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.
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.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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