The STRAT trading method is a powerful framework for identifying price action setups with precision. Whether you're a beginner or an experienced trader, mastering STRAT Combos can transform your trading strategy. Here's everything you need to know! 🚀
What Are STRAT Combos? 🤔
STRAT Combos are specific candlestick patterns defined by price continuity or reversals. These combinations help traders spot entries, targets, and momentum in both bullish and bearish setups.
All STRAT Combos Explained (Straight from the Chart) 📝
1️⃣ 2-1-2 Bullish Continuation
Setup:
A pullback leads to an inside bar (1).
Breakout to the upside with a bullish bar (2).
Entry: Above the high of the inside bar.
Target: Project the previous range upward.
Key Insight: Look for higher volume on the breakout to confirm the trend continuation.
2️⃣ 2-1-2 Bearish Reversal
Setup:
Inside bar (1) forms after a bullish candle (2).
Followed by a bearish breakout (2).
Entry: Below the low of the inside bar.
Target: Expect the price to revisit the nearest support level.
Pro Tip: Watch for weak rejection wicks at the breakout level to validate the move.
3️⃣ 3-1-2 Bullish Reversal
Setup:
Broadening bar (3) forms.
Inside bar (1) consolidates, followed by a bullish breakout (2).
Entry: Above the high of the inside bar.
Target: Measure the broadening range and project it upwards.
Key Insight: This pattern works best near key support zones.
4️⃣ 3-1-2 Bearish Reversal
Setup:
Broadening bar (3) forms a wide price range.
Inside bar (1) consolidates.
A bearish breakout (2) confirms the trend reversal.
Entry: Below the low of the inside bar.
Target: Nearest support or previous lows.
Pro Tip: Combine with volume analysis to filter out false breakouts.
5️⃣ 2-1-2 Bearish Continuation
Setup:
Inside bar (1) forms after a bearish candle (2).
Continuation with another bearish bar (2).
Entry: Below the low of the inside bar.
Target: Nearest support or Fibonacci extensions.
Key Insight: These patterns often form during strong downtrends.
6️⃣ 1-Bar Rev STRAT
Setup:
A single bar breaks in one direction but reverses sharply within the same candle.
Entry: Enter on the reversal break.
Target: Use the candle range as the profit projection.
Pro Tip: Spot these during high-impact news for strong reversals.
7️⃣ 3-2-2 Bullish Reversal
Setup:
Broadening bar (3) shows price expansion.
A bearish bar (2) follows.
Reversal confirmed with a bullish bar (2).
Entry: Above the high of the bullish reversal bar.
Target: Previous resistance or key Fibonacci levels.
Key Insight: Often appears after false breakouts—use volume to confirm.
8️⃣ 3-2-2 Bearish Reversal
Setup:
Broadening bar (3).
A bullish bar (2) is followed by a bearish reversal (2).
Entry: Below the low of the bearish reversal bar.
Target: Support levels or prior lows.
Pro Tip: This pattern is common at resistance zones after failed breakouts.
9️⃣ 2-2 Reversal Bullish
Setup:
A bearish bar (2) is followed by a bullish reversal bar (2).
Entry: Above the high of the bullish reversal bar.
Target: Nearest resistance level.
Key Insight: Works well in oversold markets.
🔟 2-2 Reversal Bearish
Setup:
A bullish bar (2) is followed by a bearish reversal bar (2).
Entry: Below the low of the bearish reversal bar.
Target: Nearest support level.
Pro Tip: Best used in overbought market conditions.
1️⃣1️⃣ 2-2 Continuation Bullish
Setup:
A bullish bar (2) is followed by another bullish continuation bar (2).
Entry: Above the high of the second bullish bar.
Target: Nearest resistance or Fibonacci extension levels.
Key Insight: Look for strong momentum candles to confirm.
1️⃣2️⃣ 2-2 Continuation Bearish
Setup:
A bearish bar (2) is followed by another bearish continuation bar (2).
Entry: Below the low of the second bearish bar.
Target: Nearest support level.
Pro Tip: Ideal for trading strong trends—don’t fight the momentum.
1️⃣3️⃣ Rev STRAT 1-2-2 Bullish
Setup:
Inside bar (1) shows consolidation.
A bearish breakout (2) is followed by a bullish reversal (2).
Entry: Above the high of the bullish reversal bar.
Target: Resistance or swing highs.
Key Insight: Common after strong downtrends hitting support.
1️⃣4️⃣ Rev STRAT 1-2-2 Bearish
Setup:
Inside bar (1) consolidates.
A bullish breakout (2) is followed by a bearish reversal (2).
Entry: Below the low of the bearish reversal bar.
Target: Support or previous lows.
Pro Tip: Works best in trending markets during pullbacks.
Additional Tips for Trading STRAT Combos 📈
Master Candle Types: Understand how outside bars (3), inside bars (1), and trend bars (2) interact.
Volume Matters: Always confirm moves with a volume surge—weak volume signals indecision.
Use Multiple Timeframes: Combine higher timeframe analysis for trend direction and lower timeframes for precise entries.
Risk Management is Key: Place stop-losses based on ATR or structural levels to avoid unnecessary losses.
Common Mistakes to Avoid ⚠️
Entering Too Early: Wait for clear confirmations before jumping in.
Ignoring Broader Trends: Always trade STRAT Combos in the direction of the higher timeframe trend for better odds.
Skipping Backtesting: Practice identifying these patterns on historical charts before trading live.
Quick Recap: STRAT Combos in a Nutshell 🥜
✅ Understand the candlestick sequence: Inside bars (1), trend bars (2), and broadening bars (3).
✅ Learn key setups like 2-1-2, 3-1-2, and Rev STRAT 1-2-2.
✅ Focus on clean patterns with volume confirmation for higher success.
✅ Combine with risk management and higher timeframe trends.
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💬 Which STRAT combo do you use most often? Drop your answers below! 👇
