The Strat Trading Method Quiz: Test Your Knowledge

Question 1

What is the core idea behind the Strat method?

Accepted Answer

It relabels every candle as one of three objective scenarios based on how it compares to the previous candle

Question 2

A candle's high is lower than the previous candle's high, and its low is higher than the previous candle's low. What Strat scenario is this?

Accepted Answer

A 1, an inside bar

Question 3

A candle breaks above the previous candle's high but does not break below its low. What is this called?

Accepted Answer

A 2U, a directional bar

Question 4

Which Strat scenario breaks both the previous candle's high and its low?

Accepted Answer

Scenario 3, the outside bar

Question 5

In a 2-2 reversal, what happens?

Accepted Answer

A directional bar in one direction is immediately followed by a directional bar breaking the opposite way

Question 6

What does full timeframe continuity mean in the Strat method?

Accepted Answer

Every timeframe, from hourly up to monthly, is pointing in the same direction

Question 7

According to the article, what is a fair criticism of the Strat method?

Accepted Answer

Labelling a candle as a 2-up does not add predictive power beyond what a higher high already showed