There are many ways to evaluate market conditions. Personally, I think relative strength, sentiment, and market correlation dynamics are three most important factors. I use them to evaluate market and sector conditions, then use the price action of individual markets to choose markets for entries. Here are my three ways for entry:
1. Regional breakout.
2. Relatively strong in a weak market (accumulation) and relatively weak in a strong market (distribution).
3. Extreme reversal.
One thing that is very important to the entry is to choose a right time and a right price to enter a position, a right position. If a position has a good profit right at the start, it means I have a right position with the market. Then I hold the position. If the position has a loss or struggles to have a profit after I enter it, the market tells me that I have a wrong position. Then I exit it.
Ways for Exits are much more challenging and difficult to define than those for entries. Here are my three ways for exit:
1. one of effective ways to exit is to close a position when a market has a extraordinary move with a huge volume (at least more than 10% price move and more than triple average volumes) in my favor direction. This kind of move is normally an exhaustive move. Also I have a windfall profit, then take it.
2. Swing high/low stop.
3. Multiple ATR trailing stop.
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