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Trading TheStrat / Rob Smith's Method

  • #21
  • Feb 11, 2024 4:11pm Feb 11, 2024 4:11pm
Quoting setite
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
Hmmm... do they go under a different name ? Nothing Strat listed on Oanda TradingView platform.
  • #22
  • Feb 11, 2024 4:26pm Feb 11, 2024 4:26pm
Quoting Lou
{quote} Hmmm... do they go under a different name ? Nothing Strat listed on Oanda TradingView platform.
Really? I didn't know that Tradingview indicators are broker specific.

Wow, good to know, but you're missing out IMHO.

Must be an American thing, I guess

I wish you a very healthy and prosperous trading week.

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  • #23
  • Feb 12, 2024 5:30am Feb 12, 2024 5:30am
Quoting sonicvista12
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 {image}
Thanks for sharing. Can I ask why you didn't take the earlier 2-1-2 setup (about 4 candles prior). Thanks!
  • #24
  • Edited 12:06pm Feb 12, 2024 10:52am | Edited 12:06pm
Took 28 pips on Nasdaq 5 minutes on the secondary move up.
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Thanks Lou for introducing another great Price Action Strategy.
  • #25
  • Feb 12, 2024 3:42pm Feb 12, 2024 3:42pm
Quoting bitgiggy
{quote} Thanks for sharing. Can I ask why you didn't take the earlier 2-1-2 setup (about 4 candles prior). Thanks!
hi bitgiggy

Thanks for your post and observation. You are right in that there is a 1 in the middle of what became a strong down impulse move. (In fact there's two, see new chart attached.) I tend not to look as closely at price action 'in the middle', but it is fair to say, at the time, it was at the base of the price action range.

A 1 is a Universal Truth, meaning it is an Inside Bar, showing that price movement has paused, has temporarily found Equilibrium, where distribution and accumulation is occurring, etc. And it is an undeniable truth that price will move out from the range of 1 into a 2 or a 3 (a 3 starts out as a 2 but then strongly reverses to become a 3).

So, in the case you observed, price did move up and out of the range of the previous 1. But then it reversed back into the range of 1, and down to the base of the range of 1. This is clearly a strong price movement, where sell orders outnumbered buy orders, at those prices and at that time.

So, what to do? Following the rules of engagement, we would have bought at the upper breakout of the 1 you mentioned. We could have taken profits at the previous candle open (marked). Not really enticing though as it was only 9 pips. The reality is more that as price reversed and started descending, we realize price is going against us and get out for a small loss, then wait. We can observe that the upper wick was all about the market manipulators picking up new sell orders.

The new H4 candle - price goes up a little, then drops through the lower range of the previous 1. We sell there. And whatever small loss we incurred on the previous long trade (max 15 pips) we more than make up for in the next 80 pip drop.

I hope that answers your question sufficiently? That's how I would deal with it, anyway. And that's one of the reasons I was attracted to The Strat, was that Rob Smith, over his decades long career, deeply understood price action and institutional orderflow, and has codified it into a simple set of 'Actionable Signals', Universal Truths, which are undeniable, and work. Whenever price starts going against our original premise, he always said "Get out early. You'll make more when it becomes clearer which way the institutions are taking price." And he provided a clear way of trading these types of price moves.

Just an observation about the first 1 I circled... that would have been a successful trade, because price never broke the high of that 1, so you only had your market order or stop order to sell filled. That short entry could have potentially earned you 90 pips, and you could have taken the second 1 short also, thus adding leveraging to the one downward price move.

I hope all this makes sense!
MantisClaw
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We don't see things as they are - we see things as we are.
  • #26
  • Feb 12, 2024 5:23pm Feb 12, 2024 5:23pm
Quoting Lou
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.
Hey Lou! Strat looks like it has 15 mini strategies/entries. I want to test on EURUSD. Which is the best one(s) to trade, and what timeframes or other symbols are good? (I can create a quick MT4 expert so we can backtest and share results)
  • #27
  • Feb 12, 2024 5:57pm Feb 12, 2024 5:57pm
Quoting Zennie
{quote} Hey Lou! Strat looks like it has 15 mini strategies/entries. I want to test on EURUSD. Which is the best one(s) to trade, and what timeframes or other symbols are good? (I can create a quick MT4 expert so we can backtest and share results)
Greetings Zennie. Welcome.
I am trading the Daily . Going forward.
I don't believe there is any best pair or patterns to trade. Do you have the Guide Sheet with In Force Patterns and Actionable Patterns? Try www.thestrat-indicators.com. That should be helpful. Not sure what you mean by symbols. You could also check the videos on YouTube there are very many... so look for titles that appeal to you.
  • #28
  • Feb 12, 2024 7:52pm Feb 12, 2024 7:52pm
Quoting Lou
{quote} Greetings Zennie. Welcome. I am trading the Daily . Going forward. I don't believe there is any best pair or patterns to trade. Do you have the Guide Sheet with In Force Patterns and Actionable Patterns? Try www.thestrat-indicators.com. That should be helpful. Not sure what you mean by symbols. You could also check the videos on YouTube there are very many... so look for titles that appeal to you.
Here is the Guide Sheet I mentioned above. When I went back to the link I noticed all the items there that are for sale. Skipping those.
This was free and shows Actionable patterns.
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  • #29
  • Feb 12, 2024 8:09pm Feb 12, 2024 8:09pm
Quoting Lou
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. {image}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...
I'm laughing as I study this pattern, 2-1-3 ??

I cannot find it on any of the published cheat sheets, complete guides, or Google images that I searched for.

Sure, there is 2-2, 2-1-1, 2-1-2, 2-2-2, with usual bearish & bullish parameters of course.

But I challenge you to show me the 2-1-3 published patterns, thanks.

That said, I did find one, not saying it doesn't work, but go ahead, cancel me

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  • #30
  • Feb 12, 2024 8:24pm Feb 12, 2024 8:24pm
Speaking of 2-1-2 pattern, here is a genuine setup.

Why is this thread here and not in Trading Systems, I wonder?

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  • #31
  • Feb 12, 2024 8:36pm Feb 12, 2024 8:36pm
This should be illegal, going to make too many pips!

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  • #32
  • Feb 12, 2024 8:51pm Feb 12, 2024 8:51pm
I swear, this was a 2-1-1 - Lou liked a post, so I'll keep going.

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  • #33
  • Feb 12, 2024 8:58pm Feb 12, 2024 8:58pm
This reminds me of police radio codes, we have a 2-2 robbery in progress at GBP by AUD

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  • #34
  • Feb 12, 2024 9:07pm Feb 12, 2024 9:07pm
Exactly the same as EURNZD posted, bad news for NZD apparently.

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  • #35
  • Feb 12, 2024 9:10pm Feb 12, 2024 9:10pm
Quoting Erebus
I swear, this was a 2-1-1 - Lou liked a post, so I'll keep going. {image}
I assume the candle you are referring to is the last one . If so, it appears that it is on the Daily. Since it is the active candle and has not closed, the ID number changed when it moved higher than the candle to it's left. When the current candle was below the candle to it's left it was a 1 but now it has moved to being a 2 . Seems misleading for a system to label the active candle as you have just discovered.
  • #36
  • Feb 12, 2024 9:13pm Feb 12, 2024 9:13pm
They are beating on the NZD like a rented mule!

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  • #37
  • Feb 12, 2024 9:32pm Feb 12, 2024 9:32pm
All I know is, somebody is getting richer!

How much is 6,000+ BTC worth anyway?

All the signs are there!

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  • #38
  • Feb 12, 2024 10:06pm Feb 12, 2024 10:06pm
Quoting Lou
{quote} I assume the candle you are referring to is the last one . If so, it appears that it is on the Daily. Since it is the active candle and has not closed, the ID number changed when it moved higher than the candle to it's left. When the current candle was below the candle to it's left it was a 1 but now it has moved to being a 2 . Seems misleading for a system to label the active candle as you have just discovered.
Yeah, I knew that, looking at it again, I guess the correct analysis is simply Bullish Inside Day.

Thanks.
It takes a lot for me to IGNORE you, but you can try.
  • #39
  • Feb 12, 2024 11:38pm Feb 12, 2024 11:38pm
Quoting sonicvista12
{quote} hi bitgiggy Thanks for your post and observation. You are right in that there is a 1 in the middle of what became a strong down impulse move. (In fact there's two, see new chart attached.) I tend not to look as closely at price action 'in the middle', but it is fair to say, at the time, it was at the base of the price action range. A 1 is a Universal Truth, meaning it is an Inside Bar, showing that price movement has paused, has temporarily found Equilibrium, where distribution and accumulation is occurring, etc. And it is an undeniable...
Thank you MantisClaw, this is really helpful. Please continue to post your trades in this thread, it is very helpful for people learning.
  • #40
  • Feb 12, 2024 11:44pm Feb 12, 2024 11:44pm
Quoting sonicvista12
{quote} hi bitgiggy Thanks for your post and observation. You are right in that there is a 1 in the middle of what became a strong down impulse move. (In fact there's two, see new chart attached.) I tend not to look as closely at price action 'in the middle', but it is fair to say, at the time, it was at the base of the price action range. A 1 is a Universal Truth, meaning it is an Inside Bar, showing that price movement has paused, has temporarily found Equilibrium, where distribution and accumulation is occurring, etc. And it is an undeniable...
By the way is that a FTFC indicator on your chart? It looks useful (and different to the one I found on the site you linked). Where did you get it from?
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