An entry point in forex refers to the specific price level or moment when a trader decides to enter a trade by buying or selling a currency pair. It’s a crucial component of trading because it directly impacts a trade's potential risk and reward.

Finding the right entry point requires a combination of technical and fundamental analysis. Technical traders often use support and resistance levels, trendlines, chart patterns, and indicators such as Moving Averages, RSI, or Fibonacci retracements to identify favourable entry points. For example, a trader might wait for a currency pair to break above a resistance level to confirm a buying opportunity.

Fundamental traders, on the other hand, look for entry points based on economic news, interest rate decisions, or geopolitical events. For instance, if a central bank announces an interest rate hike, it might signal a strong entry point to buy that currency.

Patience is critical when choosing entry points. Entering too early can expose the trader to unnecessary risks while entering too late can diminish profit potential. By combining analysis, timing, and discipline, traders can identify optimal entry points that align with their trading strategy and risk management plan.