Lesson 15 | Turning Points and the Three Questions of Every Trade
Rhythm Trading, Lesson 15. Turning points come from key resistance meeting nearby trend exhaustion. Before every trade, answer three questions: can I enter, can I defend it, is there room?
I wrote this guide based on how I actually trade gold. No theory — just what works after 10 years.
Key takeaways
- A turning point appears where key resistance meets a nearby trend running out of steam. Before every trade, answer three questions: can I enter, can I defend it, is there room?
In one sentence
A turning point appears where key resistance meets a nearby trend running out of steam. Before every trade, answer three questions: can I enter, can I defend it, is there room?
Why find turning points early
Spotting the turning zone early, near a relative high or low, does three things for you.
- Risk is controlled: the stop can sit close.
- Profit potential is largest, because you're at the start of a move.
- You stay calm, because you know what you're waiting for.
Where turning points come from
A push changes course because of key resistance plus nearby trend exhaustion. Resistance without exhaustion and price runs through it; exhaustion without resistance and price may only be resting. Only when the two meet do you get a turning point.
Three questions
| Question | What it asks |
|---|---|
| Can I enter? | Has the model appeared, and is price in an advantage zone? |
| Can I defend it? | Where does the stop go, and is it at a level the system recognises (beyond a rhythm line or valid point)? |
| Is there room? | Is the distance to the first target (1.382) at least 1.5 times the stop? |
If you can't answer any one of them, skip the trade.
An analogy
Before crossing a stream, check three things. Is there a stone to step on (can I enter)? Is it steady, and can I step back if I slip (can I defend it)? Is the other bank close enough (is there room)?
The most common mistakes
- Asking only whether you can enter. The reason to enter is strong, but there's nowhere sensible for the stop, or almost no room.
- Getting risk-reward backwards. Compare room with the stop: at least 1:1.5.
Explain it in your own words
- Which two things meet to make a turning point?
- What are the three questions?
- The stop is 6 dollars and there are 7 dollars to 1.382. Is the trade worth taking?
Practice
Take your last five demo trades and answer the three questions for each. For the losers, which question did you answer badly?
Previous: Lesson 14 | Pushing on and coming back Next: Lesson 16 | Watch only the nearest two valid points
This course teaches a method using past price action as examples. It does not forecast prices, recommend any broker or give investment advice.
Lesson quiz
Get 2 right to unlock the next lesson.
1. Which two things meet to make a turning point?
2. Which is not one of the three questions?
3. Stop 6 dollars, room to first target 7 dollars. With a 1:1.5 minimum, is the trade OK?
I don't predict. I prepare. Every trade I share here is placed with real money, in real time. No indicators, no noise — just price action and experience.
— Happy trading, Lin
Recommended Brokers
Recommended: Visit EBC → — tested across all sessions.
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