📕Low-Quality setups (UNCLEAR) VS High quality (CLEAR) setups📕
Updated
High quality (Clear) vs Low Quality (Unclear, wicky, random, guessing)
Setups in Our Trading
High quality clear (HQC) setups are best representations of your EDGE, they allow you to feel confident in the MOMENT of placing a trade, and you can feel relatively good about it even if it’s a loser, because you know you traded in clear market environment and did your best
HQC setups bring you HEALTHY excitement and joy from the process of your trading, in case of a winner, usually not leading to overconfidence and doesn’t lead to attachment to random reward, and in case of a loser - you are not dragged into revenge or depression, because you know losers are also part of your strategy and your execution was good
When you enter HQC setups that speaks about you as about a trader you tested their strategy, who knows what they want to see in the market and applied effort to stay away from bad condition and wait for a better one. These skills alone are so much better than 1 random +3R or +5R winner
Low quality unclear (LQU) setups mean something is out of your mental game today, you feel not feel good in longterm perspective trading them, because you kind of KNOW you should trade them, but you still do. It all sucks you into an emotional circle.
LQU setups bring you UNHEALTHY, short term lived overexcitement in case of a winner, attaching you to random rewards, which is fatal for a trader. Every time entering a LQU setup you develop a habit or “teach” yourself that it is easy and fast way of earning money. Just see something distantly reminding about your setup and enter. Sometimes you’ll get away, but longterm you’ll lose more.
LQU setups means you are you fully confident in your core strategy, and so you may unconsciously search for random entries, because you entered like this before and it brought you reward. Trading LQU setups is destroying your mental game and account in the short, medium and longterm
Picture attribution <a href="vecteezy.com/free-png/frame-border">Frame Border PNGs by Vecteezy</a>
Setups in Our Trading
High quality clear (HQC) setups are best representations of your EDGE, they allow you to feel confident in the MOMENT of placing a trade, and you can feel relatively good about it even if it’s a loser, because you know you traded in clear market environment and did your best
HQC setups bring you HEALTHY excitement and joy from the process of your trading, in case of a winner, usually not leading to overconfidence and doesn’t lead to attachment to random reward, and in case of a loser - you are not dragged into revenge or depression, because you know losers are also part of your strategy and your execution was good
When you enter HQC setups that speaks about you as about a trader you tested their strategy, who knows what they want to see in the market and applied effort to stay away from bad condition and wait for a better one. These skills alone are so much better than 1 random +3R or +5R winner
Low quality unclear (LQU) setups mean something is out of your mental game today, you feel not feel good in longterm perspective trading them, because you kind of KNOW you should trade them, but you still do. It all sucks you into an emotional circle.
LQU setups bring you UNHEALTHY, short term lived overexcitement in case of a winner, attaching you to random rewards, which is fatal for a trader. Every time entering a LQU setup you develop a habit or “teach” yourself that it is easy and fast way of earning money. Just see something distantly reminding about your setup and enter. Sometimes you’ll get away, but longterm you’ll lose more.
LQU setups means you are you fully confident in your core strategy, and so you may unconsciously search for random entries, because you entered like this before and it brought you reward. Trading LQU setups is destroying your mental game and account in the short, medium and longterm
Picture attribution <a href="vecteezy.com/free-png/frame-border">Frame Border PNGs by Vecteezy</a>
Note
Clear, better quality IMPULSES usually are:- literally “clear” moves;
- created confident BOS;
- good impulses accelerate through the break, not decelerate
- consist of relatively full body candles, with no slowing down in the middle;
- not too overextended/all over the place, but composed and clear structure
- good impulses accelerate through the break, not decelerate
Clear, better quality SnD ZONES usually:
- consist of 1-3 full body unmitigated candles, they are not overly small or big.
- same on neighbour timeframes
- caused a break of some kind
- mitigated something or ideally created a cluster/chain of SnD’s.
- situated within a high-quality Impulse.
Note
C: Low Quality (stay out)Much more unclear than B, especially on MTF.
Mostly C is about Confirm and MTF, which will be very unclear:
- Confirmed against the immediate impulsive PA on ETF, it usually happens after a good loser; (no CS or price slowing down)
On a BUY, Model on ETF is CLEARLY Dis or especially redis (so it’s only first or second break to our direction after sustained trend), and vice versa.
- Very wicky 1-2-4h, and no directional support from 5-30 min.
- Entry obviously against 15 AND 60 min. at the same time or sometimes against any other obvious MTF combination. Usually, it will be combined with bad internal structure.
Confirmed with fractal structure only.
Confirmed with no candle break or slowing down of price.
Confirmed with internal should be very clean to be B. Otherwise, it’s B-.
- obvious wicky sideway movement on 5-15mi. (do not confuse it with tightening of ICI after first impulse)
- Overall absence of good context, messy price action, not enough confluence, early entries etc.
- Intuition, feeling something is very wrong (usually you will know what’s wrong, like trying to catch early entries etc.), especially during low emotional days.
- Daily loss limit reached (for me its when I had 3 losses of B- quality, or 3 losses with risk of x1.5 compared with the plan, or -2% reached)
- Zone entry limit reached
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.