Price clearly in a downtrend, has pulled back and it's now testing a level where we have previous structure along with a slide parallel of a valid slope median line which has acted as resistance several times. At that level we may start watching for a sell setup to complete based on our strategy.
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It looks like price is breaking above the slide parallel. Till it reaches the upper parallel of the pitchork we look for no shorts. No need to say that this idea is no longer active. Once again we have a good expample why we need a setup before getting involved in markets. No setup, we move on..!
I would like to understand a little more deeper about the meaning of setup , can you please clarify further. Always a setup word is being used in the portal , what we really mean when Setup said in your point of view?
thanks
Fxprotrader
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A setup is a set of conditions that come together in such a way that allow you to realise your objective. Now this could be a pattern, a candlestic formation, simple market structure with specific risk/reward ratio. Make sure the strategy (setup) you decide to use is a tested one.
thanks