Conviction SetUps

Conviction SetUps are what active investors and traders are looking for. In a sea of complex market conditions they present high probability entry and exit opportunities to deliver above par returns using technical analysis.

What is Technical Analysis (TA)?

In financial markets technical analysis a methodology used for forecasting the direction of prices through the study of past market data. Charts are a simple graphic representation of a series of prices over time. Technicians seek to identify price patterns/behaviour and market trends in financial markets and trade upon these findings.

Technical analysts also use a wide variety of market indicators to help assess whether an asset is trending, its direction & whether a change in direction may be imminent. There are many techniques employed in technical analysis and it can become an overwhelming and often overcomplicated exercise.

Mella has developed her own methodology drawing on her over 10+ years of technical charting experience. Her approach incorporates her KISS technique (Keep It Simply Stupid) which focuses on what’s relevant and what works. Many traders struggle translating entering a trade based on TA. Where do you enter, where is your stop, what is your risk?  Mella’s approach is easily followed through her Conviction Set-ups based on her KISS methodology. She is taking the stress out of technical analysis:

“Many technicians overcomplicate charts using far too many tools. I’ve found over the years that the simple approach is best not only from a viewing charting perspective but also from a trader’s perspective. If you understand how a KISS approach works then this is much easier translated into your conviction trade process. My aim is to help show traders that they don’t need complex charting programs or training and that actually KISS is a very easy method to learn and follow. Patience is also a much needed critical psychological tool when identifying a trade set up. One must WAIT for the set up to approach its buy or sell zones and of course use highly disciplined risk management. These simple combined tools will give any trader a great edge in these ever challenging markets”.

Mella’s primary role at NorthmanTrader is to identify these high Conviction SetUps and outline buy and sell zones with risk profiles that indicate when a SetUp is technically valid and when it becomes invalid.

Identifying these Set-Ups across asset classes requires sharp technical analysis skills and a keen understanding of market behavior, as well as a developed sense to read the tape. Mella is one of the best in the business and brings an unmatched level of patience to wait for set-ups to emerge making her relaxed approach easy to follow.

Observing Mella outlining and discussing these SetUps not only gives seasoned investors, traders and funds an edge in their own strategy, but also serves as a great educational tool for everyone interested in sharpening their analytical market skills.

In this section we outline some specific examples of Conviction Set-Ups as they have been presented in Mella’s private feed, not only from the point of identification, but specifically how she walks through a given set-up as it progresses and evolves with associated scaling opportunities as risk applied is reduced until finally a set-up is closed and no longer applies.

Conviction SetUps can occur on a variety of asset classes.

Below is an example identifying a conviction sell on the Russell 2000 which progressed into a conviction buy:

The example illustrated above is the output of her years of experience reading markets and analyzing structures within the systemic process she has developed.

Conviction SetUps have the potential to deliver significant alpha. And that is indeed what active investors and traders are looking for.

To view her updated closed SetUps please visit the KISS SetUp section of the website.

To sign up for the SetUpStream as part of Premium Markets please visit Services.

All content is provided as information only and should not be taken as investment or trading advice. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. For further details please refer to the disclaimer.