I read Joe Ross’s chart Scan Newsletter, and he mentioned some considerations when looking/designing setups. I find it to be useful.

  • Do I see something that happens frequently, at least as often as often as I want to trade?
  • When the event or setup takes place, does it offer me the range of movement I need to be profitable?
  • Where would I place my protective stop, and how often would it be hit?
  • Is the daily range sufficiently large that I can get the ticks or points I need to make money?
  • Is there sufficient volume at this time of day for me to easily be filled?
  • Do I get decent fills in this market?
  • What kinds of orders can I use to accomplish what I would like from this setup?
  • Am I able to find more than one setup in this time frame, and how well can I answer the questions already asked for each setup?

From the desk of Tradergav.com


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