Missing by or sales may lead to opportunities for that gap to "fill" quickly when things reverse. Broadening formations occur when a market is experiencing heightened disagreement among investors over the appropriate price of a security over a short period of time. I have about enough knowledge and common sense to be able to write this indicator using only the basic definitions of the three (six actually) types of scenarios and the four basic reversals, but I still don't have the full ideology under my belt. Preferably we want the reversal to happen at the beginning of the week. Hammers are necessary because they indicate when to take immediate entry. You can find our full disclaimer located here. Using Benzinga Pro to create your watchlists to identify Scenario 2s can make identifying these patterns easier. 0:00 / 49:47 #TheStrat TrendSpider Webinar: Exploring "The Strat" with Rob Smith TrendSpider 41.8K subscribers Subscribe 601 Share 34K views 3 years ago In this webinar, we have guest Rob Smith. Broadening top (a.k.a. This indicator has many style options. Broadening Formations Written by HTMW Team The right-angled and ascending broadening chart pattern is not one you might choose to trade. I will play with it and provide feedback. The opposite process is called semantic narrowing, with a word taking on a more restricted meaning than it had before. Meaning, the stock price takes out previous higher highs and previous lower lows. I posted something similar last week, but I thought it was worth sharing this again. Trade Unafraid evaluates personalized criteria and selects the most favorable option, allowing traders to come out on top. This creates a series of higher interim peaks in price and lower interim lows. Before beginning you have to have a basic understanding of candlesticks. Any news, opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Symmetric Triangle. SepiaGroup.com is an educational site and is not a financial adviser or broker. Additional Strat Info (newly added material to course) Broadening Formation What timeframes and Why (promised I'd add this back on 8/18) (67:24) Broadening Formations and New Script that is Helpful (17:15) Better way to backtest for multi chart backtest (11:29) Likewise, the outside bar is where the subsequent bar's high and low both exceed the prior bar. The Strat is a trading system that can be utilized in any market and time frame, and once you begin to see things from this perspective, it will forever change the way you trade. Tell me how to fix it, or at the very least, tell me where exactly you think I'm wrong. We also use third-party cookies that help us analyze and understand how you use this website. We are well aware of how awful this user interface is. Directional Bars - Directional Bars occur when the current candle takes out one side of the prior candle. I can tell that you have put a lot of labor into it. We do not recommend the use of news as a sole means of trading decisions. This is going to sound like I'm coming down on you or being condescending, but I ask that you please do not take it that way. Leveraging, Many practitioners of The STRAT have experienced triple digit returns over time, often, , where he follows the market every weekday, is a mainstay of Sepia Groups programming. Talc Lawsuits Keeping Lid on Johnson & Johnson (JNJ), Trend Trading: Definition and How Strategy Aims For Profit, Trend: Definition, Types, Examples, and Uses in Trading, Descending Triangle: What It Is, What It Indicates, Examples, Understanding Trend Analysis and Trend Trading Strategies, The Ascending Triangle Pattern: What It Is, How To Trade It. In order to keep the post clean, updates are now found at the very bottom of the thread, Excellent Work. Twitter @rickyzane85. Broadening formations indicate increasing price volatility. These candle types are highly likely reversal points in price action. The stuff I do know has already made a tremendous difference in my trading which is why I wanted to write these in order to give myself a more 'visual' perspective. I loaded it up and noticed when I scan, it shows patterns that are already started(basically you should be getting in the trades already) as it scans once the pattern is a success. It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling. Today's trade was a long in AAPL. Resolved: Release in which this issue/RFE has been resolved. Image by Sabrina Jiang Investopedia2021. This cookie is set by GDPR Cookie Consent plugin. Gordon Scott has been an active investor and technical analyst or 20+ years. Over all, this fits in with the lucid-trend methodology of ripple effects created by the water drops. This is telling me that the aggression has shifted back to the buyers. Rob Smith. The principles of the Strat indicator (and thus the Strat technique) are as follows: . A broadening formation is a price chart pattern identified by technical analysts. World Bank DocumentEDITORS Oxford University Press 2004 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC And Im sure it has been a good learning experience. Casey talks candidly with Rob about the Broadening Formation and his famous creation, The Strat. However, they are good news for swing traders and day traders, whoattempt to profit from volatility rather than relying on directional movements in a market. The material and results shared in these posts are made possible by using Trade Unafraid. The consent submitted will only be used for data processing originating from this website. What Is A Broadening Formation? Learning how to trade on The Strat all comes with practice. Rob Smith is the originator of The STRAT trading method. Bull Wedge. Our forum can be intimidating, if not overwhelming. Having said that, one should look out for how and where it closes in the major timeframe and how the shorter or immediate time frame trend is adapting the price action. Using quantitative analysis that breaks down price action by timeframe continuity, actionable signals, and price discovery broadening formations, The STRAT has been shown to amplify trading results for both short and long-term traders. Investing involves risk, including the possible loss of principal. Benzinga Pro is a financial news and research platform developed in and delivered from Benzingas headquarters in Detroit, Michigan. The decision to buy or sell must be predicated upon a deeper understanding of The STRAT and any other tools at your disposal. I set a first target of a quick 0.10 and then let the second call run with three different exit tactics in place. Read more in the Terms of Use. A high score in the Maturi- scores speak to its track record of a dedicated ty dimension points to the presence of later-stage and coordinated effort to implement AI in govern-tech companies able to provide off-the-shelf prod- ment since the publication of its National AI Strat-ucts for governments to purchase. My friend Trish in Woodstock IL has 3 puppies for sale! An ascending triangle is a chart pattern used in technical analysis created by a horizontal and rising trendline. A broadening formation is a technical chart pattern depicting a widening channel of high and low levels of support and resistance. Cheers to the author! Are you sure you want to create this branch? A broadening formation is an example of a consolidation pattern and a highly useful tool in the prediction of the likelihood of a reversal in the direction of a current trend. Robert Denham ROANOKE COLLEGE Claire Kramsch UNIVERSITY OF CALIFORNIA BERKELEY CHAIR Louise Wetherbee Phelps SYRACUSE UNIVERSITY John Rassias DARTMOUTH COLLEGE James F Slevin Determining the trend direction is important for maximizing the potential success of a trade. Conclude support and resistance level based on the higher time frames appreciation or rejection levels. This is benecial because it allows you to remove all biases & only focus on what we KNOW is occurring within the market at any given time. The charting method has three major elements; Major direction, candle analysis and conclusion of price direction. TheSTRAT is a trading method developed by Rob Smith (@RobInTheBlack). It also shows the nervousness and indecisiveness of the traders. https://benzinga.wistia.com/medias/zoi6e794v3?fbclid=IwAR06RBtG0bimZcgyDuryjd12K7BdbDPCdkrE-O0k3hcT7JvMsk889v8qv3c, Rob Hoffman - Overlay Set For ThinkOrSwim, Rob Smiths TheStrat x ORB with Targets For ThinkOrSwim, Need help with Strat Number Code and hiding some of the numbers, TrickyBear - Range Failure signal #STRAT Inspired For ThinkOrSwim, https://usethinkscript.com/threads/repainting-trend-reversal-for-thinkorswim.183/, https://usethinkscript.com/threads/buy-the-dip-indicator-for-thinkorswim.3553/, https://usethinkscript.com/threads/answers-to-commonly-asked-questions.6006/. The Strat Combo labels (which are made of the 1s, 2s, 3s outlined above) display labels when a Strat Combo occurs. TheSTRAT is a trading method developed by Rob Smith (@RobInTheBlack). Jermaine says that the three things known to be true while trading on The Strat are actionable signals, time frame continuity, and broadening formations. It was the first day I ran a live trade of the still-to-be-named trading platform we are close to releasing. Topics such as geopolitical conflict or a change of direction in Fed policy, or especially a combination of the two, are likely to coincide with such formations. The STRAT method, developed by Rob Smith, is a price action-based charting strategy that analyzes individual candles and how they relate to each other, how they conform to levels of support and resistance, and how they can be traded with other time frames. Upward breakouts did best in the 2000s but worst in the 2010s. Bull Flag. She is a library professional, transcriptionist, editor, and fact-checker. Broadening Formation is a chart pattern consisting of 2 trendlines. For example, the S&P 500 has consistently moved higher over the long term; therefore, the formations are more common at times when market participants have begun to process a series of unsettling news topics. An example of data being processed may be a unique identifier stored in a cookie. In fact, elections happen to be a big factor in the formation of a megaphone stock pattern. The charting method has three major elements; Major direction, candle analysis and conclusion of price direction. A broadening formation is also knows as a megaphone pattern. I've made a lot of changes and updates and added a few more studies! Knowledge should be collaborative and shared, not behind a paid wall. In this video you will learn how to draw a broadening formation. The cookies is used to store the user consent for the cookies in the category "Necessary". After a big loss in options trading, he decided to take a break and do some research on ways to better his trading game. Within this disk, smaller clumps of gas and dust began to form, eventually becoming . The STRAT Method Broadening formations are a universal principle of the STRAT method, developed by Rob Smith. He believes in eliminating market noise, and focuses on aspects that we can define, quantify, analyze and execute on. Jermaine says that he sometimes even stops at a $10 loss and calls it a day, until tomorrow. Additionally, on Benzinga Pro, you can easily have all your charts set up as recommended by Jermaine. Hey, check out the top post again my friend. Once again, you always have to start out with the larger timeframes and see who is most likely to be in control. I want to be able to visually depict the scenarios and four basic reversals correctly before I move onto more complex scenarios like rev strat or hammers or shooting stars. Stay in the know with Benzinga Pro news, product updates, and promotions. The user can independently toggle on/off the Strat numbers, boxes around the Strat Combos, and Hammer and Shooter shapes. If you are new, or just looking for guidance, here are some helpful links to get you started. Bar Analysis seek out for a three major types of bars. Rob Smith is the originator of The STRAT trading method. Jermaines trading career began about two years ago on an easy to begin platform.