Trade Eagle

### 1. Standard Retest (Top Left)
- Structure: Price breaks above a key level (resistance), then returns to test it as support.
- Interpretation: A clean breakout followed by a confirmation retest. Bullish continuation expected if the support holds.
- Use Case: Ideal for entry after confirmation.
---
### 2. Structure Retest (Top Right)
- Structure: Break of market structure (e.g., lower highs/lower lows), followed by a retest of the broken structure line.
- Interpretation: Signals a shift in trend from bearish to bullish. The retest confirms the change in direction.
- Use Case: Strong confirmation of reversal. Best for early trend entry.
---
### 3. Demand Zone + Order Block Retest (Middle Left)
- Structure: Price consolidates, forming an order block (OB) above a demand zone, then retests both before rising.
- Interpretation: Combination of supply/demand and smart money concepts. Shows institutional accumulation.
- Use Case: Entry near demand/OB after consolidation breakout.
---
### 4. Manipulation Retest (Middle Right)
- Structure: Price manipulates below a support (fakeout), grabs liquidity, then shoots up.
- Interpretation: "Stop hunt" before real move. Smart money trap to remove weak hands.
- Use Case: Look for rejection wicks or engulfing candles after manipulation for entry.
---
### 5. Deep Demand Retest (Bottom Left)
- Structure: Price retests the lower edge of a demand zone, often deeper than expected.
- Interpretation: Strong accumulation. Bulls absorb all selling pressure before breakout.
- Use Case: Entry at the bottom of the demand zone with tight stop-loss.
---
### 6. Demand Retest After Breakout (Bottom Right)
- Structure: Price breaks out from a consolidation or resistance, then returns to retest the demand zone formed by prior consolidation.
- Interpretation: Confirmation of the breakout and continuation. Acts as re-accumulation.
- Use Case: Enter on confirmation of support holding above the demand zone.
---
### Conclusion
These bullish retest patterns are all signs of potential trend continuation or reversal confirmation. Traders use them to:
- Avoid fake breakouts.
- Confirm strength before entering long positions.
- Identify areas of smart money interest (order blocks, liquidity grabs).

It focuses on using volume shrinkage or expansion to identify buy/sell signals, reversals, and false breakouts.
Let’s break down the key insights from each section:
---
### Figure 4A and 4B: Buy/Sell Signals Based on Volume Shrinkage
- Concept: When price tests a previous high/low, the change in volume is more important than the actual volume figure.
- Sell Signal (Figure 4A):
- Volume shrinks consistently (e.g., 115K → 105K).
- If the final test shows less than 8% shrinkage, but still more than 3%, it's in “no man's land” — caution zone.
- If the test happens with less than 8% volume of the first high/low, expect a reversal (sell).
- Buy Signal (Figure 4B):
- Same principle in reverse.
- Volume shrinkage shows weakness in the move down, suggesting a potential reversal up.
---
### Figure 4: Comparing Volume on Retests
- Even on the 3rd or 4th retest, compare volume to the first high/low.
- If volume is equal to or greater than the original and price exceeds it, expect continuation.
- If volume is less than 8%, expect a reversal.
---
### Figure 5: Reversing Back Into Trading Range
Key points:
1. < 3% change in volume on retest implies likely breakout (not reversal).
2. Use percentage shrinkage/increase, not raw volume.
3. If price fails to exceed the previous high/low and volume shrinks by at least 8%, expect reversal.
4. If it exceeds with equal or greater volume, expect continuation.
---
### Figure 6: False Breakouts
- If price breaks high/low with 8%+ volume shrinkage, and then returns into the range, it's a false break.
- Example:
- First test at 100K vol, next at 90K vol (10% shrinkage) = likely fakeout.
- Monitor whether price re-enters the range to confirm.
---
### Important Notes:
- Apply these rules even to gaps or support/resistance zones.
- A consistent volume pattern helps you anticipate breakouts or reversals.
- 3% margin: If volume change is within this, assume continuation.
Application Tip:
This method is especially useful in range-bound markets or during retests of breakout levels. It helps traders avoid traps (fakeouts) and time entries based on the volume conviction behind a price move.