What does "setup forming" mean? Should I buy it?

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Accepted Answer

The three candles are in and the trigger is set at candle 2's high, but nothing is bought yet. It becomes a call only when the stock is over the trigger at 3:45 PM Eastern (or closes over it). Don't buy it early. What it is A quiet post, once per setup, the evening its candle 3 closes. It names the stock, the trigger (candle 2's high), the stop the trade would have and the target. The same list is Setups forming on your 1-2-3 Candle Alerts page, newest first. When it becomes a call Only when the stock is over the trigger at 3:45 PM Eastern: then the 1-2-3 Buy alert posts with its entry, stop, target and options trade, so you can buy before the close. A wick above it earlier in the day is not enough. One that gets over it only in the last minutes and closes there posts after the close, as a buy at the next open. Some never trigger A newer 1-2-3 on the same stock can replace it and move the trigger. Price falls away: a setup leaves the list once it would be stopped the day it triggered. So use it to see a call coming, not to buy early: the tested trade starts at 3:45 PM, over the line.