{"id":116004,"date":"2017-11-13T11:01:41","date_gmt":"2017-11-13T16:01:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=116004"},"modified":"2018-06-01T15:53:25","modified_gmt":"2018-06-01T15:53:25","slug":"%e2%80%8b8-insider-tips-how-to-select-and-manage-trade-setups","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/%e2%80%8b8-insider-tips-how-to-select-and-manage-trade-setups\/","title":{"rendered":"\u200b8 Insider Tips How to Select and Manage Trade Setups"},"content":{"rendered":"
November 13, 2017<\/div>
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By Admiral Markets<\/b><\/p>\n

\"Untitled<\/a><\/p>\n

Dear traders,<\/p>\n

Being traders of the financial markets, we all know how difficult it is to strike the right balance in the number of setups entered. Especially, if the market is slow and corrective, it becomes even more tempting to enter an
\niffy<\/em> setup because we run out of patience.<\/p>\n

Having problems with selecting and managing trade setups? Read my four solutions for selecting only the best trades setups and how I use a four-step system for managing open trades.<\/p>\n

My solution is based on refining my trade selection and flexible approach towards trade management. This article explains the specifics used for such an approach.<\/p>\n

\"Advanced<\/a><\/p>\n

My Methods for Trade Selection<\/h2>\n

Of course, the number one rule is to stick to your trading plan or trading system. But if you trade like myself, then there are plenty of setups that fit within your trading plan, but still do not pass the bar for an entry.<\/p>

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Within my
\ntrading plan<\/a>, I am always on the look for high probability setups in the first place. But less interesting trade setups are also considered when the market is slow and not moving much.<\/p>\n

Where do you place the line? When do you filter out some setups, but skip others?<\/p>\n

These questions have no universal answer. There are four tips though that work in my favour:<\/p>\n

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  1. Know your risk profile;<\/li>\n
  2. Find and focus on your trading niche;<\/li>\n
  3. Understand the road map for the price;<\/li>\n
  4. Candlestick confirmation.<\/li>\n<\/ol>\n

    Know your risk profile<\/h3>\n

    Part of the equation rests on your own personal risk appetite and mentality. Risk seekers will typically set the bar at a lower level than risk-averse traders, who might want to use more filters and be more cautious.<\/p>\n

    Your trading niche<\/h3>\n

    The second important aspect is to find your trading niche within your system or analysis. For me, it’s trend and momentum setups. I feel most confidence in those setups and therefore have the most conviction when entering a setup. That niche is different for everyone of us, so we need to do our homework and find what works best for us.<\/p>\n

    Road map for the price<\/h3>\n

    The third aspect is to understand “road map of price” by analysing the path of least resistance. Price flows via the path of least resistance are in a way similar to water running down a mountain into the valley, river, or sea. By analysing the
    \n    market structure<\/a> \u2013 patterns, trend, and S&R \u2013 traders can estimate that path and seek out a part and place where the setup has better odds.<\/p>\n

    Candlestick confirmation<\/h3>\n

    Nothing provides more direct information than candlesticks and price action. Candlesticks and candle patterns offer direct information about whether the price is bouncing or breaking, for instance. I personally use candlesticks to confirm my entry after I have analysed the market structure and indicated a zone of interest (also known as decision zone or point of confluence).<\/p>\n

    Watch the video below for more ideas and tips on finding high probability trade setups!<\/p>\n