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:
Attached Image (click to enlarge)
2
Trading TheStrat / Rob Smith's Method
- #209
- Jun 26, 2026 8:21pm Jun 26, 2026 8:21pm
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
{quote} Hi there, i was just wondering, do you have a "go to" set up for the strat? There are so many different ways people use it. Thanks
Poetically and ironically, that is absolutely funny and appropriate as in go to (2-2), moving on.
As a trend trader, I like it, but I see many posts about reversals set ups which distract me from the main mission.
Let's look at Gold on 1-hour for yesterday; many 2's up are showing from Tokyo open, buy above and hold will be profitable.
Buy level begins about 4,020, right, see it?
Then during early Europe trading, there is 2-2, followed by 1 (inside bar) and 3 (outside engulfing bar) also UP direction.
Somewhere from 4,050 to 4,100 is a great move for gold traders, no matter the size.
I don't know what type of trader you are or which sessions you can trade, but surely that helps?
MAY THE TREND BE WITH YOU
Strat Pattern Combinations While understanding individual candle scenarios is important, the real power of The Strat comes from recognizing combinations of these scenarios. These multi-candle patterns provide specific trade setups with defined entry and exit points. Below are some of the most important pattern combinations that Strat traders use.
The 2-2 Pattern: Trend Continuation:
Formation: Two consecutive directional bars in the same direction (2 up followed by 2 up, or 2 down followed by 2 down).
Trading the 2-2: This pattern indicates strong momentum and trend continuation. Traders enter on the break of the second directional bar's high (for bullish 2-2) or low (for bearish 2-2). The pattern suggests that the trend is likely to continue, making it a high-probability continuation setup.
MAY THE TREND BE WITH YOU
- #210
- Jun 26, 2026 8:38pm Jun 26, 2026 8:38pm
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
Here is the same Gold 1-hour chart with sessions and thick bars.
I had forgotten the setting, here it is if anyone needs it.
I had forgotten the setting, here it is if anyone needs it.
MAY THE TREND BE WITH YOU
- #211
- Jun 28, 2026 10:40pm Jun 28, 2026 10:40pm
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
Great to see so many Strat aficionados here! I wrote a TV script but cannot publish it as I do not have a paid subscription, maybe on Black Friday in November. I could share here by copy & paste if anyone is interested and can use Pine Editor to compile.
Here is what it looks like, can you see the function of slightly different color coding from regular Strat indicators?
Trade accordingly
Here is what it looks like, can you see the function of slightly different color coding from regular Strat indicators?
Trade accordingly
MAY THE TREND BE WITH YOU
- #212
- Jun 29, 8:10pm (34 hr ago) Jun 29, 8:10pm (34 hr ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
MAY THE TREND BE WITH YOU
- #213
- Jun 29, 8:28pm (34 hr ago) Jun 29, 8:28pm (34 hr ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
Regarding the last post, I will share an example of a real trade using that analysis technique. I don't think a day trader of forex needs that many timeframes, certainly not as high as monthly; sure, check weekly, daily, and 4-hour like this example. Even a great daily signal, 4-hour, and 1-hour entry should suffice IMHO.
This is the only Weekly Bullish Engulfing so far this year, the Blue bar -
Looking at the Daily, observe previous Engulfing bars that gave opportunities for profit during June alone -
Entry was on the breakout, trend traders must take the risk, also Engulfing, how nice -
Take Profit was set at the ADR(20) and was hit quite quickly, otherwise, I would have left open another day an observe price action.
From the demo account, it has the important data - prices, date, exit. Similar on live account.
Good Luck
This is the only Weekly Bullish Engulfing so far this year, the Blue bar -
Looking at the Daily, observe previous Engulfing bars that gave opportunities for profit during June alone -
Entry was on the breakout, trend traders must take the risk, also Engulfing, how nice -
Take Profit was set at the ADR(20) and was hit quite quickly, otherwise, I would have left open another day an observe price action.
From the demo account, it has the important data - prices, date, exit. Similar on live account.
Good Luck
MAY THE TREND BE WITH YOU
- #214
- Jun 30, 4:58pm (14 hr ago) Jun 30, 4:58pm (14 hr ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
Let's check GOLD for the end of month June 2026, oh look, seems all the green of 2025 has come to an end, rolled over, now showing a solid red 2-2, where to (pun intended) from here?
Speaking of months, let's look at June day by day; anything there that may have helped with your trend bias and intraday trades? the line is 200 SMA from the old days.
I marked some of the obvious helpers of the month, let's go July!
Speaking of months, let's look at June day by day; anything there that may have helped with your trend bias and intraday trades? the line is 200 SMA from the old days.
I marked some of the obvious helpers of the month, let's go July!
MAY THE TREND BE WITH YOU
- #216
- Jul 1, 4:55am (2 hr 5 min ago) Jul 1, 4:55am (2 hr 5 min ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
{quote} Thank you for your detailed response. I suppose one of the reasons The Strat focuses on reversal setups is because they're generally considered safer than trading continuations. Reversals often occur at the edges of a range, whereas continuation trades can carry a higher risk of entering near exhaustion. From what I've learned, the original beginner-friendly Strat approach is to look for Full Time Frame Continuity (FTFC) on the monthly, weekly, daily, and hourly charts, then focus on 2-1-2 and 3-1-2 setups. Sara always seemed to emphasise...
Talk about contradiction; how can you say, "The Strat focuses on reversal setups is because they're generally considered safer" and then quote "Strat approach is to look for Full Time Frame Continuity (FTFC) on the monthly, weekly, daily, and hourly charts"?
I made a whole post on that - https://www.forexfactory.com/thread/...8#post15780878 - clearly, it says:
Why FTFC Matters: When all timeframes align, it significantly increases the probability of a successful trade. FTFC ensures that you're not fighting against the trend on higher timeframes, which is a common cause of losing trades. Many Strat traders will only take trades when FTFC is present, as it filters out lower-probability setups and keeps them aligned with institutional money flow.
And then I posted a profitable FTFC trade example at - https://www.forexfactory.com/thread/...9#post15780909
Why I'm back? Well, when it comes to trading, I have ADHD or maybe short attention span, get distracted by other crazy internet things. I believe the secret with Strat will be patience, stalk the weekly and daily candles and make those day trades or swing trades on 4-hour.
Pretty sure everyone, including me, gets seduced by Strat and give it a go on 15-min and 5-min Gold charts!
Do you use Tradingview or find any good MT 4 indicators? Stick around, it's pretty lonely in here
All the best, charts coming up!
MAY THE TREND BE WITH YOU
- #217
- Jul 1, 5:08am (1 hr 52 min ago) Jul 1, 5:08am (1 hr 52 min ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
{quote}The 2-2 Pattern: Trend Continuation: Formation: Two consecutive directional bars in the same direction (2 up followed by 2 up, or 2 down followed by 2 down). Trading the 2-2: This pattern indicates strong momentum and trend continuation. Traders enter on the break of the second directional bar's high (for bullish 2-2) or low (for bearish 2-2). The pattern suggests that the trend is likely to continue, making it a high-probability continuation setup.
If you use Tradingview, the go to indicator there is Strat Assistant by rickyzcarroll, and the charts look like this; focus on the 3 highlighted examples and the close of the 2nd candle. Are they strong continuation signals? With hindsight, yes, there is some bias to be gained, as they are not completely turned around, I guess.
This is the same chart using my indicator, when the close is in the top half of a 2 down candle, the color will not be strong red, giving a visual clue of possible consolidation or upcoming reversal.
Does that make sense?
Other changes I made, candles to recognise whether #3 candles were Up or Down.
Source code is available as previously mentioned, I hope.
MAY THE TREND BE WITH YOU
- #219
- Last Post: Jul 1, 6:49am (11 min ago) Jul 1, 6:49am (11 min ago)
- Joined Jul 2011 | Status: Gold Again | 10,663 Posts
Thanks for the reply! I think I probably didn't explain myself very well. What I meant was using FTFC on the monthly, weekly and daily to establish the overall direction, then looking for reversal setups on the hourly chart that get you back into alignment with that higher timeframe trend. So, in my mind, you're still trading with FTFC rather than against it. That said, one thing I've struggled with is that people seem to trade The Strat quite differently. Some focus almost exclusively on reversals, while others seem happy to trade continuations,...
You can't really say definitely that say that 2 strong red (or green) will work better, you can only observe what happens in each case, day by day. Here is the EURUSD with some examples for June, maybe easier for me as I have the indicator.
Do you know how to use the Pine Editor? I think I can post the code here and you just copy & paste it into the Editor, and voila, you have the indicator.
Let me know.
MAY THE TREND BE WITH YOU