TheSTRAT Patterns

Rob Smith's (@RobInTheBlackTheSTRAT is a trading method developed over a 30 year career in the market.

TheSTRAT is a multi-timeframe strategy that has three major components:

  • Inside Bars - Inside Bars occur when the current candle falls completely within the prior candle.
  • Directional Bars - Directional Bars occur when the current candle takes out one side of the prior candle.
  • Outside Bars - Outside Bars occur when the current candle takes out both sides of the prior candle.

There are also a few important principles to keep in mind:

  • Time Frame Continuity - Price direction is best assessed by looking at multiple timeframes rather than moving averages or other lagging indicators. The ideal situation occurs when all time frames point in the same direction, which is known as Full Time Frame Continuity.
  • Broadening Formations - The emergence of Directional Bars and Outside Bars create Broadening Formations that fit into a triangle and ultimately lead to reversals or expansions where trading opportunities may be present.
  • Inside Bars - Inside Bars are the key decision point when the market reaches equilibrium and must decide where prices are going in the immediate future.

TheSTRAT has many different reversal, expansion and continuation patterns that are built into the TrendSpider platform.

TheSTRAT Patterns

You can access these indicators in a few easy steps:

  1. Click on the ... next to Patterns.
  2. Select the All Patternsdropdown next to the Search Field.
  3. Click on TheStrat.
  4. Select the Pattern you'd like to apply to the chart.
  5. Click Apply.

There are more than 20 different patterns to choose from:

  • 1-2D Inside Break
  • 1-2U-2D Inside Reversal
  • 1-3-1-2D Volatility Expansion
  • 2D-1-2D Measured Move Reversal
  • 2D-2D Continuation
  • 2D-2D Shooting Star Momentum Continuation
  • 2U-1-2D Reversal
  • 2U-2D Reversal
  • 2U-2D Shooting Star Reversal
  • 3-2D Range Expansion Continuation
  • 3-2U-2D Broadening Reversal
  • 1-2D-2U Reversal
  • 1-2U Inside Break
  • 1-3-1-2U Volatility Expansion
  • 2D-1-2U Reversal
  • 2D-2U Hammer Reversal
  • 2D-2U Reversal
  • 2U-1-2U Measured Move Reversal
  • 2U-2U Continuation
  • 2U-2U Hammer Momentum Continuation
  • 3-2D-2U Broadening Reversal
  • 3-2U Range Expansion Continuation