CHAPTER 8Using Setups to Jumpstart Your System
Speculation, in its truest sense, calls for anticipation.
Richard D. Wyckoff
Setups refer to conditions that must occur before other action is taken. They are an essential aspect of most entry and exit portions of any system. I’ve chosen to discuss them first because they form a foundation for the subsequent discussions on entry and exit techniques.
One of the key uses of setups could be to tell you when conditions are right to use your system. For example, in my “big picture” analysis in Chapter 6, I suggested that we are in a secular bear market that could last until 2020. However, that doesn’t mean that we won’t have very strong, profitable moves during which being in the stock market could ...