Strat's PASR Long Term, Stress Free Trading

Yes Darko, Got it. you targeting 110.40-50 cos there is a potential H4 support. But also figured this may become a corrective wave after a major move. so I will stay out of these. will stick to basic trades. Thanks a lot.

Suranga

Good morning all!

While reading the old thread today, I would like to share a gem from post #12,961 in which Strat posted:

...unlike other SR methods where they look for bounces off support and resistance, my PASR method does not care whether it bounces, stalls or slices through SR. Whatever PRICE does at SR is PRICE ACTION.

A good recent example is the Hanging Man on AUDNZD. It warns us of price reversal. Reading BEYOND the candle is the path to long-term stress free trading.

Thank you Strat!

AUDNZD

What about shorting this pair now

Boss : shooting star
Worker : BEEB

Just from the image you've posted that strikes me as counter trend. Looking at the worker it's already made a higher low, so I wouldn't take it, but you might have difference tolerance for risk.

I'm on the fence on this one.

Looking at the Boss chart, the "hammer" doesn't look like one due to its location of not being on a swing high/low.

On the worker, the BEEB does look tempting, but could just be people taking profit at the first resistance zone on the upswing.

Edit: upon closer inspection, the BEEB is still sitting on support

I am long this pair at the moment so for me the weekly shooting star and the daily BEEB is a signal to take profit.

We are in a strong up trend and the market is likely taking a breath and correcting this week, maybe for a few weeks. Nobody knows but a short is counter trend and if you consider it you should trade entries with a tight stop and monitor on the H4 in my opinion.

It certainly looks like a nice setup but I'd like to have seen it happen at a new swing high on the worker rather than in the middle of the range. We put in a higher low on the worker after a higher high so long term we're still on the way up I think.

Remember we're on a freight train. don't stand in front of it waving flags. It's probably pulling into the station to load up passengers before carrying on it's merry way (with me on board).

I'm undecided on this.
Historically it's reacted well to the 200MA. Last time however we shot through it.

One to watch this week and see what happens with price action. Certainly though an entry positioned below that weekly shooting star is a possibility.

Reading Strat's stages of trading made me reflect too. Here's my trading backstory.

I got into trading because I had some friends that were into it and I got 'the bug' from discussing with them. I then saw a course advertised by a 'guru' in Central London and was told that if I paid for the weekend course I'd get another place free(!!!) so I pooled cash with one of said friends and attended a 'masterclass' where the 'guru' proceeded to basically regurgitate the same tripe you can read in any trading book: i.e. 'Support & resistance' gets a mention and you spend hours looking at shiny squiggly lines and (this may give away who it was) you routinely stand up and give each other massages. A bit of pop culture wealth psychology and boom! I was a master trader.
Needless to say the only bit of decent advice in the entire course was to paper-trade first. I may have saved myself the course fee multiple times due to that alone because I blew up millions in demo accounts over the next couple of years as I proceeded to apply my 'mastery' to the markets.
Realising I knew absolutely sod-all, and since I'm a scientist by training and vocation, I sought to plug the gap with knowledge: I read every book I could lay my hands on and joined a forum - not this one! Still it didn't matter how much I knew: any and all demo accounts went into deep, black holes. All any of them ever talk about is entries entries entries: no risk management, stop loss or TP. In the forum I was drawn towards people who posted chart after chart of winning trades. One of them I will call 'insect' grabbed my attention and I promptly asked to be invited to his free chat room. Insect quickly laid out his strategy to us all, which appeared to be very simple SR trading with iron risk management. I took that bit of info on board as he continued to wow us with chart after chart of winning trades and little else. He then solicited funds from people to see if he could run up an investment fund from a few hundred quid to a few hundred thousand and we gladly paid him a couple of hundred each for shares in the fund.
He disappeared.
By this time I'd taken his risk management approach to heart and this stopped the freefall in my account - more a steady decline. Back to the drawing board, I noticed a guy posting a strategy based on James16: no squiggly lines, plot support&resistance, trade the reaction at those levels. This seemed way harder but also seemed to have much more ring of truth to it than what the gurus from squigglytown were selling. He also mentioned stuff like risk:reward and account management. All missing in a lot of the books and courses going around. I can imagine you could lose 1000 sales every time you mention the word 'risk' in a book.

Putting all this together, I realised most of technical analysis was hoodoo, price responded at certain levels and with my own eyes the only thing I could see that told me anything else was moving averages (i.e. 'current form' in footie terminology). I removed my squiggles and learned to 'see' the price. I also started the realise that all the squiggly trading books I owned were worth lots of money on Amazon, but could be found routinely dumped in charity shops and costing pennies. I made a lot of money buying and selling trading books in this way (arbitrage!!) but the point is clear: these books are expensive to people when they haven't read them and worthless to those who have. Hardly the Tao te Ching or the Tao of Pooh which you can re-read periodically and learn new things! Case closed: squiggles were out.
It was then that I started looking for a method to trade price action. This was about the time Strat started the 'old thread'. I lurked on a few forums and set upon a price action guru's thread. I shall call him Voldemort because he should not be named. Voldemort invited me to his private site for a nominal fee and for a while I felt I was learning his method. Then, based on experience with insect I started to second-guess Voldemort because I wasn't sure from his answers that he actually knew a great deal. Then he started acting like insect and soliciting funds from people. It was then that I ducked out. Later it turned out that Voldemort, like insect, took lots of people's money and disappeared and I had dodged a bullet.
To sum up: gurus were all money grabbing bastards and fakes and trading was a zero sum game based on hope. The only profits I'd ever made were by buying and selling books containing dubious 'strategies' that were poorly explained and designed to attract people to 'mentoring' programs. On the other hand, as with insect there were things to be learned and Voldemort was advocating a fairly simple, trend-following methodology, and using that alongside insect’s tight risk management put me perilously close to being able to trade. I traded live with several thousand pounds for almost a year and my account stayed in the red but was always about 1 good trade from breakeven, so I’ve been screwed by 3 ‘gurus’ at this point and have only really learned: paper trade first, risk management/stop placement and go with the trend. This knowledge was expensively assembled and unprofitably applied. About this time I needed to buy a place so I took the thousands out of the account and left it with a float of like a hundred or so and decided I’d be back one day. That was about 2009/10.
Then the usual RL stuff: marriage, house, kids, job, redundancy, job, redundancy, new job, offensive clients, another new job, arrogant dickhead boss, yet another new job.... decided I needed a strategy to get out of that because I'm 40 and I'm pretty sure I can't do it into my 60's. So last year I started looking at trading again. Same idea: price action, no squiggles. This time I knew what not to look for so I decided to think, rather than about what I knew, about who I knew who made money trading and weren’t full of shit:
One was a trader at a prop house who trades order flow only. No charts. Also an alcoholic, gambling, hooker-banging, coke addict who is difficult to be around for any length of time because of his abject hedonism. That plus the fact I knew nothing about his trading method and platform meant that his method wasn't an option.
Person 2 learnt from James 16 thread without paying any joining fees but I concluded he was probably a 'natural' since J16 is set out in a certain way - and I didn't want to pay anyone to join the private room because of experiences with Voldemort and insect.
Another guy had a system where he filtered price through about 8 indicators which I could not understand despite being a PhD scientist. No thanks.
I knew a few coders coded their own systems but I can’t do that either.
The other person was Elitejets who learned right here. Strat had just reopened the thread, so here I am!
I have zero desire to look on other threads, follow gurus, put indicators on my screen or do anything except read charts and learn how to deal with my little people: I’ve simply got all of that out of my system. For some reason my little people aren't impressed by my educational attainments or intellectual arguments I make and it is they who cause me to lose money, pay gurus, waste time on squiggles and all that other piffle. I want to learn about them and price action. Nothing else.

Thanks Strat.

Finally, what I have felt in my bones for years is finally made into a study:

https://www.thedailybeast.com/nearly...-bullshit-jobs

Yes I read the report when the book was published: I have a bulls**t job: I used to work in drug discovery and make and test compounds against diseases. Now I am a 'consultant' advising others on how to do it and earn double what I earned before.

Post #13,075

On trading the trend...

What you have to do is remember that when trading the Worker, we want the very latest instructions from the Boss...

In simple terms, you need to look at the Boss for its very latest instructions to the Worker then, using PASR, trade the Worker in accordance with the Boss’s latest instructions.

Dave, I know you and probably many others have struggled/are struggling with this but stick at it and I promise you, it WILL click. When it does click, you will wonder what all the fuss was about.

Edit: Post #13,287 for more on types of trend

BEEB/BUEB

Hi everyone. In post #5043 and following replies to that post, everyone said that that daily bar is BEEB, however, as per my understanding the EB (from Strats PASR document):



Which is not the case as I see it in post #5043. Yes, it is a strong bearish candle on the daily chart, but the open and close are not ENGULFING the previous candle. Can someone clarify what I'm missing, please?

i suggest you see the intention of the big boys behind the candles, no candle is perfect but this is a BEEB for all intents and purposes, i.e. a strong rejection of price at the resistance and a push that closes below the low of the previous candle

I just love it! Bravo!
Leave us some pips ^^
lol

Hi, Svolacius

Do you take a trade AUDCAD?

thanks

Today's trade on GBPUSD:

Big Boss: DBHLC/BEOB in March and April's candle.



Boss: Price also closed with a DBHLC/BEOB last Friday, below Strat Shadow.



Hence, I entered on the Boss chart and put a sell stop below Friday's candle. What is interesting is there is 'nothing' to the bottom of the chart (no Strat Shadow, no ema), which could indicate a strong swing to the downside.

Targeting support around 1.33RN.

Hi all,

Today is bank holiday for most of the Euro zone and CAD. Do you think it 's better to stay out ?

Hi Suran

It is a bit slower, I trade through Euro holidays (they are always on holiday anyway!!).

I don't trade UK and US holidays that is where the order flow is.

He he... Thanks BTS. Got the point

Hi, samsonwebdes

Do you enter SHORT at the 1st arrow? If so, why? I SEE there is a strong Resistance, but no PA Signal.
the same question about the Long enter at the 2nd arrow.

@Bestof 27,
For me, I would like wait a pull back to re-test the High and make a LH on Daily or H4 BEFOR enter short.

thanks

Maybe it's just my risk tolerance but I would trade this pair short only if today's candle CLOSES below that consolidation at support. Also, next support is too close for me to get a good R:R.