📌 3 Trade Setup Styles Every Trader Should Know
Whether you're building a strategy or refining your entries, here’s how you can plan your trades more effectively:
📈 Setup 1: Rapid Surge Followed by Drop
Structure:
A quick upward spike, followed by an abrupt reversal and sharp decline.
Why it happens:
FOMO buying pushes price up fast
Smart money exits into the strength
Price quickly drops below key levels
How to react:
Don’t chase the top
Wait for price to revisit earlier demand or support areas
🔄 Setup 2: Sideways Action Before Breakout
Structure:
A strong move up, followed by sideways movement, then a breakout.
Why it happens:
Market consolidates and builds strength
Range filters out weak hands
Breakout confirms renewed momentum
How to react:
Monitor the range boundaries
Enter on breakout or clean retest of that zone
Great for continuation trades
🔁 Setup 3: Breakout Then Retest
Structure:
Price breaks past resistance, pulls back, and retests the breakout zone.
Why it happens:
Initial breakout triggers profit-taking
Pullback finds buyers at former resistance (new support)
Buyers defend the level, confirming trend
How to react:
Enter on successful retest
Usually safer than buying the breakout itself
Often leads to extended upward moves
🎯 Final Note:
Study the price behavior, not just indicators. These patterns repeat often mastering them can elevate your trading game.
Keep improving and stay consistent.