Setup Price

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Dictionary Says

Definition of 'Setup Price'

A price level predetermined as the point of entry into a specific security, stock, or currency. Once the setup price is broken the trader will enter the position determined by the setup. This could include shorting a stock because they think the price will drop or going long because they expect an upward movement.
Investopedia Says

Investopedia explains 'Setup Price'

The setup price can be determined based on technical or fundamental factors as well as personal opinion on the part of the trader. Usually reaching the setup price is not enough to make a move. Generally traders wait for a significant break to confirm the trend will continue.

For example, if you’re looking for the price of a stock to go above $25 before buying, the setup price is $25. It might be better for the price to exceed $25.05 instead of purchasing as soon as $25 is reached. Timing will depend on volume, volatility and many other factors affecting price movements.
Search results for

'Setup Price'

  • Forex: The Memory Of Price Strategy

    http://www.investopedia.com/articles/forex/08/memory-price.asp
    ... The memory of price setup is specifically designed to take advantage of these spike
    moves in currencies by carefully scaling into the trade in anticipation of ...

  • A Winning Memory-Of-Price Strategy Variation

    http://www.investopedia.com/articles/forex/08/memory-price-variation.asp
    ... The classic memory-of-price setup is designed to capitalize on spike moves in a
    currency by carefully scaling into the trade in anticipation of a reversal. ...

  • Using Double Tops And Double Bottoms In Currency Trading

    http://www.investopedia.com/articles/forex/05/PriceMemory.asp
    ... Here is how a fakeout double top setup might work: Once the price has exceeded the
    prior swing high, do nothing until price shows a sign of weakness with a red ...

  • Stop Hunting With The Big Forex Players

    http://www.investopedia.com/articles/forex/06/StopHunting.asp
    ... Therefore, in the case of long setup, if the price in the EUR/USD was climbing toward
    the 1.2500 level, the trader would go long the pair with two units as ...

  • The "Turn To The Carry" Trade

    http://www.investopedia.com/articles/forex/08/turn-to-carry.asp
    ... dipping slightly. This price action happens often in this setup as pairs
    try to work off temporary overbought conditions. Although ...

  • Uncover Forex Profits With The Turn Trade

    http://www.investopedia.com/articles/forex/08/turn-trade.asp
    ... Rules for the Long Trade: On the daily setup, place a 20-period SMA and make sure
    that the price is above the moving average on a closing basis. ...

  • Using Elliott Wave To Trade Forex Markets

    http://www.investopedia.com/articles/forex/10/elliott-wave-trade-forex.asp
    ... Short Setup Confirmation: Once a wave 3 below the price bar changes to a wave 4
    marked above the price bar we will then assess the following indicators to ...

  • The Linear Regression Of Time and Price

    http://www.investopedia.com/articles/trading/09/linear-regression-time-price.asp
    ... setup is easily traded by using four points on the chart, as outlined in Figure
    2. No.1 is the entry point. This only becomes an entry point when the price has ...

  • Find Forex Profit With The RSI Rollercoaster

    http://www.investopedia.com/articles/forex/08/rsi-rollercoaster.asp
    ... This setup is designed to catch major turns in price action and it works best in
    range-bound markets that consistently move from overbought to oversold states. ...

  • "Do The Right Thing" For Trade Breakouts

    http://www.investopedia.com/articles/forex/08/CCI.asp
    ... CCI can put you on the right side of a trade when many others are trying to fade
    the price action. However, this setup only works if you apply it along with ...

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