we frequently refer to #thestrat, so maybe it's useful a ๐งตabout this strategy/methodology ๐๐
1.
first of all... credit to
#thestrat father --> @RobInTheBlack
and the most important #thestrat source of knowledge --> @TradeSniperSara
ok, let's deep dive ๐
first of all... credit to
#thestrat father --> @RobInTheBlack
and the most important #thestrat source of knowledge --> @TradeSniperSara
ok, let's deep dive ๐
2.
When it come to price action, there are just three possible scenarios per each new bar in any chart:
--> scenario 1: inside bar
--> scenario 2: a bar with the high (or low) higher (lower) than the previous bar
--> scenario 3: outside bar
no others possibilities allowed!
When it come to price action, there are just three possible scenarios per each new bar in any chart:
--> scenario 1: inside bar
--> scenario 2: a bar with the high (or low) higher (lower) than the previous bar
--> scenario 3: outside bar
no others possibilities allowed!
3.
Combining the above universal scenarios, we get three different ways to reverse:
--> a 1 followed by a 2 in the opposite direction
--> a 2 followed by a 2 in the opposite direction
--> any scenario followed by a 3 that reverse the previous bar direction
Combining the above universal scenarios, we get three different ways to reverse:
--> a 1 followed by a 2 in the opposite direction
--> a 2 followed by a 2 in the opposite direction
--> any scenario followed by a 3 that reverse the previous bar direction
4.
We see these scenarios and reversal occurring over and over in any timeframes: them are fractals --> 1 min chart or 1 year chart it's the same!
We see these scenarios and reversal occurring over and over in any timeframes: them are fractals --> 1 min chart or 1 year chart it's the same!
5.
Starting from the above, can be inferred interesting patterns to trade, as the following:
--> 2down-2up: kind of bullish pullback
--> 2up-2down: kind of bearish pullback
Starting from the above, can be inferred interesting patterns to trade, as the following:
--> 2down-2up: kind of bullish pullback
--> 2up-2down: kind of bearish pullback
6.
A beautiful 2u-2d example in #spy, just some sessions ago ๐
A beautiful 2u-2d example in #spy, just some sessions ago ๐
7.
In these kind of patterns it's very clear the entry area and the target point, but the profitability depends on:
--> stop loss management: opposite extreme of trigger bar, or closest points identified on lower time frames
--> time frame alignment and consistency
In these kind of patterns it's very clear the entry area and the target point, but the profitability depends on:
--> stop loss management: opposite extreme of trigger bar, or closest points identified on lower time frames
--> time frame alignment and consistency
8.
Usually we combine these patterns with others features that increase the odds of positive outcomes, like:
--> a bullish/bearish close of trigger bar, as in attached tweet
--> a volume surge compared with previous bar
Usually we combine these patterns with others features that increase the odds of positive outcomes, like:
--> a bullish/bearish close of trigger bar, as in attached tweet
--> a volume surge compared with previous bar
9.
There is much more about #thestrat: concept like "broadening formation", "outside 50% rule" or others reverse patters... but are topics for another ๐งต
However, for any in-depth study of #thestrat, @TradeSniperSara is the benchmark (by the way...absolutely free)!
There is much more about #thestrat: concept like "broadening formation", "outside 50% rule" or others reverse patters... but are topics for another ๐งต
However, for any in-depth study of #thestrat, @TradeSniperSara is the benchmark (by the way...absolutely free)!
Loading suggestions...