Thursday, November 16th, 2017

In option trading strategy, what does “Setup” and “Confirmation” means?

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    One Response to “In option trading strategy, what does “Setup” and “Confirmation” means?”
    1. Alex says:

      “Setup” and “confirmation” are not specific to options, they are used in trading any instrument. A “setup” refers to something that a trader looks for when he/she wishes to make a trade. For example, if one uses technical patterns to make trades then a “setup” may be a double-top pattern, and the “confirmation” is some signal that confirms the “setup” as valid. Again, going back to a double-top formation, a break below the support of the double-top is a confirmation of the pattern.

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