Welcome to the Strat – The Only Trading Strategy You’ll Ever Need
Published on May 15, 2025
Welcome to your first step into mastering The Strat!
If you’re new here, don’t worry—you don’t need a PhD in finance to get started. My goal is to make trading approachable, actionable, and (dare I say) fun.
By the end of this post, you’ll understand the absolute basics of what makes The Strat the most objective and powerful trading system out there. So, grab your favorite drink, sit back, and let’s dive in.
What Is The Strat?
At its core, The Strat is a way to read price action. Forget about lagging indicators, subjective trendlines, or guessing where the market might go. The Strat boils everything down to three universal truths about price movement:
- Price only trades in 3 scenarios
- Price must trade in the direction of the most scenario 2s & scenario 2s trying to go scenario 3
- Price discovery occurs as a broadening formation
That’s it—just three scenarios! Every single price movement you see on a chart fits into one of those categories. So instead of guessing, we use these three scenarios to identify exactly what the market is doing and where it’s likely to go next.
The Three Scenarios – Let’s Break It Down
Scenario 1: Inside Bar
Price stays within the range of the previous bar. This is a tug-of-war where buyers and sellers agree on price (for now). Think of this as a pause—something’s about to happen.
Scenario 2: Trending / Directional(Up or Down)
Price breaks out of the previous bar’s range either up or down. This is where the action is! A “2 up” means price broke higher, while a “2 down” means price broke lower.
Scenario 3: Outside Bar
Price breaks both the high and low of the previous bar. This is the market taking out both sides of the range—this shows aggression from both buyers & sellers!
Why Does This Matter?
Most traders lose money because they complicate things. They stare at charts, guessing what’s happening. With The Strat, there’s no guessing. You know exactly what price is doing just by looking at the chart.
Here’s the kicker: The Strat also tells you where price is likely to go next, based on these three scenarios. And we’re not just looking for any movement—we’re looking for high-probability setups that work more often than not.
