📚 Break & Retest Strategy
🔷 Step 1️⃣: Identify the consolidation area
Identify the high and low (resistance line and support line).
Observe the price movement within this horizontal area (price moving horizontally).
🔷 Step 2️⃣: Wait for the breakout moment
Watch for a strong candle closing above resistance (if buying) or below support (if selling).
This confirms the presence of new momentum in the market.
🔷 Step 3️⃣: Wait for the retest
After the breakout, wait for the price to return to retest the broken resistance level (or broken support).
If no retest occurs, do not enter the trade.
🔷 Step 4️⃣: Confirm the retest
In the retest area, watch for the formation of a reversal or confirming candle (like a pin bar or bullish engulfing candle).
This candle is a sign that the price is ready to launch again.
🔷 Step 5️⃣: Enter the trade
Enter a long trade after confirming the retest of the broken resistance (which has turned into support).
Or enter a short trade after confirming the retest of the broken support (which has turned into resistance).
🔷 Step 6️⃣: Determine the stop loss
Place the stop loss below the new support area (in case of buying).
Or above the new resistance area (in the case of selling).
The goal is to protect your capital and reduce risks.
🔷 Step 7️⃣: Determine the target (Take Profit)
Set a profit ratio of at least 1:3 relative to the stop loss.
You can use Fibonacci levels or upcoming resistance/support areas to determine the target.
---
💡 Additional tips:
✅ Use medium time frames (like hourly or four-hour) to improve the success rate of the model.
✅ Make sure there is strong momentum (Confirmation C1 and C2 as illustrated in the images).
✅ Do not enter the trade without a retest (to avoid a false breakout).
Strategy model
