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 (inside the bar, directional bar, and outside bar). By combining these three scenarios, strat trading has made many combos representing a trend reversal or trend continuation in the market.
This article will teach you about the 2-2 reversal patterns in detail and with examples.
Bullish 2-2 reversal pattern
A bullish trend reversal occurs in the market when a 2D candlestick is followed by a 2U candlestick at the end of a downtrend. Price will turn from bearish to bullish direction.
To identify the 2-2 bullish reversal, follow the following steps:
- First, find a bearish downtrend. The price must be making lower lows, or it should be in an oversold condition.
- After the last bearish candlestick or 2 down candlestick, there must form a bullish candlestick or 2 up candlestick showing the strength of buyers. and break of high of previous 2D candlestick will confirm the bullish trend reversal.
Bearish 2-2 reversal pattern
When a 2U candlestick is followed by a 2D candlestick, a 2-2 bearish reversal occurs in the market. This strat pattern will turn the bullish trend into a bearish one.
Here are the few steps that you should follow to find a perfect 2-2 bearish reversal:
- Find a bullish uptrend. Candlesticks will be making higher highs and higher lows.
- After the last 2U candlestick or a bullish candlestick, a 2D or a bearish candlestick will form. The break of low of last 2U candlestick will confirm the 2-2- bearish reversal pattern.
Examples
Here are few examples to learn more:
The bottom line
A 2-2 reversal pattern is also used in the trend alignment timeline in which we check the higher timeframes for trend alignment.
In this reversal setup, we take entry at the break of 2D or 2U candlestick that confirms the 2-2 trend reversal pattern.
I recommend that you backtest this pattern at least 100 times. You should take screenshots of each setup, and then you can analyze them later to find the characteristics of winning and losing patterns.
If you have any questions about the strat, don’t forget to comment below.
The shooter bar shown, its high and low is both higher than previous bar, why its belongs to 2d bar. And its vice versa to hammer bar also….
In the shooter bar, the high must be higher than the previous candlestick’s high. And low must be higher than the previous candlestick’s low. it means higher high and higher low.