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It's a Set-up... Print
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Sunday, 05 April 2020 12:55

It's a Set-up...

This week, during a coaching session, on talking about chart setups, I was asked what is a setup? A fair question.

No, it was not referring to those whacko alternative media theories about the 'reasons' why, and from where, the Coronavirus was a 'setup' released into world.

What we did discuss were market trading setups, a noun, not a verb.

Whilst we are adjusting to the lock down, and the stock market collapse, it has left many confused. But some things haven't changed.

The markets are still going up, down and sideways. Just as they always did and will continue to do so.

So what is a setup?

Over the last few weeks I have shown several, here and here.

These chart pattern setups often repeat, so when we see a similar pattern of price action developing, it's time to get ready to trade.

Just this week we saw the good old standard multi-point reversal setup as the US$ strengthened. This is the price action only chart:

low1

The previous low at (1) was followed by a higher low at (3). The next morning gave another higher low at (5). An automatic buy stop order was placed so we could get on with other things away from the PC.

The trade gave us just under a 100 pip run through to the next day.

low2

The same chart, with some simple TMEST indicators, helps highlight the new trend. Add a rule on where to buy and take profits and a trading setup becomes a system.

Traders Class members twice weekly videos feature some of these setups as they occur and they will also feature in a new upcoming video course. Priority and heavily discounted for members of course.

Join Traders Class with a special course deal. Email for details or click this link and get started now.

 

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