Strat's Long Term Stress Free Trading

Quoting strat

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Nicola is amazing - she was making pips by the bucket load using an indicator based strategy but for some reason decided to drop it in favour of what we do here. A true shining example of what can be done if you set your mind to it.

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Quoting AminAS

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I am guesssing the term "lurker" refers to someone who reads the thread, but hasn't added their input yet. I fall under that category. I actually just ran into this thread a couple of days ago, to give you an idea of where I am at.

Thanks Nicola for the post, it gives me a clear notion of what I should be doing right now. That would be to open a demo account with which to practice the many layers of long-term stress free trading risk-free. I have done that.

Now, I want to attempt to answer a few of the moving average questions Strat posted a couple hours ago. Please correct me when I'm wrong (keep in mind my exposure to this material lol).

AUD/USD: The 20 and the 50 have been right above price for about a month now and price is pushing up in between the two. Since it has been below and is now pushing up, maybe even through both, does this hint at a possible setup in the near future?

Your logic is right - you may just have written it wrong. Price is what we are concerned with and IT'S position relative to the 20 and 50 (not the other way around). The 20 is the BOSS over the 50 - it is far more powerful - many times it acts as resistance and support - go back and look at lots of charts. Always look at where price is relative to the 20. If price is above the 20 it is bullish - it does not necessarily mean you should buy at that point but that you should be looking for other signs to tell you to buy. The more often price goes above the 20 while it's direction is down, the greater the chance that it will eventually put in a low swing above it. Price is now boxed in between the 20 and 50 telling us to sit tight until it shows us it's future direction. Think of this "boxing" as the Bollinger Squeeze" as often times a substantial move evolves from it. The 20 and 50 are also coming closer together and going horizontal - another sign that a big move can be expected from this

GBP/JPY: Price has broken through the 20 and is now testing the 50. Time will tell if it holds. If we could get a nice hammer, or pin bar forming right on the 50 and closing, it would make for a great long trade targeting first the resistance at 135.60.

Your wish is my command! A hammer type bar is forming on my data BUT volume does not support a reversal (yet, there is still 6 hours to go before it closes). Correct analysis but step back to look at a slightly larger picture. The 20 had already crossed above the 50 telling us to expect higher prices and that a retrace is more likely than a trend change. That hammer type bar tested the 50% retrace and is closing well above the 38.2% retrace - a bullish sign in itself. If it can close with at least equal volume to the previous day then we have a good chance for a price reversal BUT how far? Look at what the BOSS is doing. If you draw a trend line across the bottom of the swing lows, then this could form the resistance to this up move.
Almost at 135.50 minor resistance now.

USD/CAD: The 20 is widening it's gap between it and the 50, and is right below price for near term support.
Spot on plus the fact that the 20 already crossed above the 50 telling us to expect higher prices

EUR/USD: Price has broken through the 20 and is moving towards the 50. I don't have a volume indicator on my platform, but if volume was higher than usual on the previous candle I would consider this very bullish.
Almost spot on. Bullish but not "very bullish". You got the volume part right but it was not higher so it could not support that move. An important piece you missed is that the 50 is at major resistance which in my mind, "doubles" the strength of the resistance and as you can see, it stopped that up move dead in it's tracks!

Clarifying question: On EUR/GBP, I believe there was a MA crossover on February 6th, not February 26th, if I am seeing things correctly. It also happened right when price bottomed out, just to further prove that MA's are the past, not the future.

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Quoting strat

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Gianni,

I woke up in bed this morning with a huge problem. The 10pm closing for the UK traders - I'm surprised about that and that it is so much of a problem for them.


No probs..but firstly we are AC milan so its a good thing and my Dad is Sicilian so watch out and my mummy is from Leicestershire which is why i went A.C not City but i am Tigers.Dont say im a glory boy as my school chums used to say as i was born in Nottinghamshire and schooled in Leicestershire and London but im Italy for my national team.My son is Arsenal...

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Quoting Baba G

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Whats your problem with pin bars?

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Quoting AminAS

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So I see there is a discrepancy between some of the traders here and Strat on when the daily bar closes and opens. For me, and some others, it is at 10 PM GMT, or 2 PM PST where I live. For Strat, I believe it is 12 AM EST. This means our daily candles will look entirely different, which unless I am wrong will make it harder to come to an agreement on actual price action.

What can I do to change when my platform opens and closes the daily bar so we can be on the same page?

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Quoting Siam

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Hi,

This is turning into an excellent thread.

The CHf/Jpy is nearing a major support level with confluence of the 20 MA lets see how price reacts around here.

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Quoting elitejets

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BabaG - I want to be a warrior like you. Count me in.

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Quoting Jeev121

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Hey Nic's

For a supposedly 'Newbie' you have managed to cram in a great deal of learning and reading in a short space of time...my hat goes off to you...well done...

Is there a download of the J16 thread somewhere as sometimes I prefer to read from printed material rather than at the screen...ie when I take my daughter to her Karate class or sitting up in bed burning the midnight oil...this would be a bit lighter in weight than my laptop...

Also do you have alink to Buffy's website too please...

I feel an army is building up here!...

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Quoting AstonDan

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I second that

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Quoting hansnl

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thanks for U strait forward reply Strat, luckely the system is only 10% and the psychology 90...

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Quoting strat

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Thought you wanted to be James Bond?

Rock n Roll,
Strat

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Quoting elitejets

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Here you go, files attached, this all helped me.

Great videos in the guest area here: http://www.james16group.us/

Every kind of price action links you could ever want ... http://www.trading-naked.com/PriceAction.htm

Buffy simple price action list - http://www.dacharts.com/articles/Buf...ice_action.php

Nic

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Quoting Honest Bill

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Hi, Strat,
I just realised you may have misunderstood me. I'm not looking for a tipping service. I meant showing some old closed trades.

You see, I'm a degreed mechanical engineer too and without my P&ID, the operating manual can be hard to follow!!

Okay, back to the books!! (teacher's pet!)

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Quoting AstonDan

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I don't trade USD/JPY but...
97.52 shows no significance on my charts other than resitance once back in November. Also, that trade would have been into the 20 EMA AND it would have been against the wider trend.

How did i do?

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Quoting kurt

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Hi strat, thanks for all the usefull info.

On the usdjpy the 20 and 50 BOSS are both pointed up.

Thanks again!

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Quoting reddog19

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Thought I'de have a go at some of Strat's questions.

GBPUSD
The 20 & 50 are both down and the gap between them is widening. This would suggest a continuation of the down move. However there is very major resistance at 1.37ish which may cause a bounce and retracement. If it gets through that level.... who knows... (my data doesn't go down that far)

GBPCHF
20 has just crossed the 50 in a downward direction after a retracement. Expect downward movement to major resistance at 1.51ish.

USDCAD
We are in a retracement of the overall down move and...

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Quoting AstonDan

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You could also argue that with price between Boss 20 and 50, it is 'boxed in' and unsure of direction.

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Quoting ajhill

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Oh dear, how very disappointing!

I wrote this to PROVOKE A REACTION and as a test to measure how you lot were doing.

So no reaction tells me:

Nobody is reading
Nobody is understanding
Nobody has progressed to the level I was hoping for
Nobody cares
You are just following like sheep

Although there are a few things wrong with my statement, there is a HUGE problem.

Now that I've brought it to your attention (again), who can spot it?

Strat,

on my feed (ODL) I can't see 97.52 as any sort of S/R

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