Strat Learning Hub

📘 Tutorials

Learn about timeframes, reversals, and actionable signals.

1. What is TheStrat?

TheStrat is a price-action trading framework developed by Rob Smith. It simplifies price into three scenarios: inside bars (1), directional bars (2), and outside bars (3). You combine these with multiple-timeframe analysis to confirm bias and find high-probability entries.

The approach is consistent and rules-based—great for scalps, day trades, or swings—on any timeframe.

TheStrat opening slide with quote — “We don’t think, we know…” — Rob Smith

2. Candlestick Overview

Before you begin, you need the basics. Candlesticks have five key parts:

Anatomy of a candlestick — Sample of Candlestick Overview

WICKS
1 — Top wick / high: the highest price during the candle’s timeframe.
2 — Bottom wick / low: the lowest price during the candle’s timeframe.

FILL (Body)
3 — Open: the price at the start of the timeframe (top or bottom of the body depending on color).
4 — Close: the price at the end of the timeframe (top or bottom of the body depending on color).
5 — Color: Green/Hollow = open below close → price up. Red/Full = open above close → price down.

3. Scenarios and Price Action

Scenario 1: Inside Bar (1)
Current candle is fully inside the prior candle’s range → balance/equilibrium. Wait for a directional break before entering.

Inside bar example — Scenario 1 — Consolidation inside prior range

Scenario 2: Directional Bar (2)
2 Down: takes out the previous low only. 2 Up: takes out the previous high only. Trade 2s with continuation in the same direction.

2 Down directional example — Scenario 2 Down — Takes out previous low

2 Up directional example — Scenario 2 Up — Takes out previous high

Scenario 3: Outside Bar (3)
Takes out both sides of the prior bar. Look for confirmation and direction on your trigger timeframe before trading.

Outside bar example — Scenario 3 — Takes out both prior high and low

4. Timeframe Continuity & Broadening Formations

Timeframe Continuity (TFC/FTFC): When higher and lower timeframes align in the same direction, probability improves and bias is clearer.

Full timeframe continuity up example — Full Timeframe Continuity — Upside

Full timeframe continuity down example — Full Timeframe Continuity — Downside

Broadening Formations (BF): A series of higher highs and lower lows over time — the range “broadens.” Draw on any timeframe to spot exhaustion and reversals.