🎯 Master the “Break & Retest” Trading Strategy in 4 Simple Steps

Ever enter a breakout trade, only to get stopped out right after? The Break & Retest method helps you avoid those fakeouts by waiting for confirmation — trading smarter, not faster.

Let’s break it down 👇

Step 1: Identify Key Zones

Mark your support and resistance levels — areas where price consistently reacts. The more touches a level gets, the stronger it becomes. These zones act as the market’s “decision points,” where trends often pause or reverse.

Step 2: Wait for a Clean Break

Patience is everything. Let price decisively break through one of your marked levels, ideally backed by higher volume. This signals genuine momentum rather than a false breakout.

Step 3: Confirm the Retest

After breaking out, the market often retests the same level it just crossed. This is your setup zone.

If old resistance becomes new support — and you spot bullish confirmation (e.g., rejection wicks or strong candles) — that’s your entry cue.

Step 4: Define Your Risk & Reward

Every solid trade plan includes both protection and profit targets:

🔹 Stop Loss (SL): Just beyond the retest level — if price closes back inside, the setup is invalid.

🔹 Take Profit (TP): At the next key level or a 1:2+ risk-to-reward ratio for balanced growth.

💡 Why It Works:

The Break & Retest strategy keeps you trading with the trend, not chasing it. You’re waiting for market confirmation, reducing emotional entries, and managing risk effectively.

⚠️ Remember — not all retests hold. Use your stop loss, stay disciplined, and focus on consistency over perfection.

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