TheStrat, developed by Rob Smith, is a powerful trading methodology that combines price action, multi-timeframe analysis (MTFA), and strategic setups to identify high-probability reversals and continuations. This guide explores key indicators, scripts, and scanners used by TheStrat traders.
Core TheStrat Indicators
1. Strat+MA Indicator
Combines moving averages with TheStrat's candle pattern recognition:
Candle Types:
- Inside Candle: Price contained within previous candle's range
- One-Side Break: Breaches either high or low of previous candle
- Outside Candle: Engulfing pattern breaching both sides
Moving Average Configuration:
- Supports SMA, EMA, and VWMA
- Color-coded fills (green when MA2 > MA1, red when MA2 < MA1)
Setup Classifications:
| Code | Description | Example Formation | |------|---------------------------|------------------------------| | 22 | Two consecutive same-direction candles | Last 2↓, current 2↑ (RL) | | 212 | Three-candle formation with inside bar | 3rd↓, inside, current↑ | | 312 | Outside candle followed by inside bar | Outside→Inside→Current |
👉 Discover how professional traders use MA crossovers
2. Full Timeframe Continuity (FTFC) Indicator
Identifies alignment across multiple timeframes:
Timeframe Groups:
- Intraday (1min - 1hr)
- Swing (1hr - 1month)
- Long-term (1wk - 1yr)
Visual Signals:
- ▲ Green: All selected timeframes above their opens
- ▼ Red: All selected timeframes below their opens
Limitation: Cannot access timeframes lower than current chart resolution.
Multi-Timeframe Analysis Tools
3. Custom Timeframe High/Low Marker
Automates critical price level identification across 4 user-defined periods (default: 3hr, 6hr, 12hr, daily).
Key Features:
- Color-coded lines for each timeframe
- Toggle visibility per timeframe
- Works across all chart types
4. MTF High/Low Indicator
Plots quarterly→hourly levels simultaneously:
| Timeframe | Typical Use Case |
|---|---|
| Quarterly | Position traders |
| Monthly | Swing traders |
| Weekly | Medium-term analysis |
| Daily | Day traders |
👉 Master multi-timeframe trading strategies
TheStrat Scanners
5. TheStratHelper Scanner
Screens for 40 symbols across configurable timeframes detecting:
- 2 Up/Down formations
- 3-1 and 2-1 patterns
- Inside/Outside bars
- Failed 2→3 transitions
Requires manual activation via DM
Strategic Applications
Reversal vs Continuation Setups
- RL (Reversal Long): 22, 212, 312 patterns during downtrends
- CL (Continuation Long): Same patterns during uptrends
- RS/CS: Mirror patterns for short positions
Timeframe Alignment Strategy
- Identify higher timeframe trend via FTFC
- Wait for lower timeframe reversal pattern
- Enter when lower timeframe triggers higher timeframe level break
FAQ Section
Q: What's the minimum timeframe for TheStrat?
A: The methodology works from 1-minute charts upwards. Shorter timeframes require tighter risk management.
Q: How many MA combinations should I test?
A: Start with 2-3 combinations (e.g., 9/21 EMA, 20/50 SMA) and backtest before live trading.
Q: Can FTFC work for crypto markets?
A: Yes, but consider 24/7 trading hours - the 6hr timeframe often works well for crypto.
Q: What's the most reliable reversal pattern?
A: The 212 formation frequently offers high-probability entries with defined risk points.
Q: How do I filter false signals?
A: Combine with volume analysis and wait for close beyond confirmation levels.
Q: Is TheStrat suitable for beginners?
A: The concepts are simple but require practice - paper trade patterns first.