4 Ways You Can Find High Probability Trading Setups

Probability is the measure of the

likelihood that an event will occur

There is nothing certain in trading

Random distribution of wins and losses

throughout the use of the trading technique

I think being exact in your thoughts is

very important

DO HIGH PROBABILITY

TRADING SETUPS EVEN EXIST?

There are many good trading entry setups out there, but few of them stipulate where or when to use them

The most directional potential energy?

You must have a trading system that

has a positive expectancy

Back Testing

If many traders believe in an

opportunity…..

Directional moves can start from anywhere…

BUT…..

This doesn't mean they are right.

Maximizing the probability of

your particular trading technique

Let's take a look at some examples

LOOK AT THE PRIMARY TRADING SESSION OPEN

FOR TRADING SETUPS

SESSION AND RANGE GAPS

In general, gaps are most prominent when charting the primary

market session

STRONG IMPULSE MOVES CAN LEAD TO ANOTHER FOR A POSSIBLE TRADING SETUP

You need to understand what a big move is for the time

frame that you personally trade.

A 20 tickmove hasdifferent meanings

HIGH PROBABILITY TRADING SETUPS WITH BALANCED OR

RANGING MARKETS

DecisionPoints

They are far more reliable in their action

when they are based on a longer time frame

You shouldn't expect that a strategy will work in

every location and every moment in time

Target trades that occur when a market has a high level

directional potential energy.

Stay out of the noise.

Combine a good entry setup and technique with good location