If at first you don't succeed, try, try again.
Strat's PASR Long Term, Stress Free Trading
"wouldnt the blue dotted line be considered resistance therefore rendering the trade invalid" if it wouldnt be classed as resistance. please tell me why. if it is classed as resistance and under PASR rules, invalidates the trade. then why is Blackeagles example of a PASR trade correct..... {image}
Left corner: Blackeagle, a citizen of the old thread
Right corner: Alesiosc, the newcomer on the new thread and a citizen of Manchester
Attached a screenshot of both of your examples and an explanation what I see in both trades. Take it with a grain of salt.
Accept the risk!
- #11,326
- Apr 12, 2019 4:45am Apr 12, 2019 4:45am
- Joined Jan 2014 | Status: Less is more ... | 9,059 Posts
Fix up, trade sharp ...
- #11,328
- Edited 5:53am Apr 12, 2019 5:14am | Edited 5:53am
M1 Bootcamp
Example: Basic PASR Trade in the direction of the trend
Big Boss (M15)
Price on Big Boss is in an uptrend. Let us look at the candle at 10:30. It changes the primary trend to up. Price is supported by Strat Shadow and rejected support @1.128 massively.
Boss (M5)
Dropping down to the Boss and moving our line to 10:45 where the Big Boss candle closes doesn't give us a valid PASR set up. The primary trend on the Boss is now down. But look at the candle at 10:55. A bullish engulfing, showing a nice tail into the dynamic support of the Strat Shadow top. Big Boss and Boss are now aligned. But PRICE closes at my next SR @1.12888. Depending on how someone draws the SR lines this could already be a set up to go long. Depends on each individual trader.
Worker (M1)
At 11.00 our set up candle closes on the Boss. I have moved the red line therefore on the Worker. The next candle closes as a bullish engulfing, supported by the Strat Shadow and closing above my SR @1.12888. All three Timeframes are aligned. All Timeframes have price above the Strat Shadow. A lot of confluence across all three timeframes.
Now we need to check if there is at least a 1:1 Reward Risk Ratio possible.
A conservative entry below the swing low would give you 4 Pips SL for a 5.2 Pips Reward (1.3R) at the next SR @1.12947. An aggressive entry with your SL just below the set up candle would give you a 1.8 SL (2.8R).
And then: manage the trade well BUT only to the next SR line, take profit, really. That is crucial. With the time you will get a feeling when a trade won't work - all because you see what PRICE is doing. Sometimes you get hit direcly, but that happens. Other times the trade won't take off and then it is your decision to cut it or to leave your cash at risk. There is a fine line between Fear and Greed. I am still not at that level, but I am experiencing it every day and getting better.
Example: Basic PASR Trade in the direction of the trend
Big Boss (M15)
Price on Big Boss is in an uptrend. Let us look at the candle at 10:30. It changes the primary trend to up. Price is supported by Strat Shadow and rejected support @1.128 massively.
Boss (M5)
Dropping down to the Boss and moving our line to 10:45 where the Big Boss candle closes doesn't give us a valid PASR set up. The primary trend on the Boss is now down. But look at the candle at 10:55. A bullish engulfing, showing a nice tail into the dynamic support of the Strat Shadow top. Big Boss and Boss are now aligned. But PRICE closes at my next SR @1.12888. Depending on how someone draws the SR lines this could already be a set up to go long. Depends on each individual trader.
Worker (M1)
At 11.00 our set up candle closes on the Boss. I have moved the red line therefore on the Worker. The next candle closes as a bullish engulfing, supported by the Strat Shadow and closing above my SR @1.12888. All three Timeframes are aligned. All Timeframes have price above the Strat Shadow. A lot of confluence across all three timeframes.
Now we need to check if there is at least a 1:1 Reward Risk Ratio possible.
A conservative entry below the swing low would give you 4 Pips SL for a 5.2 Pips Reward (1.3R) at the next SR @1.12947. An aggressive entry with your SL just below the set up candle would give you a 1.8 SL (2.8R).
And then: manage the trade well BUT only to the next SR line, take profit, really. That is crucial. With the time you will get a feeling when a trade won't work - all because you see what PRICE is doing. Sometimes you get hit direcly, but that happens. Other times the trade won't take off and then it is your decision to cut it or to leave your cash at risk. There is a fine line between Fear and Greed. I am still not at that level, but I am experiencing it every day and getting better.
Accept the risk!
