A Buy Setup occurs when there are 9 consecutive closes, each one lower than the close four bars earlier.
A Sell Setup occurs when there are 9 consecutive closes, each one higher than the close four bars earlier.

——————

Setups can be classified as either “Perfected” or “Imperfected.”

A Setup is considered Perfected when the 9th bar is completed and either bar 6 or bar 7 (or both) is exceeded. This indicates a stronger confirmation of potential price exhaustion.

The point of perfection is typically marked with a small red or green arrow on the chart, signaling the setup's readiness for a possible reversal.

——————