WHAT is a day trade setup combination?
consider: market conditions – price – pattern – indicator | setup – trigger -vs- indicator – trigger consider: the more components that combine into a setup the more confidence in the setup AND the more selective your trading will be There is a limit to how many things a trader can be thinking about and also react to a trade trigger in a timely fashion. The visual that can be gained from an indicator, especially something like a momentum indicator that is green or red, is the simplest and ‘fastest’ way to respond to a trade. HOWEVER is it the most effective – AND in certain market conditions is it effective at all? My answer to this is no – that although indicators can be/are very useful – they do not comprise a trading system that allows ALL indicator triggers to be taken as trades without further consideration. HOWEVER we are back to how much can be thought about real time and react timely – I address this in 2 primary ways: (1) setup-trigger AND how this effectively ‘slows’ down a c
