3 Trade Setup Strategies Every Trader Should Know
Plan 1: Sharp Move Up & Reversal (Fakeout Strategy)
What it looks like:
A sharp rally → sudden spike → steep drop.
Why it happens:
FOMO drives rapid price increase.
Smart money sells into the pump.
Price reverses, breaking key support.
How to trade:
Avoid buying the spike.
Wait for price to return to previous demand/support zones.
Look for signs of reversal at those levels.
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Plan 2: Consolidation then Breakout
What it looks like:
Strong move up → sideways movement → breakout.
Why it happens:
Market cools off, gathers strength.
Range builds as weak hands exit.
Breakout shows renewed momentum.
How to trade:
Watch the consolidation zone.
Buy the breakout or wait for the breakout retest.
Ideal for trend continuation trades.
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Plan 3: Breakout and Retest (Safer Entry)
What it looks like:
Price breaks resistance → pulls back → retests breakout level.
Why it happens:
Initial breakout triggers profit-taking.
Pullback tests market conviction.
Buyers hold support → rally resumes.
How to trade:
Wait for price to successfully retest the breakout level.
Enter long if support holds.
Lower risk than chasing the breakout directly.
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Stay patient. Let the setup come to you.
Good luck & Keep learning!