Exclusive Trading Setup

1024 683 Minimalist Trading – Best Trading Indicators for TradingView

It takes time and dedication to build a profitable trading setup with proven results.

But what if you could do that with a few, simple and non-subjective rules?

In this article, you will learn how to build and identify a trading setup with proven results.

The following chart from TradingView – USDJPY, 15min – has a trading opportunity which you are about to master and you’ll never miss again next time.

The good news?

Setups like this form every single day on any asset and on any timeframe!

Minimalist Trading – Exclusive Trading Setup – USDJPY chart

So, do you see the opportunity? 

Let us explain what you should be looking for.

Minimalist Trading – Exclusive Trading Setup – Impulse-consolidation-impulse(scheme)

The market always, always, ALWAYS moves by cycles of an impulse followed by a consolidation followed by another impulse.

As you can understand from the scheme above, impulses are the ones to exploit because they offer a significant price movement in a short period of time. 

On the contrary, consolidations should be avoided because price movements are limited and may take a long time.

Let’s now overlap the previous schema to our chart. 

Minimalist Trading – Exclusive Trading Setup – Impulse-consolidation-impulse(chart)

As you can see, the opportunity now starts to take shape so let’s dive into the setup!

First of all, we need the three trading indicators which make up the setup:

Actually, the setup is built with only two indicators (Breakout Pivotal Bars and Sentiment Index) with the third one (Levels and Zones) being used for extra confirmation.

Minimalist Trading – Exclusive Trading Setup – USDJPY chart with indicators and commented setup

The chart above shows the actual trading setup.

The rules are very simple and non-subjective. Here they are for a sell setup like the one in the chart above (for a buy setup the rules are simply the opposite).

Rule Indicator Condition
Rule 1 Breakout Pivotal Bars Price breaks-down consolidation on a red candle
Rule 2 Sentiment Index Bearish Sentiment breaks-down
Rule 3 Levels and Zones Price is below a resistance

All it takes are these three simple non-subjective rules.

Exactly the same setup repeats itself over and over, every single day, on any asset and timeframe.

For example, the following chart shows eight identical opportunities on BTCUSD 240m. 

Minimalist Trading – Exclusive Trading Setup – BTCUSD chart with indicators and commented setup

Let’s analyse the eight trading opportunities one by one. 

Setup #1 
Rule 1. Break-up of consolidation
Rule 2. Break-up of Bullish Sentiment
Rule 3. Above Support
=> GOOD OPPORTUNITY

Setup #2 

Rule 1. Break-up of consolidation
Rule 2. Break-up of Bullish Sentiment
Rule 3. Above Support
=> GOOD OPPORTUNITY

Setup #3 

Rule 1. Break-up of consolidation
Rule 2. Break-up of Bullish Sentiment
Rule 3. No Support nearby!
=> VALID OPPORTUNITY but pay attention

Setup #4 

Rule 1. Break-up of consolidation
Rule 2. Break-up of Bullish Sentiment
Rule 3. Resistance Above!
=> VALID OPPORTUNITY but pay attention

Setup #5 

Rule 1. Break-down of consolidation
Rule 2. Break-down of Bearish Sentiment
Rule 3. Below Resistance
=> GOOD OPPORTUNITY

Setup #6 

Rule 1. Break-down of consolidation
Rule 2. Break-down of Bearish Sentiment
Rule 3. Support is pretty far!
=> GOOD OPPORTUNITY

Setup #7 

Rule 1. Break-down of consolidation
Rule 2. Break-down of Bearish Sentiment
Rule 3. Support is pretty far!
=> GOOD OPPORTUNITY

Setup #8 

Rule 1. Break-down of consolidation
Rule 2. Break-down of Bearish Sentiment
Rule 3. Support is still pretty far!
=> GOOD OPPORTUNITY 

If you’re wondering what the blue candles mean, they represent indecision so either trend continuation or imminent trend reversal. Depending on your overall trading strategy you can decide to trade them or not. 

Now, if the examples above are not enough you can have a look at the several real-time trading ideas that we published on our TradingView profile (by the way, be sure to follow us on TradingView!).

Here’s a selection of those (once you open an idea scroll down to read the updates).

Trading Idea 1
Trading Idea 2
Trading Idea 3
Trading Idea 4
Trading Idea 5
Trading Idea 6
Trading Idea 7
Trading Idea 8
Trading Idea 9
Trading Idea 10

Let’s be honest, it could (rarely) happen that an opportunity will end up reversing. 

But that’s not all bad. 

In fact, if the price reverses, chances are it will continue impulsively in the same direction. 

See this trading idea on EURUSD – price reversed, offered an opposite opportunity and continued in the same direction.

So the vast majority of times this setup is very likely to go to target.

In the unfortunate occasion that the price reverses, it is then very likely to continue impulsively in that same direction!

Isn’t that great? 

The only thing left is that you put the Exclusive Trading Setup to work! 

Of course, always feel free to contact us should you have any question.