Don't generally post on this thread but for those interested in this strategy, this is a good example of a broadening formation on the monthly timeframe:
I have created an alert for green 2 downs and red 2 ups, please try it and let me know what you think. This is only to alert you of conflicts for the numbers you still need the other indicators
Good morning fellow strats, hope you are well. I would like to discuss the strat setup sheet by Sarah Strat ( attached) It is not complete. She doesn't mention 2-2 continuations in that sheet.
I asked AI if a 2-2 continuation is a valid setup according to Rob Smith.
On Sarah strat setups sheets theirs no mention of 2-2 cont only 2-2 reversals. But I find many more 2-2 continuations than 2-2 reversals
20 minutes ago. As follows AI response
The 2-2 continuation is a valid and widely recognized setup within the broader Strat community. While some specific "cheat sheets" or older versions of Sarah Strat's materials focus heavily on reversals (2-2, 2-1-2, 3-1-2), the 2-2 continuation is a fundamental part of Rob Smith's original methodology.
Why You See It More Often
Market Nature: Markets trend more often than they reverse. A 2-2 continuation (2u-2u or 2d-2d) simply reflects a trend staying in force.
Timeframe Continuity: Rob Smith frequently uses 2-2 continuations on higher timeframes (Monthly/Weekly) to confirm the "flow" for lower-timeframe reversal trades.
Core Setup Differences
2-2 Reversal: A change in direction (e.g., a 2-down followed by a 2-up). These are popular on setup sheets because they mark clear "actionable signals" at potential pivot points.
2-2 Continuation: Two consecutive candles breaking in the same direction.
Bullish: A 2-up followed by another 2-up (2u-2u).
Bearish: A 2-down followed by another 2-down (2d-2d).
How to Trade the 2-2 Continuation
Entry: Above the high of the second 2-up candle (for bullish) or below the low of the second 2-down candle (for bearish).
Confirmation: It is most effective when it aligns with Full Timeframe Continuity (FTFC), meaning the 2-2 is moving in the direction of the higher timeframe's trend.
Actionability: Even if not listed as a primary "reversal" combo, it is considered an actionable signal because a "2" candle, by definition, is a directional bar that has already breached a previous range.
Would you like to see how to align a 2-2 continuation with Timeframe Continuity for higher probability entries?
AI responses may include mistakes. For financial advice, consult a professional. Learn more
I also clicked on a link that is mentioned and I found a article by Ali Muhammad at Forexbee discussing all the setups. https://forexbee.co/the-strat-patterns/ please check it out, it is good. He also mentions the 2-2 continuation as a valid setup. On his setup sheet (see screenshot) he does have the 2-2 bearish continuation as well as the 2-2 bullish continuation, and if you click on it he discusses it some more.
I would like to make a correction of the statement of trading 2-2 continuations.
Please watch this video of Sarah, it will explain everything
Inserted Video
That being said, as she explains in the above video, price is fractal. Nothing stops you from dropping to a lower time frame to find actionable setups there.
I had to switch over to MT5, please find attached some valuable indicators. I use the i-Sessions to show me where the next 4 hour candle will begin, to be aware of the flip. The 50% alert is to warn me of a possible 3. If the 3 doesn't happen - then that candle is normally a conflict. The SimpleRiskLotPro makes it easy to trade any market, you don't have to calculate the lot size manually.
Regards
