Strat's Long Term Stress Free Trading

Hi Blackeagle,

I am attaching 2 charts(eurusd and eurgbp) please let me know if my SR lines are correct. I have followed ur method by going to line charts and then to big boss and boss

ur feedback is appreciated

Amar

You can tell the market is slow this week – I’m reading all my emails and found this:

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Now that is an attention getting headline! Hopefully readers of this thread can see through the lies:


2009 hasn’t finished yet, so how can they make that statement?


The $127,912 means NOTHING – if they were a “Jacko – like” trader it represents LESS THAN 1 PIP!



The $ value needs qualifying with respect to pips or % growth – WE know that but naive virginal newbies don’t!


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As usual, for those who have not been entirely convinced or are just skeptical, they close with this:


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Then there are the charts. Look good eh? What they don’t tell you is that they don’t buy or sell on the first red or blue bar change – that is only your “set – up” bar – you place your orders above or below these for trigger on the next bar. In this case, some of their “winning” trades were losers BUT the newbies don’t know.


I have compared my strategies, methods and systems with each one of these charts (yes, I’ve got nothing better to do in this “dead” week), and every single one of them, even my MA system, outperforms these!


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i like this part of the presentation "Absolutely NO THINKING......" This is the essence of the product and its buyers

Now that we know how to recognize, identify and draw our SR lines, let’s make sure we know what to do with them.

Let’s use EURGBP BOSS as an example.

First and foremost, SR levels, although pin pointed from the BIG BOSS through to the BOSS, are not exact. (I can pin point SR levels with good accuracy on the Worker BUT, as Blackeagle rightly says, trading them is an entirely different story.)

The BIG BOSS and BOSS SR levels are identified levels where PRICE has a history of reacting to them.
Through the billions of trades that are made at these levels and especially with the antics of the big boys, these levels become wider and wider (in relative terms).
I like to think of these as “magnetic lines” which attract and repel just as the poles of a magnet would do. As such, around these SR levels, there is a “magnetic field” which creates an energy to on coming PRICES.

Some PRICES may be repelled on the exact line while others may be repelled earlier or later.

The point is, do not be rigid with your trades around these levels.

Let’s start at November 09, 2008.

We could have drawn this line exactly at the apex BUT, that does not satisfy the condition for what took place on June 14, 2009 and August 02, 2009. We could have drawn 3 lines for each condition but if you did that for every reaction, you would end up with a chart resembling a map of King’s Cross Station.
Instead, fine tune this level with the Worker, THEN, always be aware of the energy around this line meaning that PRICES, when NEARING the line, will come into contact with the “energy” and may be attracted or repelled sooner or later.

So walking through this from right to left:

PRICE is rejected (R) at the 0.8520 level. Next, PRICE is supported (S) by the energy level of 0.8790 (probably psycho 0.8800). On Feb 01, PRICE is again supported by the energy level and again on Feb 22nd and again on April 12.

On June 14 and August , PRICE was supported by the energy level surrounding 0.8520.
Now, PRICE is currently being supported for the second time at a minor level where PRICE was previously rejected.

What you should learn from this is that:

SR levels on BOSS and BIG BOSS are NOT exact

There are “energy” levels around these SR levels

PRICE will react to “energy levels” as well as SR levels

PRICE has a history of doing the same thing at a certain SR level

Do NOT be rigid in trading around SR levels

YOUR SR levels may NOT be the same as others (due to data feeds)
Finally, nothing in trading is exact or perfect and no matter the level of our PASR skills, PRICE will ALWAYS do what the Market wants (supply and demand).

Hi Blackeaglehttp://cdn.forexfactory.com/images/icons/icon7.gif

Great stuff, I would like to thank you too for this lesson, gold stuff. It means to confirm that what we learn from you, Strat, Alexandra and others is priceless.

Happy tradinghttp://cdn.forexfactory.com/images/icons/icon14.gif
Jideck

Now, taking the above BOSS eurgbp chart and making it into the Worker time frame, we already have our road map (SR levels) so let’s use it for our trading.


We are at the end of July 09 with only our road map on our charts.


At the end of July, early August we see that PRICES are held at 0.8475, which, if you think in terms of “energy levels”, is an energy level of 0.8520. This gives us a “feel good” that prices “should” go to the next SR level.


Aggressive traders would have acted on this while those following the teachings of this thread would wait for PA.
On August 18th, we were given full confidence with the successful re-test of 0.8520 as support and further positions would be taken on suitable PA.


Since our next SR level was not until psycho 0.8800, we had the confidence in PASR and our levels to hang on to our trades.


Now, see what happened around 0.8800. The “energy level” played around with PRICES (or, PRICES revolved around 0.8800) until the buyers had sufficient strength to push through that “energy”.


We had a minor SR level at 0.8940 which meant nothing to buyers.


On September 27, we had our first “warning” that all may not be well and to start protecting positions or taking profit.


We knew we had another minor SR level at psycho 0.9400 and this, coupled with our warning on September 27, alerted us to protect our remaining profits.


We were taken out and then given a lesson in gravity!


Where we were given our warning on September 27 is where we were given the opportunity to jump on the South bound train.

Enjoy the 1.7750 "energy level"!

When asked by Dr. Watson what the lemon painted door represented, Holmes said:

Elementary, my dear Watson!

(A Lemon Entry)

Yes, I'm bored!

While we should all know the values the 20 gives us, don't forget that the 50 has "her" moments too!

Marcus - had you mentioned this in your "report" to Alexandra, you may well have got a big fat "KISS"!

Thank you Blackeagle for your briliant SR drawing tutorial! And Strat for the example on EURGBP!

Strat may I continue with EURGBP?

It seems that the prevailing up trend could take on its course again. Looking at the Daily chart we can consider that today's rejection was near the big "energy" level.
Also the exact level where bounced was 0.883 which is also the top of the consolidation before taking off in September 15 - big demand. And it signaled big demand again today!

I will not take a long trade due to the supply DSRI being right above, also Daily SR level at 0.893 and price still under EMA 20.
Will wait more but thought to reason a bit with the market, especially in terms of supply & demand...

Have a good day people!

Thanks Strat and everyone for your kind words. It seems refreshing our memories re. how to draw SR lines was useful, but as Strat indicated, SR should be used with PA and the most important lesson from all the SR posts is that they are not pinpoints - thanks Strat for reminding that.

I have attached my USDJPY Boss chart so that you can compare. My data starts from 1998 and based on NY close and not from an MT4 server so we will have differences and that's normal. Don't forget to trade your own charts.

EURGBP - Our levels are different because my chart starts from 1999 where Euro was officially launched as electronic currency. Therefore, based on your data, your SR levels seem OK. I have different SR levels between 0.8650 and 0.9750 due to uncharted territory drawn from Worker.

EURUSD - Same problem here re. EUR data. One thing I noticed that you have an SR line at 1.2800ish whereas I have two SR lines at 1.2500 and 1.2900. I'd like to remind everyone that if you have two SR lines close to each other, do not put an SR line between them like averaging the two levels (like drawing a median line) (I am not saying Amar did that, just a reminder). Draw two separate SR lines and treat them as a thick energy zone as Strat explained in detail a few posts ago. And if they are close to each other, I suggest not to take any trades when price is between them.

This chart is a very good example of what I mean by putting two SR lines and see them as "energy levels" as Strat named. As you can see from the attached chart, 1.7750, as a single SR level is major (coming from 1993) but recently price started to respect 1.7600 level so we can use that level too and put another SR with a minor grade line.

"That was fantastic Holmes, but I have to ask; what was all that with the pie?" ...

Long day and now long posts!!! Thank you Blackeagle!!! Thank you Strat for promptly following up with step 2!!!! The market is finally moving tonight.

Ummm things look bearish. But that could change in 5 minutes

thank you SIR. very helpul

Thank you Blackeagle for the clear SR line drawing tutorial. A true gem. And Start for reminding us 1. PASR is the KING and has no Boss (well, being married I know that that should read QUEEN though mine has as much urge to rule with an ironfist as I do), and 2. lines are not specific areas but zones.

Strat, again your references to and comparisons with energy make perfect sense and really help clarify a lot of things.

I started redrawing my SR lines this morning and hey...that was the way I was doing them. I was having issues with how far to "fine tune" the Big Boss' lines and your chart by chart explanation helped me a lot with this.



I am still not even at Page 100 so feel free to hurl abuse like I bowed too deep but I will ask here and now:

Is drawing trend lines this straight-forward?

Sorry tried to edit last post but it won't let me for some reason.

...And how long to leave them (TL's) on a chart after they are broken? Should we be leaving past trend-lines on the chart to see if they may become DSRI's or loving them and leaving them as soon as they slip up?

I know the simple answer is to trade S to first R and back at this level, but I want to stick with the trend and I'm not sure how to confirm the trend without a TL.

So nice to have naked charts again!!! (though I keep one chart indicatored to the hilt and flick to it when my wife is watching because that makes me seem smarter).

Blackeagle,

Thanks for this invaluable information. I would like to know what chart you are using as I cannot get enough data on my chart to correctly draw the SR lines from the Big Boss?

I use IBFX chart.

Thanks

Do you mean Trendlines or DSRI lines? As Strat explained, they are not the same. If you haven't seen related posts, don't worry, you will. But to answer your question, yes it is as long as you take correct swing highs/lows or open/ close prices.

Only problem with trendlines/DSRI lines is that you can draw different TLs/DSRI lines for the life of a trend due to momentum changes and therefore they are less reliable compared to SR lines.