The Price Action Trading Strategy..
The STRAT Trading Strategy is based on Price Action and is a reaction to price trading where there is no guessing or prediction. THE STRAT classifies the Candlesticks into types named “1”, “2” and “3” and also utilizes multiple Time Frame Analysis and levels, Time Frame Continuity in order to provide you with accurate signals that you can rely on while trading. This is a Quick Guide to get you started Trading The STRAT Algo which makes it easier to make and keep more of your Profits.
The STRAT Candlesticks
The STRAT Candlesticks are classified into one of these three candles based On the relation to the previous candle.
CandleStick 1: Also Called inside Candle in relation to the previous candle and is colored in WHITE. Inside Candle is weak and considered indecisive price action (The candle High and Low are within the previous candle High and Low prices)
CandleStick 2: Also Called Directional Candle in relation to the previous candle and is colored GREEN or RED depending on direction. Directional Candles are strong and drives the direction of the price Up or Down (The candle is GREEN if it breaks the High of previous Candle Only and RED if Price Breaks previous Candle Low only instead.)
CandleStick 3: Also Called Outside Candle in relation to the previous candle and is colored in YELLOW. Outside Candles are strong and usually means Reversal in Price Action (The candle High and Low Broke the previous candle High and Low prices)