Fundamentals of Swing Trading with the Strat - Broadening Formations & Combo (Tensho Pt II)

Sep 18, 2024

Lecture on Swing Trading with the Strat

Introduction

  • Discussion on swing trading using the Strat.
  • Mention of personal strategies for handling stop losses.
  • Emphasis on cutting losers quickly as per Strat's principles.
  • Strategy involves re-entering trades for better opportunities.
  • Covered strategies suitable for month-out swing trades.

Stop Loss Strategies

  • Not one-size-fits-all; varies by individual.
  • Early stop outs are part of the strategy.
  • Stops are typically set either at entry or at a larger time frame.
  • Daily vs. weekly stop loss strategies discussed.

Swing Trading Overview

  • Presenting Strat beginner series (parts 1 & 2).
  • Focus on universal truths: time frame continuity, broadening formations, actionable signals.
  • Discussion on Strat scenarios involving candlesticks (ones, twos, threes).

Candlestick Anatomy

  • Importance of understanding candlestick structure.
  • Candlesticks tell a story; provide insights into market actions.
  • Different types of candlestick formations: inside bars, hammers, shooters.

Strat Combinations

  • Various combinations discussed, including two-one-twos, two-twos, three-one-twos, and more.
  • Emphasis placed on predominant scenarios like reversals and continuations.

Practical Applications

  • Demonstration using past trades, e.g., Nvidia.
  • Discussion includes setups, entries, and exits for trades.
  • Real-world application using trading view to demonstrate principles.

Tools and Resources

  • Recommended following Rob Smith and other Strat-related resources.
  • Use of the Strat assistant indicator for ease in identifying setups.

Advanced Topics

  • Broader concepts of time frame continuity, broadening formations, and actionable signals.
  • Combining these concepts can lead to highly probable trades.

Q&A and Discussion

  • Open floor for questions on broader setups, stop losses, time frame continuity.
  • Encouragement to pick specific Strat combos to focus on initially.

Conclusion

  • Wrap-up with encouragement to seek further classes for deeper understanding.

These notes summarize the key points and structure of the presentation on swing trading using the Strat. The detailed examples and strategic insights aim to provide a foundational understanding for applying the discussed concepts in real trading scenarios.