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Strat's PASR Long Term, Stress Free Trading 12554 replies

Another way to stress free, mechanic long term trading 29 replies

Short Term / Medium Term / Long Term? 3 replies

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Strat's Long Term Stress Free Trading

Quoting Alesiosc
{quote} You have definitely got your PM's deactivated. I've looked around and also checked on the FF user guide but cant find where to activate it. I have mine activated so maybe I am not seeing what you see on your screen. {image}
Already enable my PM and just sent you my email address.
Quoting AliJ.
{quote} Dears Corinna&Alesiosc {image}
AliJ, thank you for the guidance. Managed to enable my PM.

Cheers,
Corinna
Quoting Suran
{quote} Why he took 99.25 but not 99.00. Switch to weekly line chart and draw a line at 99.25. then scroll back. see what it tells you..u ll see I am not exactly sure what he meaned by closed below 99.25 weekly. Because I do not know if that candle already closed or not (when he posted). need to see his chart (at that time ). May be he is saying that daily candle closed below the weekly support 99.25. or may be not... However, after April 14 candle closed then we could say that it closed below 99.25 (on daily chart). just...

Thanks for the response Suran.
Quoting dashurry
guys i hope you can help me clarify some of my concerns over this process taken by Strat. {image} This are my S/R lines i think are relevant for the Weekly TF {image} Im having difficulties with the following: -Strat says on page 97 {quote} what does he mean with below Weekly? Why does it take 99.25 and not straight forward 99? Thanks in advance
The Boss candle April 5th had a low of 99.31. The following week Boss candle CLOSED at 99.24, therefore the Boss swing high is confirmed.
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Quoting TerryDawe
{quote} The Boss candle April 5th had a low of 99.31. The following week Boss candle CLOSED at 99.24, therefore the Boss swing high is confirmed. {image}
Thanks Terry, very clear now.
Quoting Corinna
{quote} AliJ, thank you for the guidance. Managed to enable my PM. Cheers, Corinna
Hi Corinna. Just checking if you have been receiving my PM's as I haven't had a response from you.

Cheers
Cameron
If at first you don't succeed, try, try again.
Yes Cameron, I had received your email and you had reply to my question on 30 April. Did you send me another PM? I presumed it is in the form of email.

Regards
Corinna
Thanks Z and Nicola - you are both correct so no need to fall out over it.

What has happened is that Steve Nison introduced the strict translation from Japanese trading to Western traders and from there specialist Western candlestick traders evolved with situations more akin to our type of trading.

What is important however is learning the basic candles and candle formations and then seeing and understanding them by practicing on thousands of charts. When you see them in action, you build up your own understanding of them and have a better idea what to expect next.

So, you can use the strict definition as introduced by Steve Nison or the "looser" variations as you practice on them.

Me being a simple person, an OB is where it is totally outside the previous bar, an IB is where it is totally inside the previous bar and an EB is where the body only engulfs the previous candles body. I don't use anything else including candle patterns or formations.

I also take these with a "bucket of salt", in other words, they are not gospel, I don't expect price to react in a text book manner when I see these - I need these to prove themselves first - I need confirmation. That's why I mainly use them as "set up" bars.

Danny, while reading all you can is good, it can also be bad - there is no substitute for practicing on thousands of charts. Be careful of reading so much that when you see something on a chart you are so confused you don't know what to do.
My advice is to learn the basics - Hammer, Shooting Star then OBs and EBs and then IBs - but be careful with IBs.

As far as M5 being used to practice on - I strongly disagree - the technicals are so weak on that time frame that you will end up being confused and frustrated. A better idea is to f12 historical daily charts of as many pairs as your broker has.

Finally, remember that candlesticks are only one of our tools - they are not the "be all and end all" - they must be used in conjunction with all our other tools.

#4324
There is Light at the End of the Tunnel.
Dave,many people get swings wrong because they are not using CONFIRMED swings. Unless a swing is CONFIRMED it is not valid and is about as much use as a crack in a glass eye!

To answer your questions:

“”I see three possibilities for confirmation here;

1) Marked candle has a higher high and has closed lower than the previous bullish bar or,
2) Price breaks below the marked bar's low or,
3) Price breaks below the last bullish bar's low since the swing high””.

Unless my eyesight is failing me, Dave, your 1) statement is incorrect because (i) it is neither lower or (ii) closed lower than the prior bar.

At the end of that week that your marked candle closed, it was an UNCONFIRMED swing high.

For confirmation of a swing, the OPPOSITE end of the candle must be taken out (exceeded). So, for a CONFIRMED swing high, the highest candle must have its LOW taken out and Vicky Verka for a CONFIRMED swing low.

Therefore, your marked candle is CONFIRMED as a swing high the following week when it’s LOW is taken out.

See also attached examples

“”Should you wait until the swing high is confirmed on the weekly chart before you look for a shooting star or other entry candle on the daily chart?””

Remember that although the higher time frames determine the direction of the lower time frames,
they lag at turning points. (Dr. Joe )
Quote
Buy when prices are moving up. Buy each retrace/dip. Keep buying until the last retrace becomes a trend change which is the one trade you lose on.

Sell when prices are moving down. Sell each retrace/rally. Keep selling until the last retrace becomes a trend change which is the second trade you lose on.


This is because the lower time frames are faster and therefore respond faster.

If you do what you suggest above then you are trading the BOSS chart and not the Worker.

When you see a classic shooting star at resistance as you show in your EURAUD Worker chart with a bearish BOSS then, providing everything else is equal and you are not trading into an immediate area of strong support, you would place a sell order below the low of the Worker shooting star.

“”Would this SS be considered a bond candle because there had not been confirmation yet, therefore would have been a low probability trade? Or would this have appeared to be a likely winner at the time because it appeared near a resistance area and worth trying to get in before confirmation by the weekly?””

Maybe you need to read again what happened to my mate Bond – he thought he had pulled a gorgeous chick but when he got down to the nitty gritty, he found the meat and two veg – in other words, a “she male”. So, a Bond candle is something it is not and is trying to “fool” you.

It can be a correctly proportioned candle but nowhere near S&R or, it can be an incorrectly proportioned candle at S&R or any combination of both.

In your example, the shooting star is correctly proportioned, the open of the candle was at resistance, the close was not only below the prior candle but also within the body of the candle before that. The wick of the shooting star is also rejected by resistance. As if that wasn’t enough, the shooting star was also a BEOB! This was a trade to die for!

Don’t get confused with how to use the BOSS to trade the Worker. The BOSS gives us our direction and sentiment – the Worker gives us our timing. When you see the BOSS signaling an opportunity, start looking at the Worker for PASR to trade in the direction of the BOSS.

Also, don’t waste your time looking at Worker pairs when their BOSS is not signaling an opportunity – this is a sure way to losing trades.

If you are still confused, ask more questions – we’ll get you there!

#4483
There is Light at the End of the Tunnel.
Hi, AliJ, a timely reminder indeed. Thank you.

Cheers,
Corinna
Keep alive post.

Also

to fix PATIENCE and DISCIPLINE

Quoting strat
the first step is STOP demo trading.
Then, the next step is learn to recognise Hammers and Shooting Stars and Support and Resistance then we'll take it from there. When you can do that, then go back to demo trading BUT only trading Hammers and Shooting Stars - this is where we will build your PATIENCE and DISCIPLINE.
Quoting strat
Don't be in a rush to get in a trend, spend more time doing ATM trades because if done correctly, with a PLAN, these will build your confidence quicker and deeper.
atm trade or we called it basic PASR for now

Quoting strat
I know you want practice, but analysing like this where there isn't a trade, will only encourage you to "LOOK" for trades instead of "SEEING" trades. So rather than post like this, wait until you "SEE" a valid trade set up and then comment on that.
Until there is consistency on my trade, I'll do these first. And remember,

Quoting strat
What is one man's meat is another man's poison. You have to try ALL the options available to you and find the one that you are COMFORTABLE WITH.

The Hammer and the Shooting Star is what those on The Path of Learning should focus on - nothing else. Learn how to use these for entry and CLOSING OUT a running trade.
Quoting huatzhi
Keep alive post. Also to fix PATIENCE and DISCIPLINE {quote} {quote} atm trade or we called it basic PASR for now {quote} Until there is consistency on my trade, I'll do these first. And remember, {quote}
Hi, huazhi

Don't be in a rush to get in a trend, spend more time doing ATM trades because if done correctly, with a PLAN, these will build your confidence quicker and deeper.
https://www.forexfactory.com/showthr...43#post2762443

What is "ATM trades"?

thanks

Cj.cn
Don't Rush Things, Be PATIENT and Wait For the Best Trade Setup
Quoting Cj.cn
{quote} Hi, huazhi Don't be in a rush to get in a trend, spend more time doing ATM trades because if done correctly, with a PLAN, these will build your confidence quicker and deeper. https://www.forexfactory.com/showthr...43#post2762443 What is "ATM trades"? thanks Cj.cn
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Or in my understanding, basically Basic PASR, trading from one SR to another SR without trying to trade further swing/trend.
A good pattern to watch for on any time frame is the death cross. Example of a pretty good one on the EURAUD H1 at the end of the week.
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Quoting huatzhi
{quote} {image} Or in my understanding, basically Basic PASR, trading from one SR to another SR without trying to trade further swing/trend.
thanks for your reply.
Don't Rush Things, Be PATIENT and Wait For the Best Trade Setup
Quoting TerryDawe
A good pattern to watch for on any time frame is the death cross. Example of a pretty good one on the EURAUD H1 at the end of the week. {image}
Alright. I'll post on new thread the next time I found this pattern happening on Daily TF. (If I didn't that means I did not recognize it again)

Both the death cross and this one, is there a name for it?

Quoting Cj.cn
{quote} thanks for your reply.
Do you have a definition for your 'best trade setup'? Maybe Terry just provided one.
Quoting huatzhi
{quote} Alright. I'll post on new thread the next time I found this pattern happening on Daily TF. (If I didn't that means I did not recognize it again) Both the death cross and this one, is there a name for it? {quote} Do you have a definition for your 'best trade setup'? Maybe Terry just provided one.

As per what I searched and found..Death Cross means 50 crossing below 200. which might indicate major selloff. Next one is all the moving averages crossed and price retest the cross and failing.if it has good momentum and gives a good price bar then this might be a good indication for PRICE continuation in the original direction.at least to the next price level. just my thoughts.


P.S. if 50 cross upside to the 200 means Golden Cross.which is bull price pattern.
https://www.investopedia.com/terms/g/goldencross.asp

Suranga
Focus, Patience, Discipline, Determination and Perseverance
Quoting Suran
{quote} As per what I searched and found..Death Cross means 50 crossing below 200. which might indicate major selloff. Next one is all the moving averages crossed and price retest the cross and failing.if it has good momentum and gives a good price bar then this might be a good indication for PRICE continuation in the original direction.at least to the next price level. just my thoughts. P.S. if 50 cross upside to the 200 means Golden Cross.which is bull price pattern. https://www.investopedia.com/terms/g/goldencross.asp Suranga

Quoted from Steve Nison - The Ultmate Candlestick Bible:

"Another use of two moving averages is to monitor crossovers
between the short-term and longer-term moving averages. If the shorter term
moving average crosses the longer-term moving average, it could
be an early warning of a trend change. An example would be if a
shorter-term moving average crosses above a longer-term moving aver
age. This is a bullish signal.

In Japan, such a moving average crossover
is called a golden cross. Thus, if the three-day moving average crosses
above the nine-day moving average it is a golden cross.

A dead cross in Japan is the opposite. It is a bearish indication which occurs when the
shorter-term moving average crosses under the longer-term moving
average."

Please take note that we as Strat's PASR students primarily use the Strat Shadow consisting of the 20 and 72 EMA's along with the 200 EMA in our analysis so the quotation above should be read along those parameters as already pointed out by Terry and Suran above.

Regards
Pete
Just to keep the thread alive, here is a extract from my notes:

If you are already trading short:
Don’t even think about long unless you get a HL – just continue shorting LHs
Don’t even think about entering long until you get a confirmed HH

If you are already trading long:
Don’t even think about short unless you get a LL – just continue buying dips (HL)
Don’t even think about entering short until you get a confirmed LL

Happy learning and trading.
Corinna
Quoting Corinna
Just to keep the thread alive, here is a extract from my notes: If you are already trading short: Don’t even think about long unless you get a HL – just continue shorting LHs Don’t even think about entering long until you get a confirmed HH If you are already trading long: Don’t even think about short unless you get a LL – just continue buying dips (HL) Don’t even think about entering short until you get a confirmed LL Happy learning and trading. Corinna

Hi there,

Short and precise rules. One question though --- how to get confirmed HH or LL?
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