Go-To Trading Setups – Simple & Effective Strategies

Planning your trades is just as important as executing them. Here are a few setups I personally like to use. They’re straightforward, practical, and based on real market behavior.

Plan 1: Sharp Move Up, Then Reversal or Pullback

What it looks like:

A sudden strong rally, followed by a spike—and then a quick drop.

Why it happens:

FOMO buying drives the price up fast.

Smart money sells into that strength.

Price then sharply reverses and breaks below support.

How to trade it:

Avoid chasing the spike.

Let the price pull back to a previous demand or support zone.

Watch for confirmation signals before entering.

Plan 2: Consolidation Followed by Breakout

What it looks like:

A strong move up, then sideways movement (consolidation), followed by a breakout.

Why it happens:

Market takes a breather after a rally.

Buyers and sellers fight it out in a tight range.

A breakout signals fresh momentum and continuation.

How to trade it:

Watch for a clean breakout from the consolidation range.

You can buy the breakout or wait for a retest for confirmation.

This is an ideal setup for trend continuation.

Plan 3: Breakout and Retest

What it looks like:

Price breaks above resistance, pulls back to retest that same level.

Why it happens:

Breakout happens with momentum.

Some traders take profit, causing a pullback.

Buyers defend the old resistance, which now acts as support.

How to trade it:

Wait for a successful retest (price holds above previous resistance).

It’s usually safer than buying the breakout directly.

This often leads to a strong continuation move.

Good luck & keep learning. The market always has something to teach you.