The 7-part setup-quality filter
Market context
Identify whether the market is trending, ranging, compressing or reacting around a key area. A setup should fit the environment instead of fighting it.
Level or area of interest
Mark why this location matters: structure, support/resistance, supply/demand, liquidity, prior reaction or another framework you can review later.
Clear invalidation
Before sizing, define the point where the idea is wrong. If invalidation is vague, the setup is not ready.
Risk and position size
Calculate risk from invalidation and stop distance. The trade should fit your pre-defined risk limits without widening stops emotionally.
Entry trigger
Separate analysis from execution. A level can be interesting, but the entry needs a written trigger rule that can be reviewed after the trade.
Management plan
Plan stop movement, partial exits, invalidation changes or no-touch management before entry so the chart does not force rushed decisions.
Review evidence
Save screenshot, setup reason, risk, emotion and one lesson. A setup checklist becomes valuable when it creates reviewable evidence.