分類:Setups

A setup is composed of two (or more) "things", usually a signal (to enter the pattern) and context (that supports trader's expectation that the same pattern will unfold). Without both, you should not take a trade. By context, I mean all of the bars to the left have to be supportive of your trade. A perfect candlestick pattern in the middle of a tight trading range will consistently lose money. You need other reasons for taking the trade, like the market being at a confluence of support or resistance^[1].