The Ultimate STRAT Combos Guide: Master Every Setup Like a Trading Pro š
The STRAT trading method is a powerful framework for decoding price action and identifying winning setups. Whether youāre new to trading or a seasoned professional, understanding STRAT Combos can revolutionize your strategy. Letās dive into everything you need to know to dominate the charts! š
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What Are STRAT Combos?
STRAT Combos are unique candlestick patterns that reveal price continuity or reversals. These patterns help traders pinpoint entries, define targets, and ride momentumāwhether in bullish or bearish markets.
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Breakdown of STRAT Combos (Directly from the Charts) š
1ļøā£ 2-1-2 Bullish Continuation
Setup:
An inside bar (1) forms after a pullback, followed by a bullish breakout (2).
Entry: Place buy orders above the high of the inside bar.
Target: Project the previous range upward.
Key Insight: Volume confirmation during the breakout is crucial.
2ļøā£ 2-1-2 Bearish Reversal
Setup:
A bullish candle (2) leads to an inside bar (1), followed by a bearish breakout (2).
Entry: Short below the low of the inside bar.
Target: Nearest support level.
Pro Tip: Watch for rejection wicks at the breakout level for added confidence.
3ļøā£ 3-1-2 Bullish Reversal
Setup:
A broadening bar (3) forms, consolidating into an inside bar (1), and then breaks out bullishly (2).
Entry: Enter above the high of the inside bar.
Target: Measure the broadening range and project it upward.
Key Insight: Works well near strong support levels.
4ļøā£ 3-1-2 Bearish Reversal
Setup:
A broadening bar (3) consolidates into an inside bar (1), followed by a bearish breakout (2).
Entry: Place sell orders below the inside barās low.
Target: Prior lows or nearest support.
Pro Tip: Combine with volume analysis to filter out false signals.
5ļøā£ 2-1-2 Bearish Continuation
Setup:
An inside bar (1) follows a bearish candle (2), with a continuation into another bearish bar (2).
Entry: Below the inside barās low.
Target: Fibonacci extensions or key support levels.
Key Insight: These setups thrive in strong downtrends.
6ļøā£ 1-Bar Rev STRAT
Setup:
A single bar breaks one way and sharply reverses within the same candle.
Entry: Enter on the reversal break.
Target: Use the candle range as your profit projection.
Pro Tip: Look for these during high-impact news events.
7ļøā£ 3-2-2 Bullish Reversal
Setup:
A broadening bar (3) is followed by a bearish bar (2), which reverses into a bullish bar (2).
Entry: Above the high of the bullish bar.
Target: Previous resistance or Fibonacci retracement levels.
Key Insight: Common after false breakouts. Confirm with volume.
8ļøā£ 3-2-2 Bearish Reversal
Setup:
A broadening bar (3) forms, followed by a bullish bar (2) that reverses into a bearish bar (2).
Entry: Below the bearish barās low.
Target: Prior support levels.
Pro Tip: Often appears at resistance after failed breakouts.
9ļøā£ 2-2 Reversal Bullish
Setup:
A bearish bar (2) reverses into a bullish bar (2).
Entry: Above the bullish barās high.
Target: Nearest resistance level.
Key Insight: Effective in oversold conditions.
š 2-2 Reversal Bearish
Setup:
A bullish bar (2) reverses into a bearish bar (2).
Entry: Below the bearish barās low.
Target: Nearest support.
Pro Tip: Ideal for overbought markets.
1ļøā£1ļøā£ 2-2 Continuation Bullish
Setup:
A bullish bar (2) is followed by another bullish bar (2).
Entry: Above the second barās high.
Target: Fibonacci extensions or resistance.
Key Insight: Momentum-driven; wait for volume confirmation.
1ļøā£2ļøā£ 2-2 Continuation Bearish
Setup:
A bearish bar (2) is followed by another bearish bar (2).
Entry: Below the second barās low.
Target: Key support or Fibonacci levels.
Pro Tip: Best for strong trending markets.
1ļøā£3ļøā£ Rev STRAT 1-2-2 Bullish
Setup:
An inside bar (1) consolidates, followed by a bearish breakout (2) that reverses into a bullish bar (2).
Entry: Above the bullish barās high.
Target: Resistance or previous swing highs.
Key Insight: Common after strong downtrends.
1ļøā£4ļøā£ Rev STRAT 1-2-2 Bearish
Setup:
Inside bar (1) consolidates, followed by a bullish breakout (2) and a bearish reversal (2).
Entry: Below the bearish barās low.
Target: Support or previous lows.
Pro Tip: Works best during pullbacks in trending markets.
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Master STRAT Trading with These Key Tips š
Understand Candle Types: Learn how inside bars (1), trend bars (2), and broadening bars (3) interact.
Volume Is Critical: Confirm all patterns with volume surges.
Multi-Timeframe Analysis: Use higher timeframes for trends and lower ones for entries.
Risk Management First: Set stop-losses using ATR or structural levels.
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Common Pitfalls to Avoid ā ļø
Jumping in too early without confirmation.
Ignoring higher timeframe trends.
Skipping backtestingāalways practice on historical charts first.
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Quick Takeaways:
ā Understand inside, trend, and broadening bars.
ā Focus on clean patterns backed by volume.
ā Combine with broader market trends for higher accuracy.
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š¬ Which STRAT combo has worked best for you? Drop your thoughts below!
