Reading SetupVerdict Verdicts: LONG, SHORT, WAIT and NO TRADE Explained
SetupVerdict turns ten indicators and five checks into one verdict. This lesson explains what each verdict means, why the engine sometimes refuses to give a trade, and what to do next in every case.
Key takeaways
- Five checks run in a fixed order; a failed safety check can never be outvoted by a high score.
- LONG / SHORT = every check passes. EARLY = everything but momentum. WAIT = good market, wrong moment. NO TRADE = no usable trend.
- The setup score shows how many conditions line up — it is not a chance of winning.
- Always look at the live-price check before acting.
The five checks, in order
- Direction — EMA 50/200 and Supertrend. Do they agree on up or down?
- Trend strength — ADX. Is there a real trend (about 20 or higher)?
- Location — VWAP, Bollinger Bands and pivot levels. Is the price at a sensible place to enter, with room to the target?
- Risk — ATR-based Stop Loss. Is the stop wide enough to survive noise and fees, with at least 1.5:1 reward?
- Momentum — EMA 9/21, RSI and MACD. Is the short-term push with the trend?
All verdicts are calculated on the last closed candle of 4H or 1D, from Binance Spot data.
LONG and SHORT
Every check passes. You get an Entry (the candle close), a Stop Loss beyond the recent swing and a Take Profit at the next pivot level, 1.5R to 3R away (2R if no level lies ahead).
What to do: check the live price (below), size the position with the calculator, and decide whether the trade fits your plan.
EARLY LONG / EARLY SHORT
Direction, strength, location and risk all pass, but momentum is split — it is not confirming yet. The setup may be forming.
What to do: treat it as higher risk. Wait for a confirmed LONG/SHORT at a later close, or use a smaller size.
WAIT — good market, wrong moment
The trend is there, but something about the timing or the math is not right. The reason is always shown. The most common ones:
| Reason | What it means | What to watch for |
|---|---|---|
| Extended | Price is more than about 2.2× ATR from VWAP — chasing it means a poor stop and small reward. | A pullback toward VWAP. |
| Level too close | The next pivot level is less than 1.5R away — not enough room. | A break above/below that level, or a better entry. |
| Stop too tight | The stop would be under 1% away — fees would eat too much of the risk. | Try the 1D view, or wait for more volatility. |
| Momentum against the trend | Short-term push is going the other way. | Momentum turning back with the trend. |
On WAIT, levels are labelled “Ref.” — they are for reference only, not an active setup.
NO TRADE — no usable trend
Either the direction indicators disagree (one says up, another down), or ADX shows the market is ranging. Trend setups in those conditions fail far more often. Levels are hidden.
What to do: nothing on this pair for now. Use the scanner to find pairs where conditions do line up.
The setup score (0–100)
The score and its grade (A+, A, B…) show how many conditions line up and how strongly. It helps you compare setups — for example two LONGs found by the scanner. It is not a probability of winning: a score of 80 does not mean an 80% chance of profit. And because the checks run in order, a high score can never turn a failed check into a trade.
The live-price check
A setup is computed on the candle close, but the market keeps moving. Under every active setup SetupVerdict compares the levels with the live price:
- Still within the rules — the reward-to-risk from the live price is still at least 1.5:1. You can enter at the live price with the same Stop Loss and Take Profit.
- Price moved — the remaining room is below 1.5:1. Better entry: near the original Entry.
- Already played out — the price has passed the Take Profit. Do not enter.
- Invalidated — the price has passed the Stop Loss. Do not enter.
If the Stop Loss is unusually wide (more than 15% away), you also get a warning to use the Position size calculator, so a stop-out costs only 1–2% of your account (how position sizing works).
4H and 1D side by side
Pro shows the verdict on both timeframes. When 4H and 1D point the same way, the setup sits inside the bigger trend. When they disagree, be more careful — the 4H move may be a pullback within an opposite daily trend.
Want the step-by-step version?
The SetupVerdict guide walks through the screen with an example, and How to trade the 4-hour chart explains the same checklist if you want to apply it by hand.
Put the rules on autopilot
SetupVerdict checks trend, momentum, location, trend strength and risk on 4H and 1D candles, then gives you one verdict with Entry, Stop Loss, Take Profit and a position-size calculator. The free tool needs only a free account — no card required.
Educational content only — not financial advice. Crypto-assets are volatile and you can lose money, including all of it. Examples are illustrative and use round numbers; real results depend on prices, fees and your own decisions.