April 16, 2008

Setups

- setups refer to conditions that must occur before other action is taken
- setups represent 10% or less of a trading system

Things to take into account when searching for a setup:
- time filter ( cycles, seasonal data. astrological data etc. )
- price data in sequence
- fundamental data (supply - demand characteristics)
- volume data
- composite data ( i.e. how many stocks are advancing )
- volatility
- business fundamentals (earnings, yield, sales, profit margins)
- management information (