The Strat Cheat Sheet: All Combos & Patterns Explained (Free PDF)

The Strat Patterns are simple, but keeping track of all the combos, rules, and setups becomes overwhelming. That’s exactly why I am creating this Strat Patterns Cheat Sheet. To understand and trade them correctly you have to make sure you spot the strat pattern as soon as they form and know the rules where to put your entries and stop losses.

In this article I am going to walk you through concepts and methods you must know before trading them. You will learn what they are, all their combos like 2-1-2 , 3-1-2 etc and related concepts like PMG, FTFC etc.  Also at the end I am giving you a Strat Patterns Cheat Sheet PDF you can download and refer to any time you need. 

The cheat sheet includes everything we are discussing in this article. To get the best out of this Strat Patterns Cheat Sheet I encourage you to not only read them but also practice these patterns one by one. So make sure to read till the end and download the PDF cheat sheet for free.

What is The Strat?

The Strat is a trading strategy developed by Rob Smith, a seasoned trader, for simplifying the price action of the market by creating three simple scenarios and multiple combos. 

Using this strategy takes other complex indicators out of the picture and presents you with simple explanations of the market movement. Unlike other trading methods, its concepts are simple like only 3 possible scenarios and timeframe continuity. 

That is why two traders looking at the same chart will always identify the same Strat pattern. This strategy works for almost all the markets be it Forex, Crypto, Stocks, etc. The Strat is short for ‘The Strategy’ – Rob Smith’s name for his 3-scenario-based trading method.

The Three Scenarios

According to Rob Smith’s The Strat there are only three possible scenarios in which a trading market can move. There is no other possibility .Just these three scenarios . And this is the simplicity of this method as well. It does not need you to learn complex pattern detection, just master these 3 scenarios and you are good to trade The Strat. All other combos and terms like PMG , FTFC etc are also built upon these three scenarios. The scenarios are defined based on the relation of the current candle with the previous candle. Let’s Talk about these scenarios one by one. 

Scenario 1:

Scenario 1 in The Strat pattern happens when the current candle forms totally within the range of the previous candle. Its high is lower than the high of the previous candle and low is higher than the low of the previous candle. This setup looks exactly like an inside bar where the previous candle acts as the mother candle and the latest candle is the baby candle. For example in this image you can see the candle is labeled as ‘1’ bar because of its formation within the range of the previous candle.

Whenever this scenario forms it represents the pause in the market momentum and we can expect a breakout in either direction after it. This scenario sets a stage for the formation of combos like 3-1-2 , 2-1-2 etc. 

Scenario 2:

Scenario 2 is the formation of directional bars on the chart which happens when the current candle takes out the high or low of the previous candle, not both. This is the indication that there is a trend going on in the market and it is the most common scenario and can form after any of three scenarios. It is labelled as a ‘2’ bar. There are two sub types of scenario 2 .

Subtype 1 : 2U

A 2U happens when the current candle takes out the high of the previous candle to indicate a strong bullish momentum. This happens mostly in the bullish continuation and reveals combos like 2-1-2, 1-2-2 etc. The scenario is labeled as the 2U bar as you can see in the image above.

Subtype 2 : 2D

A 2D strat scenario is formed when the market takes out the previous candle’s low. This is the representation of a bearish moment and it happens when there is strong seller sentiment in the market. 

As you can see in the image the candle is marked as 2D because it is breaking the low of the previous candle. It is mostly found in the combos like 2-2 , 2-1-2 bearish reversals.

So basically scenario 2 is momentum based and it signifies the strength of buyers or sellers based on which side the next candle takes out. 

Scenario 3: Outside Bar

Scenario 3 of The Strat patterns forms an outside bar candle in which the current candle fully engulfs the previous candle’s range. For a valid scenario 3 the high of the current candle should be higher than the previous candle’s high and low of the current candle should be below the low of the previous candle. 

If a scenario 3 is spotted on a higher timeframe like D then on lower timeframes like 5 min there is broadening formation. In the outside bar the close of the latest candle matters a lot. If the market closes near the high of the previous candle then the buyer won and if it closes near the low of the previous candle then it shows the seller momentum is greater. In this image you can see I have marked out scenario 3. It is represented as a ‘3’ bar in the 3 strat scenarios. While working with Strat patterns keep in mind that it is the least common but shows the most volatility.

The Strat Combo Sheet (All Patterns)

This Strat combo cheat sheet includes all the combos that are formed on the basis of scenarios we have discussed above. Since you already know about the 3 possible scenarios this is the perfect time to grasp the combos understanding. Each Strat combo has two variants. One bullish and one bearish, there are continuation combos as well .In Strat combo all the candles matter a lot. The latest candle acts as a trigger signal while the prior candles build up the pattern. There are 7 most important combos in Strat patterns. Let’s discuss each combo one by one.

2-2 Continuation:

In a 2-2 Continuation, the market keeps moving in its current direction. The 2-2 Continuation has a bullish and bearish version. If the market is moving in a bearish trend and 2D-2D bearish Combo forms in which both latest candles take out the low of the previous candles, then it means the market will continue to move in the bearish direction. Similarly if the market is going in the Bullish direction and 2U-2U Strat Combo forms then this means the market will continue to move in the bullish direction. In this image  below you can see the formation of both the Bullish and bearish 2-2 Combo. You can also interact with the chart or play the animation again to understand how it works. This combination becomes very reliable when it aligns with the full timeframe continuity.

2-2 Reversal:

In a 2-2 Reversal, the market flips its direction and the trend changes. There are two versions of 2-2 Reversal Strat combo. When a 2U-2D forms it means the market is likely to flip from bullish bias to bearish. The first 2U candle takes out the high of the previous candle and then the next 2D candle takes out the low of the 2U candle. Similarly the 2D-2U combo represents a bullish reversal from bearish direction. In 2D-2U the 2D candle takes out the low of the previous candle and then the 2U candle takes out the high of the 2D candle. 2-2 reversal pattern should always be traded with high time frame confirmation and a key level like a supply and demand zone or FTR. In the image below you can clearly see the formation of 2-2 reversal pattern for both versions.

2-1-2 Continuation:

2-1-2 Continuation is a 3 candle Strat combo in which first there is the formation of a directional 2 bar then there is 1 inside bar and then again a 2 directional bar. This is a classic trend -> rest -> continue pattern. This combo has two variations. Both these versions are most reliable when combined with FTFC. 

2-1-2 Bullish continuation:

In 2-1-2 Bullish continuation first there is the formation of a 2U candle which represents the buyers momentum, then the market pauses and forms an inside bar showing no clear direction. When there is another 2U which takes out the high of the inside bar candle this clearly shows that buyers have regained control and now the market will continue in the bullish direction. Please see the image to clearly understand how the 2-1-2 Bullish continuation combo forms and how the market behaves after its formation.

2-1-2 Bearish continuation:

In 2-1-2 bearish continuation combo first the market forms a 2D directional bar which shows the sellers’ conviction then there is the formation of 1 bar(inside bar) which shows the pause phase in the market  and then again there is the formation of 2D breaking the low of inside bar which shows the bearish trend is going to continue because the sellers are now back in control of momentum. In the image see how the 2-1-2 bearish continuation pattern forms. 

2-1-2 Reversal:

In 2-1-2 reversal combo market changes its direction after the formation of this combo. The initial 2 is the momentum candle then in 1 bar there is a pause in the market and then again 2 bar takes out the high of 1 bar but in the opposite direction of the first 2 bar. This combo has two types and works best with FTFC(full timeframe continuity)

2-1-2 Bullish reversal:

In 2-1-2 bullish reversal first the market makes 2D in which it takes out the low of prior candle and it shows sellers are in momentum . Then market makes 1 (inside bar) which represents the pause in the market and then finally with the formation of 2U market takes out the high of 1 candle and buyers gain control reversing the trend from bearish to bullish. It works best at key levels like demand zones, bullish order blocks and FVGs.

2-1-2 Bearish Reversal:

In 2-1-2 Bearish reversal combo market reverses from a bullish trend to bearish trend. First of all there is the formation of 2U in which the market takes out the high of the previous candle. Then there is the formation of 1 which represents the pause in momentum of buyers and finally with the formation of the 2D market takes out the low of 1 candle and now the momentum shifts from buyer to seller after the pause.It works best at key levels like supply zone, bearish order blocks and FVGs.

In the chart you can clearly see the formation of both the bullish and bearish 2-1-2 reversal

3-1-2 Reversal

In 3-1-2 reversal combo the market flips its direction after the formation of this strat combo. It is a 3 candle combo in which the first one is a 3(outside bar) which takes out both the high and low of the previous bar. This shows that both buyer and sellers are actively pushing the market in both directions but no clear direction. When a 1(Inside Bar) bar forms right after the 3 bar it indicates that now the market has entered an indecision phase and the market is now squeezing. Then lastly when the 2 direction bar forms and takes out either the low or high of 1 bar it means now either buyers or sellers have gained control of the market and the market is going to flip the trend bias. This combo has 2 versions and works best with the confirmation of FTFC at key levels.

3-1-2 Bullish reversal:

In 3-1-2 Bullish reversal first there is the formation of a 3 candle which shows there is very high volatility in the market but no clear direction that is why it is making this outside bar. Next when the 1 forms it shows that now the volatility is squeezing and the market is ready for reversal to hunt new liquidity areas. Finally when the 2U candle forms and takes out the high of the 1 bar (inside bar) then it means that buyers have now finally taken control and now the trend is going to be reversed from bearish to bullish. It works really well at key levels like the demand zone, the Bullish order block or bullish fair value gap.  

3-1-2 Bearish Reversal:

In 3-1-2 bearish reversal market reverses from a bullish trend to bearish trend. First of all, the market makes a 3 candle (outside bar) which fully takes out the high and low of previous candles. This represents a high amount of aggression from both buyers and sellers. Then the market makes a 1 bar and fails to take out the high and low of 3 bar. In this phase the market is squeezing and no one has control of momentum. Finally when the market takes out the low of 1 bar (inside bar) with a strong bearish candle the sellers take control and the market moves in the bearish direction. It works best at key levels like supply zones, bearish order blocks or bearish fair value gaps.

In the chart you can see the formation of both the bullish and bearish 3-1-2 reversal.

1-2-2 rev Strat:

1-2-2 rev strat is one of the most powerful Strat Combos. In the combo first of all an inside bar forms. Then the market takes out one side of the inside bar. Here, traders assume a breakout is happening and enter in that direction placing their stop losses on the other side but on the very next candle the market makes another 2 directional bar taking out the opposite side and trapping the traders by hitting their stop losses. This is the reason for its effectiveness because it is fueled by the liquidity of stop losses. This combo also has 2 versions.

1-2-2 Bullish Rev Strat:

In 1-2-2 Bullish rev strat market first makes a 1 bar (inside bar) in which the market is indecisive. After this the market makes a 2D directional bar taking out the low of the inside bar. Here traders think sellers are gaining momentum and they place sell orders putting their stop losses above the high of 2D candle. Now in the next candle market fully reverses and forms a 2U bar taking out the high of the 2D candle, hitting their stop losses. This newly created liquidity gives all the more reason for buyers to push the market further in the bullish direction and trend reverses from bearish to bullish. This pattern works really well at key levels like a demand zone, order block or Bullish FVG. In this image you can see how it forms and understand how it forms in the market.

1-2-2 Bearish Rev Strat:

In 1-2-2 Bearish rev Strat market first of all makes a 1 bar showing a pause phase in the market followed by a 2U candle which takes out the high of inside bar convincing traders the buyers have gained momentum. So here a lot of traders place buy orders and place stop losses just below the low of 2U bar. In the next candle market takes a reversal and takes out the low of 2U bar by forming a 2D bar. During this the stop losses of retail traders also get hit and this creates selling pressure using which sellers push the market in the bearish direction. This pattern works really well on key levels like a supply zone, bearish FVG or a bearish order block.

In the image you can see how the 1-2-2 Bullish and Bearish Rev Strat forms in the market.

3-2-2 Reversal 

In 3-2-2 Reversal strat combo market reverses its direction. It signals exhaustion of a prolonged trend in the market and is less common than other combos but has a very high impact when it forms. This is a three candle combo in which the first candle is a 3 taking out the high and low of the previous candle. This shows a high amount of volatility with both buyers and sellers trying to push the market in their direction. There is formation of 2 direction bar in one direction which shows one side gaining the momentum and then there is the formation of another directional 2 bar which takes out the opposite side of the first 2 bar reversing the market bias as trend gets changed. This combo has two variations and it works really well when aligned with FTFC.

In the image below you can clearly see the formation of a 3-2-2 bullish and bearish reversal. 

3-2-2 Bullish Reversal:

A 3-2-2 Bullish reversal combo forms when there is the formation of a 3 bar (outside bar) followed by a 2D bar which takes out the low of 3 bar. This 2D bar indicates sellers gaining momentum but then on the next candle a 2U candle forms taking out the high of the 2D candle. This means the trend where sellers were dominating gets reversed and a bullish trend starts. This is a quite rare combo but becomes very effective when combined with a key level such as a demand zone, a bullish order block or FVG. 

3-2-2 Bearish Reversal:

A 3-2-2 Bearish reversal strat combo occurs when the market first makes a 3 bar (outside bar). Then there will be a formation of 2U which takes out the high of 3 bar indicating the conviction of buyers. But on the very next candle market takes out the low of the 2U candle forming a 2D bar which indicates the reversal of trend from bullish to bearish. This combo works really well at key levels like a supply zone, bearish order block or FVG. 

Strat Combos Master Reference Table

Combo	Sequence	Type	Bullish Setup	Bearish Setup
2-2 Continuation	2 → 2 (same direction)	Continuation	2U → 2U	2D → 2D
2-2 Reversal	2 → 2 (opposite direction)	Reversal	2D → 2U	2U → 2D
2-1-2 Continuation	2 → 1 → 2 (same direction)	Continuation	2U → 1 → 2U	2D → 1 → 2D
2-1-2 Reversal	2 → 1 → 2 (opposite direction)	Reversal	2D → 1 → 2U	2U → 1 → 2D
3-1-2 Reversal	3 → 1 → 2	Reversal	3 → 1 → 2U	3 → 1 → 2D
1-2-2 Rev Strat	1 → 2 → 2 (opposite direction)	Reversal	1 → 2D → 2U	1 → 2U → 2D
3-2-2 Reversal	3 → 2 → 2 (opposite direction)	Reversal	3 → 2D → 2U	3 → 2U → 2D

Now that you have understood all the strat combos its time to grasp other strat like the FTFC using which you can filter out which combos to trade and which ones to avoid. 

What is Full Timeframe Continuity:

FTFC stands for Full Timeframe Continuity. It is the most important strat concept which means that while trading a Strat combo there should be an alignment of all timeframes in the same direction. For example when we want to trade bullish reversals or bullish continuation combos then the higher timeframe like monthly , weekly, daily and hourly should all show a formation of 2U which represents a full bullish continuity. Similarly when looking for sell trades the higher timeframes Monthly weekly daily and hourly should show a 2D formation showing a continuity of bearish trend across all timeframes. When we trade strat combos with FTFC we get high probability setups. 

How to check the timeframe continuity in the strat?

For a valid full timeframe continuity you should always start at the monthly timeframe. And check if there is a formation of 2 bar. If not, then you stop there. If yes then you would go to a lower timeframe like weekly and check the same thing . For example, if there was a 2U monthly then the week should also show a 2U formation. After checking weekly you would go to the daily timeframe and check the same thing and look for the formation of a 2U bar. Then after that you should move to your trading time frame like 4H or 1H. When and only when all the upper timeframes will have the same directional bar forming only then can we say that there is timeframe continuity. And we can look for the trades in that direction. Also keep in mind that formation of scenario one is not a stop signal because it can take out one side of the previous candle forming a directional bar. So you should wait for its completion. If even one of these timeframes shows a 3 bar forming then there will be no timeframe continuity.

For example in the table below you can see how the timeframe continuity works.

Timeframe	Scenario	Direction	Continuity
Monthly	2U	⬆️ Bullish	✅
Weekly	2U	⬆️ Bullish	✅
Daily	2U	⬆️ Bullish	✅
4H	1	⏸️ Pause	⚠️ Waiting
1H	2U	⬆️ Bullish	✅

From the table above you can see how all time frames are aligning and now you can look for high probability bullish trades. For a complete understanding of time frame continuity you can read our guide on Timeframe Continuity in The Strat.

Now let’s look at the key Strat terms you need to know. 

Key Terms In Strat trading:

To fully understand Strat trading you must understand some key terms which we will always use while trading the Strat combos.

Term	Definition
FTFC	Full Timeframe Continuity — all timeframes should be aligned in same direction showing a good momentum
PMG	Pivot Machine Gun — consecutive bars which break prior highs or lows showing a one sided momentum
TTO	Triangle They Out — a broadening formation used to hunt stop losses by breaking previous structures
Rev Strat	Reversal Strat — the 1-2-2 failed breakout reversal pattern which helps in stoploss hunting
In-Force	A signal that has been triggered and is currently valid so you can look for trade opportunity
Broadening	Expanding price range — higher highs and lower lows forming mostly a 3 bar at high time frame is a broadening formation on lower timeframes.
Hammer	Bullish candle with a long lower wick showing rejection of lows. It shows that sellers tried to take control but buyers pushed them back up and gained control
Shooter	Bearish candle with a long upper wick showing rejection of highs and sellers momentum
Magnitude	The expected size or distance of a price move
Actionable Signal	A pattern with a clear trigger, entry point and target. You should trade it after its alignment with timeframe continuity
FTR	Failure to Return — price fails to return to a key level, confirming directional strength

Now that you understand the key terms used in the strat lets talk about how you can use this Strat trading cheat sheet in yous trading.

How to Use This Cheat Sheet in Live Trading:

To make sure you always get the best out of this strategy you should follow this simple 7 step approach. 

Step 1

First of all you should open the higher timeframes like Monthly, weekly and daily. And check which scenario is forming at those timeframes. Is it a 1, 2U, 2D or 3?

Step 2

Verify the FTFC; if all time frames are showing a same directional bar then you have timeframe continuity; if not then there is no FTFC.

Step 3

After the FTFC is confirmed then you should go to your trading timeframe and look for a strat combo formation. 

Step 4

Keep in mind you should only look for combos that are complemented by the higher time frame continuity.

Step 5

Next you should find a key level for example if you have confirmed the bullish FTFC and you and found a 2-1-2 bullish reversal combo then you should also confirm that this combo is forming at a key level like a demand zone , a bullish order block or a FVG.

Step 6

Setup your entry at the break of the final candle’s high or low. But wait for the candle to close before entering. 

Step 7

Set your stop loss on the  other side of the combo pattern. And target the previous high/low or next key level. For take profit.

Download the Strat Trading Cheat Sheet.

You can download the Strat trading cheat sheet pdf below. This free cheat sheet contains:

• The 3 scenarios quick reference
• All 7 Strat combo patterns (bull + bear)
• Timeframe continuity checklist
• Key terms glossary
• Trade execution rules

Click below to download your free Strat Patterns Cheat Sheet PDF. 

Download Strat Trading Cheat Sheet

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