Trading TheStrat / Rob Smith's Method

Welcome. This Thread is designed specifically for traders who are trading or want to learn #TheStrat .
Other method traders are welcome to find another Thread.
We typically will not use indicators. Although moving averages are ok.

Loooooooou!!!!! What is the Straaaaaaaaaat???

Uses prior printed candles and 3 candle patterns to guide you in analyzing and initiating trades.
There is a good, short video on YouTube :
The STRAT Method - Beginner Tutorial

Feb08 Daily DOW US30

Example:



> wait for New York 9:30am Chicago 8:30am



...

A basic principle is Full Time Frame Continuity. FTFC
Determine the direction of the current trend by analyzing higher time frame candles. i.e. the M W and D Time Frames are moving in the same direction.

Hey,, Good to see you here ! I assume that the 3 candle upper wick is being covered up by the number 3 .. just doesn't present as a 3 candle.

WooW!! you have your own thread now.

Greetings ... good to hear from you.
Sonicvista12 will be partnering here as well

Hi Lou and all who come here. Lou and I connected recently in Islandfx911's excellent thread 'No Indicators Trading System' thread, and we started talking about 'The Strat' method devised by Rob Smith, which we share a common interest in.
I've included one of The Strat's Cheat Sheets, which does not mean a short cut to being able to trade the method, but just a visual guide to how the basics are notated and work.
We are committed to keeping this thread about The Strat, not other methods. There are thousands of threads out there, but if you like the concept of The Strat, stick around and join in!
More to follow as time permits.

Just as a starter, here is GU Daily with some of The Strat numbers that I put on it, for familiarizing yourself with.
I highly recommend watching videos that feature Rob Smith, for example:-







Take lots of notes, screenshots, andI hope you discover that Rob Smith has taken the complexities of price action and found a very simple and elegant way of trading it. He did favour equities and indicies, but from my research I believe it works well in forex also.

Cheers
MantisClaw

Oops I forgot the GU chart! [spot the newbie]

Following on from the Daily GU chart, have a look at the H4 2-1-2 Reversal. This is an example of the effectiveness of The Srat method. The TP could have been higher, but I was just aware of the power of the BRN at 1.2600 to stop further upward movement. Still, it was a good 2.6R.
MantisClaw

UJ H4. 2-1-2 Reversals. Profits in pips circled.

Good morning from South Australia...
Lou mentioned in one of our chats that he likes to use 00 and 50 lines on his charts, because the market makers (manipulators) use those BRNs (big round numbers) as part of their arsenal. I agree. Here is a NZDUSD H4 chart with the 00 & 50 lines on it, and also 50 pip rectangles which I've put around consolidation/accumulation/distribution areas. It's fascinating to see how predictable price action really is...
Most of the rectangles sit pretty evenly around the 00 & 50 levels, but can you spot the two that aren't? 50 pip ranges don't always happen between the BRNs...
MantisClaw

I have Rob's Strat course and it is a nice, simple method. His sudden death this past summer shook me.
He was a good dude.

Following on with the levels discussion, I attach a drawing tool for MT4 called Sweetspots. It draws 00 & 50 price levels on HTF charts, and on LTF charts different levels, closer together. But it's completely customizable for each timeframe. When you have the levels and colours as you prefer, save that as part of your chart template.
Here is how it looks on the Daily (I have my lines in Gainsborough colour, as I like all drawings to be subtle so that I keep my focus on the candlesticks).
MantisClaw

Here is how it looks on most of the available timeframes in its standard levels configuration, with the Gainsborough colour chosen.

NU FTFC (Full Timeframe Continuity) - up on all on M W D H4 charts. So I will be looking for buying opportunities this coming week.

GJ process on the DAILY from a few days ago.
This chart assumes that the Monthly and Weekly have been identified showing up moves ..for Full Time Frame Continuity
2 1 3 pattern has formed in three Daily bars. The following candle with the check mark is the bar that is to be traded the following day. The Actionable candle. Visualize that it is not yet printed on the chart.
Once the 2 1 3 pattern has formed, analyze it for placing Entry, Stop and Take Profit levels on the Actionable Candle.
Entry.. the Gold line placed on the right hand 3 candle of the 2 1 3 pattern in anticipation of the up movement of the Actionable Daily Candle (with the check mark) which has not yet begun . This is the candle that is going to be traded.
Stop ...the Magenta line..placement In this case at the top of the 1 candle . Note again that the Actionable candle (with the check mark ) has not yet started. It was interesting that the stop line coincided later with the low of the candle being traded.
Take Profit Level or partial profit the Aqua lines are levels as suggested by TheStrat method. Or they could be Add On levels.
The Aqua lines can also be used as levels for moving the Stop Loss as the trade progresses.

There is a complere set of strat indicators in tradingview if anyone interested, including one marking the candles with correct numbers and one telling you if your selected htf candles are aligned same direction