Ali Muhammad
The Strat Patterns is a trend trading method that uses the method of aligning the prices on different timeframes and then trading in that direction. Most of the traders will know that Trend is Your Friend. It’s reality. It is straightforward to follow trend trading using strat patterns. The Strat trading method gives traders a … Read more
A candlestick is an indicator that shows the open, high, low and closing prices of the financial market on the trading chart. Candlestick is invented by Steve Nison. Think of candlestick analysis as a visual representation of the market’s heartbeat on your trading chart. It allows you to easily pinpoint the closing price of a … Read more
The building blocks of the strat trading are the three scenarios: These scenarios explain everything about entry, exit and holding a trade. In this article, I will explain these three scenarios through live examples from multiple timeframes and price patterns that make these scenarios. Understanding these three scenarios is essential for traders because this is … Read more
Introduction Hammer is a candlestick Pattern in which a small body forms at the upper end of the candlestick’s range with a long lower shadow/wick at least three times the length of the body. It is a bullish reversal candlestick pattern. After the formation of the hammer candlestick at the end of the downtrend, the … Read more
Definition Doji is a candlestick pattern with the same opening and closing price on the chart. It represents the indecision in the market and sideways market conditions. When a doji candlestick forms on the chart, it confirms to the retail traders that the institutions and banks are making decisions. The number of buyers is equal … Read more
Introduction Shooter is a candlestick pattern in which a small body forms at the lower end of the candlestick’s range and a long upper shadow. The upper shadow should be at least three times the length of the body. It is a bearish reversal candlestick pattern that turns the bullish trend into bearish. In the … Read more
Definition When neither side of the previous candlestick is taken out by the current candlestick then it makes scenario 1 on the candlestick chart. It is also known as the inside bar. There are three major scenarios that are the building blocks of the market in the strat patterns. Inside bar is scenario 1 in strat … Read more
When only one side of the previous candlestick is taken out by the current candlestick, scenario 2 on the chart occurs. This scenario shows the market trend. From the three scenarios of the strat patterns, scenario 2 tells us about the market’s trend, either bullish or bearish. When both candlesticks are bullish, the price is … Read more
When the current candlestick takes out both sides of the previous candlestick, then it means scenario 3 has been formed on the chart. It is also known as the engulfing pattern or outside bar in trading. In the strat patterns, scenario 3 tells about the expansion of price range and a major trend reversal. The … Read more
Introduction In the strat trading, we will use the three proven methods that work in the market, and we will surely know what happens during the formation of these patterns. And we call them the three universal truths in the strat. When you open the chart of any currency pair, you will see many patterns … Read more
The inside bar is not an actionable signal, but the next candlestick decides the action of market makers. It helps to do the higher timeframe analysis to get high probability trade setups in the strat patterns. In this article, I will explain how an inside bar can be used as an actionable signal and how … Read more
Introduction Hammer and Momo hammer are actionable signals representing a trend reversal and trend continuation, respectively. However, there are a few requirements and rules that a trader must know to trade these two candlestick patterns. In this article, I have explained these rules in detail, so make sure to read the full article without skipping … Read more
Shooter and Momo shooter are candlestick patterns that represent the bearish trend reversal and bearish trend continuation, respectively. Learning these two patterns will help us to find the entry point and take profit levels because these are actionable signals in the strat patterns. In this article, I will explain these two actionable signals, their significance, … Read more
In the strat trading, 2-2 continuation consists of two directional bars in the same direction, either up or down. This represents that the previous trend will continue. We use 2-2 continuation patterns in the strat to determine the future trend on higher timeframes. After aligning the trend on higher timeframes, we can trade accurately on … Read more
In the strat trading, 2-2 reversal is a combination of 2U and 2D candlestick patterns that represent the change of previous trend. 2U means a bullish directional bar, and 2D means A bearish directional bar. According to the strat strategy, the market is made up of only three major scenarios that we have discussed previously … Read more
When an outside bar is followed by a directional bar of the same colour and then an opposite colour directional bar forms, breaking the previous directional bar, a 3-2-2 trend reversal pattern forms in the strat trading. This pattern is a combination of three candlesticks Based on the trend reversal, this pattern is divided into … Read more
When a directional bar is followed by an inside bar, and then a directional bar forms, breaking the inside bar in the direction of the trend, a 2-1-2 strat pattern occurs on the candlestick chart. This is a trend continuation pattern. In the strat trading, based on the direction of trend, 2-1-2 is categorized into … Read more
In the strat patterns, When a directional bar is followed by an inside bar at the end of a trend and an opposite colour, a directional bar forms, breaking the previous inside candlestick in the opposite direction, and then a 2-1-2 reversal pattern forms, this pattern will change the bullish trend into bearish and the … Read more
In strat patterns, when an inside bar is followed by a directional candlestick, and then the price reverses in the opposite direction in the form of another directional bar. A 1-2-2 reversal pattern occurs on the chart. This pattern will change the direction of the prior trend. You can also say 1-2-2 a fakey pattern … Read more
In the Strat patterns, When a 3 outside bar is followed by an inside bar, and then a 2 directional bar breaks inside a candle in the same direction as the previous 3 outside bar candlesticks, then a 3-1-2 continuation pattern forms. It shows that the prior trend will continue. Based on the trend, the … Read more
When an inside bar candlestick is followed by an outside bar, a trend reversal pattern, which is a 1-3 reversal pattern in strat trading, forms on the chart. This pattern is also known as an engulfing pattern. The 1-3 pattern shows that price is expanding, making higher highs and lower lows. It usually forms before … Read more