🤫Want to catch powerful moves without chasing the market?
Use the Break & Retest strategy — it’s simple, precise, and deadly effective.
Here’s how it works:
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Step 1: Identify the Breakout Zone 🔍
Look for a strong level of:
• Support
• Resistance
• Trendline
When price breaks out with a strong candle + volume spike, that’s your first signal.
But don’t enter yet.
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Step 2: Wait for the Retest ⏳
This is where 90% of traders fail — they enter on the breakout.
Smart traders wait for price to come back to the broken level.
The old resistance becomes new support (and vice versa).
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Step 3: Enter on Confirmation 🎯
Once price touches the level again, look for:
✅ Bullish/bearish engulfing candle
✅ Hammer/inverted hammer
✅ Volume confirmation
✅ Lower time-frame rejection wicks
Enter your trade with confidence.
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Step 4: Risk Management is Key 🧠
Place your stop-loss just below the retested level (for longs) or above (for shorts).
Look for at least a 1:2 risk-to-reward.
This keeps you in the game even if you’re wrong.
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Real Example:
Let’s say BTC breaks above $70,000 after weeks of resistance.
It then pulls back to $70,000, forms a bullish candle, and holds above it.
That’s your perfect break & retest.
Entry: $70,100
Stop: $69,400
Target: $72,600 (1:3 R:R)
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Break & Retest is powerful because it:
✅ Avoids fakeouts
✅ Confirms strength
✅ Gives tight entries with big rewards
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Comment “BREAK & RETEST MASTERED” if this helped you simplify your trading!
I’ll share advanced trap setups in the next one.
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