The Strat 2 Up
A "Strat 2-up green day followed by another bullish 2-up breakout" is a specific and bullish pattern
within The Strat trading strategy. It describes a two-day sequence that suggests strong and accelerating upward
momentum.
Here's the breakdown of what this pattern signifies:
- First Bar: 2-Up Green Day: The first day is a "2-up" candle, meaning its high and low are both higher than
the
previous day's candle. The fact that it's "green" means the closing price was higher than the opening price.
This candle already shows clear bullish directional momentum.
- Second Bar: Bullish 2-Up Breakout: The second day continues this bullish momentum. It is also a "2-up"
candle,
with its high and low above the first 2-up bar. This is a "breakout" because the second candle's action
surpasses the high of the first candle, confirming that the upward movement is continuing and gaining
strength.
The fact that this second bar is also "green" (closing above its open) adds even more conviction to the
bullish
signal.
This two-bar pattern is interpreted as a strong continuation signal. It suggests that buyers are in firm
control, and the stock is likely to continue its move to the upside. For traders following The Strat, this setup
provides a high-probability entry point for a long position, often with a stop-loss placed below the low of the
first or second bar, depending on their risk tolerance. The pattern's strength is its confirmation of momentum,
with one bullish directional move followed immediately by another, larger one.