🔥 Killer Trading Strategy: “Breakout with Retest” + RSI Divergence 🔥
⏱️ Preferred Timeframes: 1H or 4H
💰 Markets: BTC, ETH, SOL, BNB, OP – but it works on any coin with solid liquidity.
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✅ What You’re Looking For:
1. Clear consolidation zone – Price moves sideways for a while, creating a solid support & resistance zone (think of a box or a range).
2. Breakout – Price breaks above resistance (for longs) or below support (for shorts) with strong volume.
3. Retest – After the breakout, price comes back to test the broken level. That’s your golden entry.
4. RSI divergence confirmation – If RSI shows hidden bullish divergence (for longs) or hidden bearish divergence (for shorts) on the retest, you’ve got extra confluence.
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📈 Trade Setup (Long Example):
• Entry: On the retest of broken resistance (now turned support), ideally with a bullish candle confirmation.
• Stop Loss: Below the retest low or below the consolidation box.
• Take Profit 1: Next key resistance or Fibonacci extension (1.618 usually hits nice).
• Take Profit 2: Trail it using EMA or a swing high.
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🧠 Pro Tips:
• Combine this with volume spikes – no volume = no conviction.
• Always zoom out and check higher timeframes. Don’t long into HTF resistance like a rookie.
• If there’s no clean retest, don’t chase. Let it go. The market is like Tinder – there’s always another setup.
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🧪 Example Coins to Watch Right Now:
(You can update this before posting with live coins)
• BTC breaking out of a wedge
• SOL bouncing from a demand zone
• OP showing bullish RSI divergence
