Core Curriculum

Learn TheStrat

TheStrat is the most empirical, rules-based price action framework in trading. This page covers the core principles you need to understand before you trade.

The Three Scenarios

Every single candle on every chart in existence can be classified as one of three scenarios relative to the prior candle. This is the atomic unit of TheStrat.

1
Scenario 1

Inside Bar

The current candle is entirely contained within the range of the prior candle. It does not take out the high or the low. This represents compression and indecision — the market is coiling.

  • Compression / Coiling
  • Reduced volatility
  • Precedes expansion
2
Scenario 2

Directional Bar

The current candle takes out ONE side of the prior candle's range — either the high (2-Up) or the low (2-Down). This is directional commitment.

  • Directional commitment
  • Breaks one extreme
  • Trend continuation or start
3
Scenario 3

Outside Bar

The current candle takes out BOTH the high and low of the prior candle. This is a broadening formation — maximum volatility and price discovery.

  • Maximum volatility
  • Both extremes broken
  • Price discovery / reversal

Full Time Frame Continuity (FTFC)

The single most important concept in TheStrat for swing traders

FTFC occurs when the Monthly, Weekly, and Daily candles are all scenario 2 in the same direction. When all timeframes align, the probability of a sustained move increases dramatically.

For swing traders, this is the most powerful filter available. A daily signal in FTFC has a significantly higher win rate than a daily signal trading against the higher timeframe trend.

Bullish FTFC: Monthly 2-Up, Weekly 2-Up, Daily 2-Up — all timeframes expanding to the upside.

Bearish FTFC: Monthly 2-Down, Weekly 2-Down, Daily 2-Down — all timeframes expanding to the downside.

The Five Actionable Signals

TheStrat identifies five specific patterns that create objective, actionable entries. These are not opinions — they are measurable, backtestable events.

2-1-2 Reversal

Directional, inside bar, then reversal in opposite direction. The classic pattern.

2-1-2 Continuation

Directional, inside bar, then continuation in the same direction.

3-1-2 Reversal

Outside bar, inside bar, then directional. A broadening formation reset.

3-2-2 Reversal

Outside bar followed by two directional bars. Momentum reversal.

PMG (Prior Month Gap)

Gap through a prior timeframe extreme. A powerful institutional signal.

More Content Coming Soon

Detailed breakdowns with chart examples, video walkthroughs, and interactive pattern drills are being developed. In the meantime, start testing what you know.

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