Finding the Best Trading Setup

One of the most difficult aspects of being a newbie trader is finding the best trading setup for your circumstances. Finding the best trading setup is absolutely crucial to your overall success. After all, a good and profitable trade all starts at the beginning.

Therefore, exactly how you enter a trade is going to dictate how much money you make, or if you make money at all. Generally speaking, this is the case whether you are a forex trader, crypto currency trader, stock market trader, commodities trader, or anything in between.

The fact of the matter is that if you don’t have a good trading setup, nothing is going to go your way and you are most likely going to lose trades. Here, you need to know what the best charts are to find your best trading setups, and this is the case in terms of the time frames.

Moreover, knowing whether or not to use indicators, and which indicators are best is essential to. The fact of the matter is that to make your life is easy and profitable as possible, finding the best trading setup is absolutely essential. However, today we are going to keep things very simple.

We are going to help you find the best trading setup simply by looking at your charts and using support and resistance levels. We aren’t even really going to talk about using indicators, besides the small section at the end. Let’s get right to it and help you find the best trading setups so you can start making money on a daily basis.

trading setup

How to Find the Best Trading Setup

Do you plan on finding the best trading setup for you, looking for a set up where you can determine that the price is going to break out of a key level is essential. This is generally what we are here to look at today, price is breaking out of support and resistance levels.

One of the best things that you can do when finding the best trading setup is to take a look at the triangle trading pattern. Here, you are looking for either uptrending markets or downtrending markets, and here you are looking to create a triangle shape. Once you have created a triangle shape that is complete with corridors, you can then place profitable trades.

The really neat thing about this type of trading setup is that it is very simple and all you need are your charts, as well as knowing how to place support and resistance levels. Moreover, you also need to remember that this is all about trading quality not about trading quantity. The fact of the matter is that if you find a good trading setup, you don’t need the place many trades at all.

The more trades you place, the more risk you engagement, and the more attention you have to pay to all of those individual trades. Therefore, the best thing you can do as a newbie trader is to place one single trade per day where you can make many thousands of dollars of profits.

trading setups

Using the Best Timeframe

One of the things that is very crucial when it comes to finding the best trading setup is having the right time frame to begin with. When you are setting up your trades, especially when using this triangle support and resistance method come what you always want to look at the longer timeframes first. Generally speaking, you want to look at the one day time frame first, you then want to look at the one hour time frame.

Remember that while shorter timeframes are good for some purposes, they really aren’t the best for finding the best trading setup. However, those shorter timeframes are ideal for finding specific entry points.

What you are looking for here is when the price breaks out of that triangle that you just created. This is where you will find the best trades. What you are looking at here are your support and resistance lines. You are going to use those support and resistance lines to place your trade.


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Using Support and Resistance

What you need to know now is how to place those support and resistance lines to find those triangle corridors to trades with. Of course, the point here is for you to see when the price breaks out of one of these corridors, either breaks out of support or breaks resistance.

the next thing that you need to know here is that if the price breaks the upper resistance line, then your take profit is going to be the previous swing high level. Of course, what you are going to do here is to place a buy trade. On the other hand, if the price breaks below the support level, then you are going to want to place a sell trade. The take profit level here is going to be the previous swing low.

trading setups

That said, you obviously don’t want to spend all day sitting in front of your computer waiting for these breakouts to occur. Because of this, it is very beneficial if you set up the alert system in your trading platform of choice.

This way, you can set up your support and resistance levels, and then, when the price breaks one of these support or resistance levels, your computer or smartphone will notify you, therefore allowing you to place a trade very quickly.

However, things don’t end there, because you continue making money. The fact of the matter is that if the price breaks the resistance line, and continues rising, you then want to place a second resistance line up top. This second resistance line is going to be at the next swing high level.

The first resistance line was broken, so it actually becomes your new support line, and you then place a new resistance line. You now have two trading corridors for two trades, the first support and resistance zone, and the second support and resistance zone. Both of these zones allow you to place profitable trades.

trading setups

Finding the Best Trading Setup – Final Thoughts

At the end of the day, if you follow the tips as listed above, you should have no problems finding the best trading setups for you. If you are able to do this, then making profits on a daily basis becomes much easier.

Let’s not forget that there are also many awesome tools at your disposal, such as the UPSI or Ultimate Profit Scalping Indicator. This is an awesome tool that can provide you with simple buy end sell signals that you can then act on.


For more trading tips, strategies, methods, and everything in between, check out Andrew’s Trading Channel. Here you will find the world’s best stock market trading school, a trusted day trading school, state of the art indicators and trading tools, Forex and crypto signals groups, and more! 

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