourselves, “If this is the case, which tools, techniques, or levels would provide meaningful insights in line with that theory?” This allowed us to establish precise criteria, which meant we could test our approach consistently to confirm or disconfirm its validity.

This process left us with techniques for confirming significant levels with precision, in a way that was consistent and testable.

3. Trade Against Evident Weakness

The final piece of the puzzle is determining when to enter or manage a trade. Timing is everything, and this is where most traders struggle.

A common mistake is entering a trade as soon as the price touches a key level—sometimes even using a ‘set and forget’ approach with limit orders. However, this method overlooks the context at the point of entry. How do you know if the price will break through or reverse?

This is the basis for one of my unique trading philosophies:

Don’t trade anticipating strength in a price move. Trade against evident weakness.

This subtle shift completely changes how I look for opportunities.

For example, when I’m trading a potential reversal, I’m not assuming the opposite direction has strength. Instead, I’m identifying weakness in the current move, which increases the probability of the opposite move being more dominant. Similarly, when I trade a breakout, I don’t blindly trade in the direction of the break. I wait to spot weakness in the opposite direction.

Why? Because when a price move has strength, there’s no telling how far it might continue. But weakness reveals much more. If a move is losing conviction, it signals that the current activity level isn’t sufficient for continuation, which gives me a stronger basis to anticipate what’s next.

The key question then becomes: how do I consistently identify failure at a level?

I have a set of logical criteria based on the Duomo Market Theory that allows me to spot signs of weakness in a consistent and testable way. This helps me time my entries with greater precision, aligning with the key levels where I’m expecting a shift in market activity.

Those three things are the foundation of the breathtaking precision traders can achieve with the Duomo Method. But to develop this skill for yourself, you need to go beyond just knowing the concepts.

If you're ready to take the next step, I'd recommend starting with our Free Trader Masterclass. After the session, I'll send you more lessons that dive deeper into the specifics of the Duomo Method, helping you develop a more logical approach in your trading.