TheStrat is a price‑action framework by Rob Smith that reduces charts to three candle “scenarios” (1=inside, 2=directional, 3=outside), then trades their combinations with time‑frame continuity and broadening formations for objective entries/exits.
Born from Smith’s decades in markets, TheStrat spread via social media and livestreams, emphasizing alignment across monthly/weekly/daily opens and pattern triggers like 2-1-2, 3-1-2, and 1-2-2 reversals to catch expansions out of consolidation.
Core pillars: time‑frame continuity (FTC), broadening formations, and actionable signals; traders scan for full alignment, set entries above/below prior bar ranges, and target prior highs/lows within the broadening structure.
Why it resonates: rules are clear, indicator‑light, multi‑asset, and community‑driven; it teaches when not to trade (discontinuity) and when to press when FTC and scenario triggers stack in the same direction.
Iconic combos: 2-2 reversal to flip direction, 2-1-2 continuation after an inside pause, 3-1-2 to resolve an outside bar and expand the broadening range; risk is managed against the signal bar with targets at prior pivots.
