OK, so today we're going to be discussing the strat. Like I said before, this is not going to be the in-depth class that I would do. If you look in our education tab, Tensho has already done a structure class on the strat that goes through every single detail.
I highly advise you to check that out. Tensho is a very smart guy. So that is a dope class that he's already done.
So after this. If this is your first time even hearing about the strat or, you know, you being introduced to it tonight, I highly advise you to go check that out. But I will cover the basics and of what the strat is.
So what the strat is, is it was a strategy that was formulated by Rob Smith. He actually passed away this year. He got ill and passed away. But with the strat. Its basis is, is we have three scenarios, which I'm going to get into, and we also have three truths that we go by.
So one of the things that we look for with the strat is called broad informations. I'll show you guys what that is, how to draw them, and I'll also give you guys some homework if you've never drawn broad informations before so you can practice them. The other thing is time frame continuity, which I will also get into that. And then the third is our actionable signals. So what I want to start off with is actionable signals.
So if you look at my chart, this is your first time ever hearing about the strata, seeing the strata. You'll notice that I have these numbers on top of my of these candles. Right. Before I or not, I'll explain what they are first. So these are different scenarios.
So scenario number one, also called an inside bar. The reason it's called an inside bar is because it does not break the range, the high or the low of the previous candle. So if you look at this, this is the previous candle's high right here.
And then I'll just draw it. I'll just write that down for you. high and then this is the low of the previous candle okay so if you look at this candle which this probably wasn't the best example because it's hard to tell but um if you look at this example this bar right here the high did not break this high it stayed inside of it the low as you may not be able to tell because it's kind of hard to tell but this low did not break this low.
If you see a candle like this where it's really iffy and you can't tell, one thing you can do is if you look, if you follow my cursor, follow my cursor over here, you see this OHLC that stands for open, high, low, close. So if you hover over a candle, it'll give you the values of that candle. So if I hover over this candle, I can look at the OHLC.
And I can look at the L, which stands for low. So the low of this candle is 41.18. See that?
41.18. The low of the previous candle is 41.17. So we know that this low did not break this low. So it stayed inside.
It stayed inside the low and inside the high. If you guys have been in the group for a while, you will hear me preach, turn your magnet on, which is this tool right here. The reason I preach that so heavily is because if you don't turn this magnet on, right? And you just take this and you eyeball it.
Like, let's say I did that, right? This will tell you that it broke the low and you will get in this play thinking that it went too down, but it actually never broke the low. So meaning you should have never been in that play. Okay.
So I want you guys to always keep your magnet on. And what the magnet does is it allows these tools to snap. You see how I just got close to it and it just snapped to it.
It allows you to snap to it and it gives you the exact value. OK, so that is the scenario one. It stays inside the previous range.
And let's find another example. Check the chat because we have a question. Yes.
So same here. You see the one right there. which that's crazy.
It's like it's another close one. But as you can see, the high of this candle right here, and we'll mark it a different color. We'll mark this yellow just because it's already yellow. The high and the low of this candle, the high or the low of this candle did not break this previous candle's high or the previous candle's low.
Okay. So what these inside candles signify is consolidation. That means the bulls have no control or the bears, neither the bears have control.
It's just trading inside this range. OK, so if we went down to a smaller time frame, you will be able to see if I took these away. And actually, let's go to this one. So if we went down to a smaller time frame, you will be able to see that nobody took control. Yes, we're trending up for right here.
But the goal of the strat is to enter once it breaks the high or the low of the previous candle. So if it breaks neither, then you should not be in that trade. You're waiting for a break of the high. You're waiting for the break of a high or a low.
Does that make sense to everybody? Is anybody confused about that concept so far? Don't be afraid to speak up because I don't want to move on without you guys understanding. Let's see. OK, we've got some goods, got some goods.
Good, good, good. OK. So when you're looking at my chart, those inside candles are the ones.
Remember that. If you need to write that down, write that down. Inside is a one bar, which signifies consolidation. Check the chat one more time.
Yes, appreciate that, Tensha. I didn't even see you was in here. Yes. Any questions, please, please ask. This is a judgment-free zone.
This whole group is judgment-free. So if you're new. That's what we stand on. Nobody's going to make fun of you. Nobody's going to have anything to say.
No question is a stupid question. I'll answer any question you have that pertains to what I'm talking about. OK, so we have our one bars out of the way. So next we have our two bars. So what our two bars are, our two bars are directional bars.
And what that means is it broke the high or the low. So it picked the direction. So if we look at this example right here, we have a two down.
And actually, I apologize. I did not finish what I was supposed to be showing you guys. No, I'll come back to that. I'll come back to that.
Next is the two bar, which is a directional candle. So if you have a two down, that means that it broke the low of the previous candle. So that's what two down means. It broke the low of the previous candle. So we have a two down here.
That means it broke this low. It went lower than the previous candle. We have another two down right here.
This candle went lower than this candle. That makes that a two down. So it's pointing in the direction of down and vice versa. Right here, we have a two up. It broke the high of this candle and it went up.
Next candle, we have another two up. It broke the high of this previous candle right here, up, two up. Now, the color does not matter. It does not matter if it's green, it's red, or however you decide to color coach your candles. The only thing that matters is a two up.
broke broke the high of the previous candle and a two down broke the low of the previous candle okay does that make sense to everybody so far and i'm gonna keep stopping to make sure we're all on the same page okay So let's find one more example so we can really drill it in. So right here. You see we had a two down.
This is the high of the candle. We had a two up after the two down. Okay, this candle broke the high of this candle, making it a two up. You look at the next candle. This candle right here broke the high of this candle, making it a two up.
And these are called two-two continuations. When you have two up, two up, that is a continuation. It did the same thing twice. When you have a, if you look over here, we have a two down, two down.
That's a two, two continuation to the downside. That's a bearish two, two continuation. Okay.
And it can go two down, two down, two down for a very long time, depending on the stock, just like it can go two up, two up, two up for a very long time, depending on the stock. You're more reluctant to see. to a multiple series of two downs rather than two ups. Just because it's, let's say you have a company that's failing, right? Like let's look at, let's look at Peton.
So if you look at Peloton, you see how we have a lot of two downs. We have a lot of two ups over here. We have a lot of two downs. If we look in Peton's, Peloton's. history, they've been struggling for a while.
So Peloton, I believe, was as high as 200 something. Let's see. Yeah, Peloton was once at one point in time a very highly traded stock.
And you see once the company lose value, you have a long downturn. They're just continuous of selling off. Because people don't like losing money, right?
But a lot of times, you won't get a stock that just gets bought up forever, right? At some point, people are going to take profit. They're going to rotate to another ticker or whatever the case may be. So seeing two ups for a long time is less likely than seeing a lot of two downs for a failing company.
If something is failing, everybody's going to be pulling their money out. And that's what the two downs signify. The two downs signify selling. That's what's happening for whatever time frame you're looking at. The two downs are signifying selling and two ups are signifying buying.
So you have a series of two ups like right here. We have a two up, two up there. But they bought for two days.
They were buying it for two days. And I don't know where my numbers are. Give me one second. So if you look here, we have two down, two down, two down.
They were selling it for three days. Then we had a two up. They bought it for one day, then two down, two down, two down. They sold it off for another couple of days.
OK, so those two bars are your directional candles. So lastly, we have three bars and I have everything color coded. This is how I would. how I learned the strap with these colors.
So I kind of just stuck to them. I usually keep my inside yellow, quickly identifiable. And then I have my three bars are purple. So whenever you see a three bar or whenever you see a purple coated candle on my chart, that means that's a three bar. Now what a three bar is, it's the opposite of a one bar.
So for a one scenario, we said that it did not break the high or the low of either candle. Now a three bar breaks the high and the low of the previous candle. So if you see here, this candle went up.
It broke the high of this of this previous candle. And it also broke the low of this previous candle. And let's find a let's find a convincing a convincing candle so you can really see it.
So right here, this is a perfect example. So if you look at this candle right here, this is the high and then this is the low. Let's write that in.
High, low. Okay. So if you see this candle, it broke the high and the low. Now, why this is important is a three bar signifies aggressive buying or selling. Right.
So with the two bar, we said it's directional. Right. If it broke two down, then that was selling. Right.
It was really no other way how to put it. They were selling. If they broke two down, they wanted to take it lower. What the three bar means, let's say we have a bullish three bar.
That means that they they try to sell it off. They attempted to sell it off. The buyers said, no, they were so aggressive that they not only took it from the low of the previous day, but they also took it past the high of the previous day.
So that signifies a very aggressive move. They tried to sell it off. They were unsuccessful.
And then the buyer stepped in and then they bought it up past the high of the previous candle. And it's the same on the opposite side. If they started buying it up in the beginning and then they took it down to the low, that's aggressive selling.
That's very important to note because that can set the tone for the next follow up candles. So if you see aggressive buying and what we want to do is follow the money. When you see a three bar, your automatic thought should be, OK, that was an aggressive move.
Let's see if they continue that trend. That's what you would be looking for. OK, let me check the chat.
Make sure there's no questions. OK, so let's finish out the how you deal with these scenarios before I move on to broad information. So.
The strat is technically a reversal strategy. And what we mean by that is we have these strat combos right here, and we have them posted in the group, but I'll take a picture of this and post it again for you new guys. These are strat combinations that we can use to be profitable.
And what these allow us to do is to have an entry target, an entry price. and a target. And those are the two of the three most important things that you want to have when you're in a trade.
You want to have a plan. So you want to know where you're getting in, what your target is to get out, and then you want to have a stop loss. So let's show you that.
So we have these combinations here. We have a 2-1-2. bullish and bearish.
We have a 3-1-2. We have a 2-1-2 to the downside. We also have a 1-3, and we have a 1-2-2.
And the most common one that people usually use is a 2-2. So the 2-2 means is a 2-down and then a 2-up, because that signifies a reversal. So you have a two down and then you have a two up.
So when you're looking at your charts, you may not. So right here we have a two up, two up, right? So you may not, you may think like, where do I see this two up, two downs?
You don't, you have to anticipate it. So we use hammers and shooters as actionable signals. Hammers being. an actionable signal reversal to the upside, shooters being an actionable signal to the downside.
So if we know we're in a downtrend, right, and then we have this small little run up, and then we have a shooter at the top, and we know that we're in a downtrend, and it may likely want to continue the downtrend, we can anticipate a 2-2 reversal. So what What I mean by anticipate is we're going to be looking for the next candle to break the low right here to get into puts. Now, what our target will be is the previous candle's low right here.
And if you go back to our sheet, you can verify that. You see for the 2-2, it says that the entry is right here, the low of the candle that you're focusing on. and then the target is the low of the previous candle. So when you're picking your targets, you want it to be the nearest candle that is lower than your entry for puts.
So if you look, if you think about inside bars, it's always going to be the candle to the left of it. But sometimes it's not always the case for two-two reversals or two-twos for the next candle to the left of it to be right next to it. Sometimes you have to go back and... you have to go back to previous candles. So let me try to find an example of that.
So you see what I mean. So right here, this would be a perfect example. Well, actually, I'm sorry.
One second. Oh, actually that would be for two, two continuations. So we're good. I'm sorry about that. So yes, this is the put entry.
We're looking for a two up, two down. So we're looking for the next candle tomorrow to break this low and reach this target. Now that does not mean that it's gonna reach that target every single time.
But trading is a game of probabilities. So that means more times than not, it's going to reach that target. The strat is already a strategy that has all the factors already built into it.
So you don't have to guess either it is going to do it or it's not going to do it. It's pretty much that simple. Sometimes you may break down two down for the next day and it doesn't reach this target this day.
It does it the next day or maybe two days later. But overall. We know where price wants to go because we have the target. More times than not, it's going to reach this target.
And that's what you want in trading. You want to edge a system that tells you where price is going. It's just up to you to buy the time on your contracts to allow it to get there.
So this would be the target for a 2-2 reversal. once again, the reason we found this is because we were trending down. We were trending down.
We pulled back. We continued to trend down. This is the pullback right now. So what we're expecting is it for it to continue its trend.
Is there anybody who does not understand what trend is or how to define it? Is there anybody who needs an explanation on trend? Because that's very important also, not just the strap, but trading, period.
Yes, I can. I'll explain it after I make sure everybody understands trend. Because if you don't understand trend, then a shooter or a hammer is no relevance.
So once again, don't be scared to speak up if, yes, did somebody say something? Hi, it's me. Okay, can you kind of go into a little bit more details into trend? Yes, absolutely.
Have you ever heard of a trend line? Yes. Okay, so that's pretty much what trend is. So here we obviously have a downtrend, right? You can see that we obviously have a downtrend.
So when you're drawing trend, you want to find at least two points that show you the direction of where that stock is going. So technically, this would be the trend line. This is kind of hindsight, but this would be your trend line, right?
We have a point right here. We have a point right here. We have a point right here.
So this is our trend line. But when you look at it from a market structure aspect, this is also how you define trend. So if we have an uptrend. It is a series of higher highs and higher lows. OK, it doesn't always work out this perfectly, but that that's pretty much what it is.
OK, we have higher highs and higher lows making this upturn like that. Let me turn my magnet off. So if you look, this is a low right here.
This is a low right here. this low is higher than this low, right? We have a high right here.
We have a high right here. This high is higher than this high. And this high is higher than this high.
This low is higher than this low. So we are trending up because you have to realize that stocks don't just go linear, straight line up. They go up, then they pull back. They go up and then they pull back. they go up and they pull back.
So the overall picture, they're going up, but in between that range of where it's going, it has drawdowns or pullbacks. So if I drew a line right here, you can see that this stock started or this line started at 8,263 and it ended up at 8,889. So obviously 8,889 is greater than 8,263.
So it obviously went up. Right. But what did it do during that time that it went up? It went up and then it went down some.
It went up and then it went down some. It went up. It went down some.
Right. It overall it got to 88, 89, but it had it did have some sell off periods during this tenure going up there. OK, so for a downtrend, it would be the opposite.
delete this. So for downtrend, it will be opposite. We start at a higher price, we go down, and we have lower highs and lower lows.
So now we're trending down. Okay, so we have lower highs and lower lows. That will be our trend line right there. This is a high, this high right here. This high right here is lower than this high.
This high right here is lower than this high. This high right here is lower than this high. And then on the opposite side, we have our lows right there, which I'll make a different color.
This low is lower than this low. And it's the same thing on the opposite side. Does that make sense? It's creating this downtrend.
Yeah, it makes sense. Thank you. OK. Yes, this is being recorded. Have a safe flight, by the way.
Boom. One second. Some people just popped up on. There we go.
So, yes, that is the trend. So the reason that is important is because. this is how you find your hammers and your shooters. So when you have a downtrend, you have a high likelihood if you see a shooter here, a shooter here, a shooter here, that it's going to want to continue to the downside. Somebody said the trend is your friend.
Absolutely. So if you find a shooter at the top of a pullback, in a downtrend, you know, for it to be a downtrend, price wants to continue going lower. So pretty much all you're doing is buying your ticket and you're hopping on the board and you being a follower, right? You follow on the money.
You know they want to take it lower, but they had a brief period where they bought it up for a split second. I know Tensha likes to say this is ill time longs while it's trending down. So the rest... the rest of the money is selling. And then you have those few people who they think they're smarter than everybody or whatever the case may be.
They try to take it long and then they get crushed and it continues to go lower. For an uptrend, we have those higher highs and higher lows. That was ugly.
We'll just leave it at that because that's ugly. We have those higher highs and higher lows. We have people that's taking profit, right? They're making their profit on their way up. They want to sell.
They want to sell, get out of their positions. So they're going to sell some of their shares or whatever the case may be. That is going to signify selling pressure. You're going to see it start to go down slightly.
But the overall move wants to go up. So you ever heard the phrase, one monkey don't stop this show? They want to take it up.
So just by that short-term selling will not stop them from continuing to take it up. So when you have an uptrend, you want to look for hammers in these areas. Hammer here, hammer here, hammer here.
Because you know a hammer is an actionable signal when it's at the bottom of a downtrend to be a reversal to go back up to the upside. And vice versa for shooters. If you see a shooter at the top of a small uptrend or an uptrend period. That signifies a reversal to go to the downside. So when you pair that with trend, if you see a hammer in an uptrend, or I'm sorry, if you see a hammer in a downtrend, but the overall picture is an uptrend, you know that they want to continue to take it up.
You can take advantage of that and follow the money on the way up. So those are actionable signals. And a hammer is always going to be, well, we'll get into that. A hammer is going to be a two. You want to find a two to reversal for a hammer to take it to the upside and go long.
And for a shooter, you're looking for a two to reversal to the downside, a two to rev to the downside to go short. And that is why I chose Disney, because that is the situation we have right now. So overall, we have a downtrend.
We have a shooter. So we have a small uptrend right here, but we have a shooter at the top of the of this slight uptrend to continue going down. So that would be equivalent to this example that I just showed you right here.
So we had that small pullback where it was short term buying. We have a shooter to continue down. Now, that does not mean that it has to do that every time. And we're not going to be right every time. But what we want to do is we want to stack all the odds in our favor.
If you draw a trend line, you can see that it broke trend already. So this could just be, you know, it could just test this trend line and go back up to the upside. But until it proves to us that it wants to go to the upside, we're going to assume that it's going to keep continuing down. OK, let me check the chat. It's just Tencho and they're dropping gems.
He picking up where I'm lacking. So appreciative of that. Yeah, so that is the importance of shooters and hammers.
And we will find an example of another hammer. So you find hammers at the bottom of a downturn, and they usually signify a reversal back up to the upside. So if you see here, we have a... hammer down here, and then we had this run up. But as you can see, we did continue to come down though.
And that is mostly because the overall trend was down. We were trending down. So we had this short-term run up, but then it just continued to go down. Let's find another example. We have one right here, and then we had that short-term run up.
uh disney has not been getting bought up for a long time so it's gonna be hard to show you an example um here we have another hammer we went two up and then we had that small little run up this would be a perfect example of a 2-2 rev that did not reach its target the next day but it eventually it reached this target so this would be your call entry this would be your price target because it's the nearest candle to the left that's higher than your call entry. That would be your price target. It did not reach it this day. It went two up. It broke the two up.
We had an inside candle, so it did not reach the target that day either. Almost reached it this day. And then the next day it blew past the target. So that's how you can take advantage of the strat.
The strat kind of gives you a good idea of where price is going. It's just up to you to be patient, to allow it to play out like that. So, yes. So with the strat is you're pretty much when it comes to these two, two revs, two, two reversals, you are anticipating the next two. So obviously we don't have a two down here, but the setup allows us to anticipate or predict.
that the next candle will be a two. Now, if it does not go according to plan, then, and it doesn't go too down, then we just don't take the trade. It's as simple as that, because our game plan is for this to go too down, to go to the downside and reach this price target. If it never goes too down, let's say it stays inside, or let's say it goes too up tomorrow, then you walk away from the trade because you did not plan for that.
Now, the thing about inside bars, is since they signify consolidation, you play them to either side because after you have consolidation, you have a breakout. So after consolidation, whichever side it goes to, whichever side it breaks out, whether that be the high or the low, that's usually the side that's going to have control for that next candle. That's not always the case because we have three bars, and three bars, as we know, take out the highs and the lows. So That is one thing you have to watch out for inside candles is sometimes they may take out the high and the low. One one ticker just did that today.
I think somebody asked me about it yesterday. What ticker was it was Verizon. It was Verizon.
Somebody in the discord asked me about it yesterday. So as you can see, we had this inside candle and then we broke out. We started here.
So we broke out the low first. And then they bought it back up and broke out the high. So the thing about a three bar is a three bar was once a two bar and it turned into a three.
Right. So the three bar is the only thing that another candle is the only scenario that another candle can transform into. So something can start off as a one and then it breaks as a two down or two up and then it can turn into a three because it breaks.
Both ranges. A one is always a one. Nothing you can do about it. A two is always a two.
If it breaks the high, it's a two unless it breaks the low and now it's a three. Does that make sense? I hope I didn't confuse you with that.
So at some point, this was a two down because it broke the low and then it pushed up and it broke the high, turning it into a three. So nothing starts as a three. Everything. Well, not everything. You can start as a as a one or two.
So something gaps up and it just breaks the high. That can be a starting as a two or something starts inside of the previous candle. It starts as a one, but nothing ever starts as a three.
A three was once either a two down or a two up, but it took out the other range, making it a three. And let me check the chat because I see some numbers on there. Yes, Drake just hit it right on the head. A one can become a two. A two can become a three.
But a three will always be. So one can become a two. A two can become a three.
But a three will always be. Once it's a three, you can't turn back from that. It took out both of the ranges.
And that's that. There's nothing you could do about it. Does that make the three scenarios make sense to everybody so far? We're going to move on to broad information after this, but I want to show you guys price targets for each scenario. Yep.
I'm going to get into that the indicator for this. I just want to make sure you understand the indicator before I give you the indicator. Because giving you the indicator, if you don't know what they mean, it does nothing for you.
On the one three bullish is the following candle determine the direction. So on the one three bullish, usually, yes. But when you have a big bar like this, which is called the mother bar. It's a big range.
It's harder to break this range. So I forgot who asked me about Verizon yesterday, but 1.3 setup is my favorite setup because usually the following candle can pretty much set the tone for the direction after that. But when you have a big range like this and it's at the top, it's already been running up, you're likely to have another inside candle the next day.
because this range is so large for it to break. And Verizon does not move enough in a day for it to just blow through this range. So I told them, you know, watch out for an inside day tomorrow because.
it may stay inside. It may trade sideways, may consolidate for a few days. But what you can do with a three bar is you can, you know, plot the high and low of the three bar.
And whenever it breaks that side, you know, you can get in. So a one, you play both sides. So this being an inside bar, you can play the high and the low. You have no bias with the one. So we have calls and puts with the one bar, which means if we break the low tomorrow, then this is our target.
This is our daily price target one or profit taking one, however you decide to decipher that. If we break the high tomorrow, then we take calls and this is our price target. So with ones you play to either side, you could play the high or the low, whichever side it breaks out of.
Now, if it breaks the high and then it comes back down and take out the low, you know, there's nothing you can do about that. Threes happen. You have to acknowledge that threes will happen. And that was the case right here.
Right. When you play inside bars, it's pretty important to not to get too greedy because. they can turn into a three very easily. Usually inside bars are tighter ranges. They're a smaller range, so they can turn into three bars fairly easy.
As you can see here, if you look at, and let's actually break this down so you can see how it can go against you if you don't stay disciplined with your price targets. So if we look at this candle right here, let's say we were, we seen inside day. And we wanted to play this the next day. So this would be our this would be our call entry.
This would be our price target one. This would be our put entry because we play both sides. And then this would be our price target for the downside. So. We initially broke the low.
The reason I know that is because this is a green candle. That means we opened down here. That means we went as low as right here. This candle started off as a two down.
So part of the strat, once we go two down, we're looking for it to go here. That did not happen. We broke the low and then they started buying it back up.
So at this point, you probably, your stop loss, however you decide to do your stop loss, it probably kicked in and it should have kicked you out of this trade. If you don't get out of this trade, then you see it keep they keep buying it up and then they take out the high, turning this into a three bar. And then it hits his price chart is profit taking target number one right here. So if you were patient and I know this is new to a lot of you guys, but we will show you the 50 percent rule later. And actually, Drake has a actually drink.
is that part of your indicators the 50 i know we have it in the bots um in our group we have a 50 box yeah we got a 50 active three bar indicators okay And he's going to be hosting a class this weekend, I believe. So everybody tune into that. He has some dope indicators that I highly recommend. It really makes trading easy.
So he's going to be hosting a class on his indicators. So make sure you guys tap into that. But yes, so this turned into a three bar. So if you were patient, then you were able to take advantage of not getting faked out to the downside and waiting for it to hit the other.
in, get in the calls here and then make profit there. This is a terrible example because it was only a two cent. It was only a two cent PT difference, but the concept is the same. It's not always going to be a two cent.
Sometimes it's multiple dollars. It could be a $3 move, a $4 move, or whatever the case may be, where you can really make profit just by staying patient. So that is how you play inside bars. You play them to the upside or the downside, depending on which side they break. So if you want to practice.
You can always start with inside bars. They're the easiest to trade. They're the easiest to identify.
You can spot an inside bar without trying. Inside bar, inside bar. And if you color code it, it makes it very easy. Inside bar.
So whenever you're going through your little watch list, if you want to just start by identifying inside bars, you can chart them out, your call entry, your price target, your put entry. This would be your price target, your price target. And you can just watch it play out until you get comfortable and confident in seeing the strat actually work. So actually, that's what I want you guys to do. I want you guys to go to Verizon and chart this on your charts and see how it plays out tomorrow.
Does it break the upside? The upside? Does it break the downside?
Does it reach its target? to either side. If it breaks the upside, does it reach its target?
If it breaks the downside, does it reach its target? Check the chat. I'm not going to expand on the 50% rule right now just because it's a lot of beginners on here and I really don't want to confuse them, but we can do that another day. I usually do a Q&A on Thursdays. So questions like that, we can save them either for this weekend or Thursday, but I don't want to confuse people with the 55% rule right now.
So I'm glad you asked that. So a three bar is technically not an actionable signal. So the person who created the strat, he did not create it for you to play three bars. He wants you to acknowledge that three bars exist because they also form broad information, which is what we're going to talk about next.
But they aren't technically actionable signals for you to play. Now, I play them most a lot of people in a group, they play them, but they aren't actually actionable signals for you to play. But with that being said, you still play them the exact same how you will play them, how you will play any other bar. So we have a three bar right here.
This is a this would be actually I'm going to ask you guys this three bar right here. And I'm going to turn the indicator off. We note, just follow this bar. I'm going to turn the indicator off and tell me what does this bar signify.
It took out the high and then they sold it off. So I'm going to turn off the indicator so you can identify that it's red. Oh, it turned off the wrong one. What would this bar signify right here? And I'm going to check the chat.
Somebody said two down, downtrend. Come on, y'all. Don't be shy. Let me get some more answers in here.
Aggressive, three bar. So we know it's a three bar. I want to hear what does that three bar signify?
So, so far, we have two down, downtrend, aggressive. Oh, that's a good one. Expansion of price action.
So what this signifies is aggressive selling. right? It's an aggressive move to the downside.
They took out the high of this previous candle and then they sold it off. This is a very aggressive move. So if you want to play a three bar and I'll turn the strap back on. If you want to play a three bar, if you know this is aggressive selling, you can expect that the next candle would also continue whatever that three bar did.
So if you want to look for puts, since that was aggressive selling, You just put your put entry at the low. And this is a good example of how the next candle to the left of it may not be lower than this entry. This would be the next candle, but it's not it's not lower than your entry. Right. Does it make sense if you're in puts to have a price target that's going to lose you money?
No. So you want the next the next candle if it's not lower than your put entry. then you keep going until it is lower. So it will be the closest lower, if that makes sense. Oh, that's the wrong one.
The closest lower candle. So the closest lower candle in this case would be this candle's low right here. Would not be this one, would not be this one, would not be this one, because those are all higher than our put entry.
That doesn't make sense, right? We want to go short. So the next lower would be this candle. And as you can see, this trade would have worked out for you. So we have we broke two down.
We reached this price target. And you can have multiple price targets, but the strat only really I don't want to say the word guarantee guarantees you. But the strat, the strategy of the strat is for one price target. Anything past that is up to you.
So if you decide to stay in a trade and go to. price target two or price target three that is solely on you but after it hits price target one then the strat has done its job so anything that happens after that is strictly on you don't get greedy yep so that's how you will play a three um that's aggressive selling you know, you kind of just got to use common sense. That was aggressive selling. I want to see if they continue that selling.
I'm looking for puts. That is the put entry. It would be the low of this three bar. This would be my price target. And then you watch it play out.
And as you can see, it worked out. Now we also have, if you go back to the strat actionable signals, we have a three, where's that? A three, two, two reversal. So if you want to eat on both sides, Let's see.
If you want to eat on both sides, we have a aggressive selling right here, right? We have a hammer at the bottom of a downtrend. So we know this is setting up for a 3-2-2 back up to the upside. So if you see a three bar and then you see a two down, especially if you see a hammer.
it is a good chance that it's going to go 3, 2, 2 back up to the upside because that's one of the actionable signals. So 3, aggressive selling, 2, 2 down, and it ended as a hammer. Now a hammer signifies a reversal because they tried to sell it off, it didn't work, and then they started buying it back up. You can identify the hammers by these wicks.
When you have a wick that's about two-thirds as long as the body. that signifies that they tried to buy it up. They tried to buy it back up. So the following candle has a good chance that they're going to continue to buy it up.
So when you see a 3-2, especially a hammer, well, really a 3-2 hammer, that is a good actionable signal to take it to the upside. So this would be our call entry to go long. And then this would be our price target all the way up here.
Now, that's a big range, so it may not play out that day. But part of the strat is to trust that it's going to reach it at some point, which it did. It took two days to do it, but it did reach its price target. And let me check the chat. Yes, we especially like hammers at the end of a downtrend.
Would you enter when the second breaks of the second it breaks the first? Wait, the second two breaks. Would you enter when the second two breaks the first or wait until it closes?
I think he's talking about that. The hammer after the three, the hammer-ish candle after the three. That's the first two.
I think that's what he's talking about. And then the second two is obviously when it breaks to the upside. Right.
Okay. Yeah, so you will be entering this one. After it breaks the first two, that's when you want to get in right there.
If you missed it, you can try to get in right here to get to this price target. But then you will be getting in on a 2-2 continuation. See how this already went 2? That means the next two would be a continuation. That could work out for you.
That's not part of the Strat system. I also do play two twos if they're set up the right way. But per the strat, you want to get in on this one because at this point you're kind of chasing it, which is nothing. You know, I don't want to say there's nothing wrong with it, but this was the best case scenario right there. That was the best entry to get in the break of this two and then ride it up to this price target right there.
I hope that answers your question. Yep. So the reason we were even on Disney is because of this shooter. So everything I just said about a hammer.
It applies the same for a shooter at a downturn. We really like shooters at the end of an upturn or a TTO, which stands for triangle day out. Not going to get too deep into that because we do have videos on that that I advise you to watch. But like I said in my example, once we have those pullbacks, you want to be looking for shooters to continue the downturn. So I expect Disney to go to down tomorrow.
And let me look at maybe not. Maybe not. We'll get into that.
We just broke to a downtrend after we've been trending up. So we want to see this downtrend continue. But I expect.
I expect Disney to go two down tomorrow and reach this price target. And that's going to be our homework to chart Verizon with this inside candle, see what it does, and then chart Disney. We have a shooter. We're going to be looking for puts to reach this price target right here. And I want you guys to drop that in the chart section in the group.
So the next thing... for the strat is broadening formations. Now what broadening formations are, they're pretty much supporting a resistance, but it's a different way of looking at it. So when you learn about charting, you learn that you have a resistance.
Let's say that's a resistance, right? It tapped it a few times. We have a resistance right here. We have a support right here.
Right. You can obviously see my screen froze. You can obviously see that this is a support. Right. It bounced off of here, bounced off of here, bounced off of here.
And then in the future, it came back and it bounced off of it again. So that's obviously support. Right.
Now, the problem is when you look at support and the resistance is you get caught up in looking at it in this horizontal view. And that's not always the case. So usually how it actually works, instead of it just being linear, horizontal, it's actually at a diagonal line like that at a sloping line.
You guys see the difference? So instead of it being up and just straight across, it's usually actually at a line like this. Now, what a broad information is. is it signifies exhaustion to the upside or the downside.
And like I said, it's still a form of support and resistance. So the broad information is a good point of where you can find reversals back to the opposite side. So we have a broad information right here. Let me move this. So what that means is if we see price.
start to come back up, right? Let's see. We see price start doing this and then it reaches the top like this. There is a good chance that it may want to, I don't know what's going on my screen.
There's a good chance that it may want to come back into the range. So broad information shows price expansion. It shows that the price action is expanding.
So it starts, it's going. up and it's going down. And then it wants to go from top to bottom over a period of time. It just continues to go from top to bottom. So at some point in time, we may see price going something like this.
And obviously it'll make some stops in between, but that's pretty much the basis of what broad information does. It seeks the highs and the lows and it keeps expanding. So when it makes this expansion, it looks like a megaphone. If you look right here, it kind of looks like a megaphone. That's how you know you did one right is when it's expanding.
If you have one and it's contracting like this, you see how we're getting smaller, then you drew it wrong. So the way you draw a broad information is what you want to do is you want to find a high. you want to find a high point and you want to draw it to a previous lower high.
So we have a high right here and then we have a high that's lower than our initial high. And you connect those two points and that'll give you a broad information top. And then for the bottom, you can find a low and connect it to a...
previous low that has to be, I mean, I'm sorry. Yes. A previous low, but it has to be higher than your initial low. So this was our initial low. Our previous low has to be higher than it.
Now what would happen if we had one that was lower than this low? Well, then it was like, as for example, like this one, right? That low is lower than this, lower than this one.
Well, now we have, now it's sloping. up. And that's not what we want. Because what that means is at some point, that's going to intersect. And that's not what we want.
If something is going to intersect, that means it's going to start contracting. We're not looking for contraction. We're looking for expansion.
So we want to go from a low to a previous higher low. Now, broad information are everywhere, and they're infinite. So there's no wrong.
place for you to draw broad information. It really depends on how you see them. The only rule that you have to abide by is for a broad information top, it has to be from a high to a previous lower high. And for a broad information bottom, it has to be from a low to a previous higher low.
So if you have those two criteria met, then you have a broad information. Now, the cool thing about... A three bar is automatically a broad information on a smaller time frame. The reason being is because what is the criteria for a broad information top? It has to go from a high to a previous high.
Check. For a broad information bottom, it has to go from a low to a previous higher low. Check. That makes this a broad information on a smaller time frame. So if we were to go to like a five minute and let me turn that off.
If we were to go to a five minute, you will see that playing out. So you see how we start here. We hit the top of the broad information, reverse to the bottom, hit the top of the broad information, reverse to the bottom, play around a little bit, hit the bottom of the broad information.
Go back up to the top of the broad information. You guys get that? You see how that's playing out?
And this will play out on a daily time frame. This can play out on a weekly time frame. It's the same concept.
We're just looking at it on a smaller time frame. So these scenarios can play out on any time frame. It could be a daily. It could be a, let me delete this.
It could be a weekly. You still have these scenarios. See, there's your inside bar.
There's your inside bar. There's your outside bar. And you see what happened after this outside bar. We had a very aggressive buying after that.
You can find them on the monthlies. You can find these scenarios on any timeframes because it's not the timeframe that matters. It's the candle. It's the price action. So all you do is apply the price action concept to the timeframe you're looking at.
So you'll say, oh, we had an outside month. We went three. Three means outside or outside means three bar. Inside means one bar.
We had an outside month. Oh, we are. We had an inside month.
Let me check the chat because you're lighting this thing up. Yeah. Attention.
A question. Yes. How many. Broad informations, do you draw on one time frame?
Is it just one and it just continues? Like, let's say you do it on a daily, like it lasts for months and months. So broad informations can definitely be respected in the future. To answer your question is however many you feel comfortable drawing.
If you only want to look at one, nothing wrong with that. You could draw one for what broad informations are very personal. So whatever information you specifically are looking at, you can draw them like that. Me personally, I draw millions of them.
uh literally i'll show you an example let me see so like i have a few of them but then i have a lot of them like they start to look like spider webs the more you draw um the more of them you draw they start getting a little hectic so if you don't know how to um manage them or know what you're looking at, then they can start getting a little bit much. So like right now, these are all of my broad informations and I have them color coded in different colors. Now this may look crazy to you. Like, like just, this might just look like random lines to you, but they're all broad information.
So when I break down to a smaller timeframe, these are broad informations I probably drew a year ago. or over, you know, it's been about a year that I've drawn them. And as you can see, they're still being respected.
So you can use broad information as support and resistance. So once it breaks this broad information, you can say, hey, it's heading for this broad information. Once it breaks that broad information, hey, it's heading for this broad information.
So it really depends on you. I do have a video on broad information that literally shows you step by step how you can draw them, how you can customize them. to your liking. So at least you see all of the options that you can do with them, but you can literally have a million broad information. It's just, can, if you can read them and you can understand them, that's all that matters.
Or, you know, some people, they just like cleaner charts and they just want the, the one broad information and there's nothing wrong with that either. The thing about with one broad information is if you draw them, let me see, delete that. If you draw the broad information very conservatively or like reserved, let's say this is the bottom of a broad information right here. That is not the line I wanted to draw. One second.
So this is the bottom of a broad information. Right. And you could tell you drew a good broad information when you go back in time and you can see it being respected. So I drew it from this point, from this current low right here. to a previous higher low and that gives me that that downward slope right so now i'm looking for a broad information top and that would be right here we have a high here and then we have another high a lower high right there so let's say i decided to draw my broad information like this and I only want one broad information.
Yes, this could potentially get respected, but look how much I will miss out on if I waited for it to get all the way up here, because there's so many other broad informations in between there. So if I waited for price to get from 30 to 64, I might be waiting a very long time. I might be waiting years before that happens.
Right. Maybe if you're a long term investor, that might be a good method. But you're missing out on a lot of information.
So one thing you can do is you can either find a current broad information that's very close to in relation to price right now, or you can draw multiple ones. And like I said, if if you go through the education tab, you'll see where it says broad information. And I'll literally show you all the different options that you could play around with it. I don't want to make this too, too long because all of these individual concepts I've already broken down in other videos.
I just want to introduce you to the strat so the other videos make sense. Let me check the chat. I was told less lines make less money.
A, if that works with you, then great. You know, a lot of lines for me doesn't bother me. The reason being is when I'm on a smaller time frame, you don't see them how you see them like that.
They're very far apart on a smaller time frame. And it gives you points of interest to look for rejections or, you know, things in your way on a smaller time frame. So they don't bother me.
But, you know, if you like a clear, naked chart. That's, you know, that's good for whoever, you know, it's very personal. Trading is very personal. However, you see fit, go with that. So, so far we talked about scenario ones.
Do we have any questions on scenario ones? Okay. We talked about scenario twos.
I'm going to do a recap. Scenario ones are our inside candles, which signify we did not break the high or the low of the previous candle, and it also signifies consolidation. The bears or the bulls have no control.
It's just going back and forth. They're playing ping pong. for whatever time frame you're looking at.
Another point that I forgot to mention is you cannot draw entries on live candles. So if something is inside, let's say something such as a weekly candle, if it's still inside week, you cannot draw an entry, a put entry or a call entry on it until that week has finished. So you can only draw. entries on closed candles.
So if we're looking at a day, right, and it's during the day, and that candle is live, I cannot draw a call entry or put entry on that candle because it hasn't closed. You only draw entries on closed candles. So that means if you're looking at a daily, the day has to be over.
If you're looking at a weekly, the week has to be over, which means it's Saturday or Sunday. If you're looking at a monthly... the month has to be over, okay? Which means you charted on the 30th or the 31st.
And once that closes, the first, that new live candle will be in effect. But you cannot draw entries on live candles. They have to be closed.
Very important. So for our inside candles, it does not break the high or the low. Our directional candles, which are our twos, which means it breaks one side. If it's a two up, then it broke the high.
If it's a two down, then it broke the low. The indicator that I use for these ones, twos and threes is the Strat Teach V2. And I'll give you guys a second to write that down. I'll actually put it in the chat too.
Threat teach V2. So you guys can write that down. Oscar asks, can you show how to keep certain lines on certain time frames only?
Oscar, that is not possible. What you can do is you can organize an object tree to take them away and put them back on when you want to. I also go through that in our charting video. Okay, there you go, Drake.
He got you. Current interval and below. See, I'm learning something.
I didn't even know you can do that. So what he's saying is if you draw lines on whatever time frame you're looking on, you can right click the line and go to visibility on intervals. Look at that. I didn't even know you can do that. So I just learned something.
I keep all my lines on all the intervals. So that's not something I will ever need. But if I need it, I know how to do it. I appreciate that, man.
You learn something every day, man. I swear it's never stopping. Okay. So we, um, So the Strat Teach V2, there's other Strat indicators out there such as Strat Assistant. That's what I started off with.
I don't like Strat Assistant anymore because it looks very like retro to me. It looks like 90s digits. I'm just not a fan of it. The Strat Teach V2 is very, very, very customizable. You can change the color of your inside bars, your two ups, your two downs.
You could do that with Strat Assistant also. Um, but it also gives you a lot of different options that I like, excuse me. And with Strat Teach V2, it shows a full timeframe continuity, which I just realized I did not go into. Um, so full timeframe continuity, which is one of the other truths of the Strat, which it means that you want to have your 60 minute, your one hour, you want to have your one hour.
your daily, your weekly, and your monthly all in agreeance with each other. You can add the quarterly and yearly in there also, but you want them to all be in agreeance with each other, which means let's say your hour is green, your daily is green, your weekly is green, your monthly is green. That shows you the participant group, which has control. The higher timeframes, such as your quarter, your monthly, and your weeklies, they're going to show you overall. hey, they've been buying this quarter.
Hey, they've been buying this month. They've been buying this week. So if you're looking for a day trade opportunity, you want to be able to follow the money. So if they've been buying all quarter, all month, all week, and let's say we have a two down on the previous day, and you're looking for a two-two reversal to the upside, it's a higher probability that you can hop on.
that train and follow the money because they've been buying it all week. They've been buying it all month. They've been buying it all quarter. So when you have all of these in agreeance, they're all, either they're all green or they're all red. And another example of something that's all red right now would be, let's look at XOM.
So XOM closed out green on the hour, but let's say tomorrow. we have, we get into puts, right? Let's say we get into puts.
You see how we have a red day, red week, red month, red quarter, red year. That's showing you that they are selling this. They've been selling it all day. They've been selling it all week.
They've been selling all month. They've been selling it all quarter and they've been selling it all year. So you can find opportunities to the downside because this is telling you overall what they have been doing. Now, when they all agree.
with each other, then that is a higher probability that the trade will go in your favor. So let's say for whatever reason, XOM goes two up tomorrow, right? Giving us a three, two, and we will be looking at three, two up, right? So it will be green on the day, but it's still red on the week, the month, the quarter, and the year.
So if we get a three, two up shooter tomorrow, you bet your ass I will be getting into puts. If we got a shooter tomorrow, I will be getting into puts on Monday because this is telling me that they, the participant group are the bears. The bears want to sell it.
So if we get a three, two up shooter, I am shorting this on Monday. I doubt very seriously that happens, but if that did happen, those will be setups that I will be looking for. I want to follow the money.
The money is to the downside. So I want to do what they are doing. We don't have enough money to move the market.
Whoever they are, this participant group, they do. So I want to follow the money. Let's say you have buying on the hour, daily, weekly, but not month, but you trigger on hourly for calls. with the month conflict. So you can have timeframe continuity conflicts.
One thing that I do is I note where all of those timeframes flip to the other color. So right now, if we look at this candle, that means this candle open right here, right? We're on a monthly timeframe.
So what I would do is I would go to the monthly, and then I will put monthly flip. So what this means is if we get back above this level right here, this will make this candle green on the month. And then I go down to the week. So then I identify where the week opened.
The week opened right there. So then I will put the weekly flip. That's the weekly flip right there. So if price gets above this level, this will turn the week green. If it gets above this level, that will turn the month.
the month green um and i also will do the quarter two so the quarter open all the way up here and if you don't understand um where a candle open then we have to get you together on candle anatomy which means how candles move like what makes up a candle and what they signify um so this would be the quarter so if price gets back up above this that will flip the quarter green now the reason this is important is And then whenever the day opens, you can mark the days open. The reason this is important is if let's say the week is green, let's say the day is red, the hour is red, but the week is green, but the month is red and the quarter is red. Right. By me identifying these flip points, I know if we start heading into the direction where we can flip the week red, we will flip into full time frame continuity. So I'm okay with taking a trade if I know we're going to flip into that full time frame continuity.
Don't get me wrong. I do still take trades that's not in full time frame continuity. But I wanted to teach you guys all of the things that make up the strat.
The strat is made up of full time frame continuity. So if you want to play it, you know, step by step, how it was designed to be traded. That's one way you can do it is you can look at where.
the week will flip? At what point will the day flip in your favor? At what point will the hour flip in your favor? At what point will the month flip in your favor? That is how you can do it is you mark the opens of those timeframes and that'll show you at what point of time you will have full timeframe continuity.
So as of right now, XOM is right on the week, month, quarter, year. If we open up green tomorrow in the first hour, The hour will be green. The day will be green because the hour is green.
The week will still be red. The month will be red. The quarter will be red and the year will be red.
Now, if we mark the open of that candle and then price starts to come below the open, now the hour is red. Now the day is red and we have full time frame continuity. And now what we're waiting to do is to break the loaf to get into puts. Okay. Does that make sense?
I know the strat is mainly for daily play. No, it's not. I know the strat is mainly for daily plays, but could you use this on a five-minute chart? Yes. The strat is literally for all timeframes.
The strat can be used on a one-second chart, if you really like that. Like, if you fast enough. The strat, it has nothing to do with the timeframe itself.
The strat, well, I'm sorry, it does. But the three... um scenarios a one a two and a three that is on every single time frame i don't care if you put up a millisecond chart you're gonna have some a candle that's either inside the previous candle it's gonna pick a side which is your directional candles two up two down or it's gonna go outside and take out both ranges that is how price moves no you can't argue it that is literally how price moves it either stays inside it picks a side or it picks both sides.
And you can't dispute that. So the strat is on any time frame. You can use it on any time frame. Now you should not be finding plays on a five minute or those smaller time frames.
We use the daily to find plays, one of the time frames to find plays. But I find plays on the weekly. I find plays on a monthly. I find plays on a quarterly.
So you can use it on any time frame. These are universal truths that cannot be disputed. A cano is either going to be inside, is going to pick a side, or is going to pick both sides.
Yeah, we find plays on the yearly too. Damn right. We find plays on however high this time frame thing lets you go. I think it's 22 weeks, if I'm not mistaken. But I know what you meant, Tito.
But yes, you can. you can find it on small, smaller timeframes. And the strat actually helps you stay in your place longer on those smaller timeframes.
So for instance, if you're looking for it to reach your target and you're looking at a 15 minute timeframe, you want to see, if you're looking for calls or you're in calls and you're looking for your price target above your call entry, you want to, ideally you want to see two, two continuations up into your price target. trending in your direction. That is what you would love to see. And you can identify that by seeing the strat on the smaller timeframes. So that is timeframe continuity.
I do not want to keep going too much further. Like I said, Tencho has videos on this. I have covered every concept individually in the education tab. This was more so to introduce you to those ideas and give you a basis, a foundation of the strat.
But we do have these in the education tab that I highly recommend you watch over and over and over again until you understand. And if you don't understand something in those videos, literally start, go to the education tab, start with video one and then work your way down. And I promise you, you will learn a lot of information.
If you don't understand something. feel free to hit me up, Tencho, any of the moderators or admins, but start there. Everything I've talked about, we talked about the strat, which like I said, Tencho goes into greater detail.
We talked about timeframe continuity. I have a class specifically on timeframe continuity. We talked about broad informations. I have a class specifically on broad informations.
I mentioned TTOs. I have a class specifically on TTOs. which will help you identify for your broad informations. And that also covers reversals. So all of these things are in the video tab.
Let me see. Can you see the spider webs again? No. Yeah, I don't like to say I don't even draw my broad informations anymore. All of those broad informations are at least a year old because I can just see it.
So I can see things clearly. Like once you chart so much, you don't need you don't need all of that stuff going on because you'll be able to just point it out with your naked eye. But yeah, so this class was mostly for people who are being introduced to the strat. I was allowing you to tell you what it is. But please go check out those other videos so you can get.
every single detail that I may have missed. This was a very impromptu class that I did not prepare for like I would my other educational classes, but go check those videos out. Are there any questions that you guys want to ask before we close this up? I don't want this recording to get too, too long because it may not save.
Any questions you guys have? Yeah, I have a question. Yes. It's concerning price targets. So what if you do a holy grail and the one bar is just barely below or above the three bar, do you still use the three bar as a price target?
Like the previous three bar? So you said if the three bar is barely above the entry, is that what you're saying? Yes. Yeah, they're almost like line for line.
That makes sense, but it's just... barely a three bar so you can either so there's a couple ways you can do about that what example did we use something just did that whatever we started with um i think it was was a vz because it did that for the low end i remember showing you guys it was like a two cents difference or something like that um whatever the case may be um so what you can do is you can have multiple price targets so you could do like For instance, let's find an example. So like for here, right? You could do, let's say this was our call entry for, we just go use this as a quick example.
And then this is our price target. You can do PT1 and you can do PT2. So you can find where the next price target would be. And then you could try to target that one.
But keep in mind, the strat is only built for it to go to PT1. So if you look for it to go to PT2, you have to know that that is on you. These strat entries and targets, each candle serves as a form of support and resistance, right? So this candle's high right here is a resistance for this day.
So once it breaks through one resistance, that does not mean it has to continue going to the next resistance. It could just reverse right there. So if that is the case. And let me see if I can find your holy grail. So right here, it reached his target.
And we I forgot what we were charting when I first started because it was literally the perfect example. Let me check the chat. Were you looking for a Holy Grail that eventually went Rev Shratt? No, I was looking for a Holy Grail. That was like a couple cents difference.
It was like a... Oh, yeah. I don't have anything clear to mind right now.
I was looking at Intel, and Intel is like... That is different. Bro, that was the one. That was literally the one.
It was Intel. Glad you said it. It was Intel.
So yes, Intel was the one where it was literally a two cents difference. I'm glad you said that. So this would be the entry for puts and this would be the price target.
So it's a one cent difference. Now, so one thing you can do is you can go to price target two. Now, what you want to be very mindful of is your ATR.
And this means your average true range. Average true range is basically how much this candle moves in a day. So this moves a dollar and 20 cents in a day on average.
More times than not, it moves a dollar and 20 cents. So you can use that to help identify if it's logical for it to reach daily PT2, right? Maybe this is all it has.
It could very, very well break two down, hit this price target, and then reverse bounce and then go back two up. And the reason being is because this is still a support of this range right here. So for this day, it was a support.
And truly for this day, it was a support also because it really bounced off of it twice. You see that? It bounced off of it this day.
And then on this day, it bounced off of it pretty much a second time. So this is a support. So if we break two down, it could just hit its price target and then reverse back up to the upside. You have to use your better judgment for that.
And you have to see where Intel opens tomorrow. So Intel opens where it closed at at $42.15. By the time it gets down here, if it does go two down and we know the average range is $1.20, by the time it breaks two down, it's already used $1. So on average, it should only have about 20 cents more to go. Now, that's not law.
It can go more. It can go less. But it's saying on average, Intel does about $1.20. it makes a dollar 20 move either to the upside or the downside. So that's one way you have to look at it.
And sometimes if the price target don't make sense, you don't have to take the trade. There's a million other tickers, you know, find something that's going to have a, a better risk to reward for you, you know, just because it's an inside bar on Intel doesn't mean it isn't 500 inside bars on other tickers. So if you find something that, you know, makes you lick your chops, go for that one.
How do you get daily, weekly, monthly, quarterly, yearly to show up on ATR? What you do is if you're using the Strat Teach V2, you go to settings, you scroll all the way down. And then it's this right here.
So I have my hourly click. I have my daily click. my weekly, my monthly, my quarterly, and my yearly.
Now, if you don't want to, you don't have to have your yearly click. You can customize this the way you want, but definitely want to have your hourly. You definitely want to have your daily, weekly, and monthly for sure. Quarterly is yearly and yearly.
I highly advise it, but it's extra. It's just, if you want to go the extra mile and the way I have my ATR set up, I just have ATR click on that. And you could change the, yeah, I have my ATR clicked on that. And that allows that to pop up. And if you want to take it off, you just unclick it and then you see it goes away.
But I highly recommend the Strat Teach Me tool. It's a great, it's a great Strat indicator. One of my favorites and it's very, very customizable to however you like it.
Any more questions? Thank you, brother, for everything, man. No problem, man. No problem. I'm glad you guys were able to tune in.
Please hit that education tab. I'm going to drop some homework in there for y'all. to chart Disney and Verizon.
I may throw Berkshire Hathaway in there. I haven't charted it yet, but I may throw Berkshire Hathaway in there also. But, you know, I want to I want to see you guys practice.
And even if you mess, even if you go mess up, I'm cool with that. I know some of you guys haven't watched the videos yet. So, you know, be don't be scared to mess up.
You know, be be excited to mess up so you can see your growth and you can see where you started and where you're going to end up. I started off in your shoes at one point. Ten Show, Drake, all the experienced traders we have in here started off just like you at one point. We had a first day where we heard the strat at some point.
So just get excited to where you can take this thing and be ready to learn. With all that being said, I'm going to end the recording here. I hope you guys have a blessed and safe night. See y'all.