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
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