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Retest

Breakout-Retest Strategy implemented for shorting GBP/USDThe forex strategy that I use primarily is based on chart patterns and candlestick formations. The process begins with identifying support and resistance levels and determining the overall trend direction from the H4 (4-hour) chart. Subsequently, this analysis is refined on the H1 (1-hour) and M30 (30-minute) charts to gain a more comprehensive view of market dynamics. The reason behind this multi-timeframe approach is to ensure that we have a clear understanding of the critical price levels and trend dynamics. Relying solely on a single timeframe, such as the M30 chart, can be limiting as it may not reveal the full extent of significant resistance areas or the broader trend context. The central element of this strategy involves marking and monitoring trendline breakouts, while also considering support and resistance levels. We need to start by drawing trendlines on either the H1 or M30 chart, depending on the timeframe that provides the most clarity for the particular trade setup. Once the trendline is established, we need to patiently wait for the price to break this trendline. It's essential to distinguish between a genuine breakout and a false breakout (fakeout). A price may momentarily break the trendline but then quickly revert within it. To confirm a legitimate breakout, we need to use a specific criterion i.e. the candle that breaks the trendline must close outside of it. Moreover, the subsequent candle should close above the highest price point of the previous candle that initially broke the trendline. This confirmation ensures a stronger indication of a sustained move in the breakout direction. Once a valid trendline breakout is confirmed, a horizontal line is marked at the breakout level (1.27393). This acknowledges the tendency for prices to retest back to the breakout zone before continuing their move in the breakout direction. This retesting phase is an important component of this strategy. However, it is important to note that a trade is not executed immediately during a retest. Entry signals are confirmed by closely observing the M5 and M1 charts. As the price approaches the breakout zone, it typically forms higher highs and higher lows (in the case of an upward breakout) or lower highs and lower lows (in the case of a downward breakout). To initiate a trade, we need to look for a reversal pattern on the M1/M5 chart. In the trade above, the price has broken the upward trendline at the price level of 1.27393. Then based on the M5 chart, it can be seen that the price is retesting to the breakout level above and forming higher highs and higher lows (HH-HL). We need to wait until the price touches the breakout line and breaks the HH-HL pattern by forming a lower high. At 1.27309, price made a high lower than the previous high after retesting and touching the breakout level. This indicates a reversal and a confirmation for entry. The MACD indicator with 12-26-9 settings is used to mark the highs and lows more accurately in the M5 chart. The green histogram bars indicate bullish momentum and red histogram bars indicate bearish momentum. This is an important indicator for this strategy as marking the highs and lows accurately is crucial to identify the reversal. The trade was entered at 1.27236 upon confirmation of the LH and reversal in M5 chart (after touching the breakout level): In this strategy, a crucial aspect is the use of a 1 to 1 reward-to-risk ratio, and it typically involves aiming for a take profit (TP) and stop loss (SL) of 50 pips each. These TP and SL levels are established with careful consideration of the support and resistance zones identified during the initial analysis in higher timeframes. The importance of these zones lies in their ability to impact trade placement. For instance, when opening a buy trade, if there's a significant resistance level above, whether identified on the H4, H1, or M30 timeframe charts, it's essential to set the TP below that resistance level. This approach is taken because price movements often encounter rejection at such resistance levels, making it crucial to secure profits before reaching that level. By following this TP and SL levels, the trade hit TP with a profit of 50 pips.
Education
by zeem22
1
FTSE 100 Big triangle from 2023 breakout and retestOn the Daily chart for FTSE 100, we can observe a massive triangle that was forming in 2023. It started in Februaty and produced a breakout in December. For the past few days the price has been correctign and now it's retesting the resistance of the triangle, now acting as a support. This support is aligning with the 0.382 Fib and the 200 SMA The development on it is very important. If the price provides a reversing indication in the following hours, this can be a nice entry for a trade that can target the previous swing high at around 7750 - 7770 and bossibly higher
CAPITALCOM:UK100
by RTED_Investing
🥇 GOLD - Retest of strong resistance before the news Gold is testing resistance before the publication of strong news in the US market. Most likely, based on the analysis of the fundamental outlook, the dollar may get bullish volume and start local strengthening. Gold in this case may lose its positions and after a false breakdown of 2050 or 2058 head downwards, accompanying the current trend direction Prerequisites for further decline: 1) Price from below is testing resistance (previously broken 2048 support) 2) Fundamentally, bears have come to the gold market 3) Long candles relative to the current resistance 4) False Breakout 5) Global reversal pattern
OANDA:XAUUSDShort
by Gold-Tech
5
Strong Breakout confirm for the 5th wave of ImpulseWaveOn week chart I figured out the Impulse Wave has begun from $15,4xx and now it's been happening the fifth wave with target around $40,000 and can be further at $42,000. You easily spot the strong Valid Breakout happened around $31,300 within volume higher 130% Avg. Vol 30 days and now, it will retest or keep up climb higher and higher cause the bullish candle has a bit little wick that shows strength of buyer. However, my view Bitcoin can reverse a bit before go up again because ADX > 80 and RSI Overbought these signals is good for reversing. Wait and see around $31,300 Time will tell
Long
by trieutv
CRV / USDT - Bullish Momentum ContinuationTechnical Analysis: Retest of Previous High: price has recently undergone a successful retest of its previous high, indicating a robust support level that could contribute to a sustained bullish trend. 200 Moving Average Breakout: The 200-day moving average has been convincingly breached, signaling a potential shift in the trend and attracting bullish sentiment. Price Action and Trend Analysis: The retest of the previous high coupled with the breakout above the 200-day moving average suggests a favorable environment for further upward movement. Target: Target: $0.7910 Risk Management: As with any trade, consider implementing risk management strategies. Set stop-loss orders to protect your position in case of unexpected market movements.
Long
by K_M_M
Monero(XMR): We Will Sell Soon! The XMR/USDT market is displaying some dramatic price action. The recent sharp decline suggests a significant urge for downward movement. Despite these bearish liquidity moves we are having on the market, the price of XMR has re-tested the major resistance (which once was broken and we had a nice fakeout). If this retest turns out to be a fakeout, it indicates that sellers are still in control, and we could expect further downside towards the $157.51 support level. This bearish scenario aligns with the recent drop and will be further substantiated if the price fails to reclaim higher levels soon.
Short
by SwallowPremium
SWING IDEA - BALRAMPUR CHINIBALRAMPURCHINI seems to be in a very crucial buying zone. The reasons are listed below : Stock price tested 411 levels multiple times and finally broke it and it is retesting those levels again. Broke the ascending triangle pattern i.e a bullish sign. 200EMA support on daily timeframe. Stock was in a consolidation phase from last 1.5 years. Higher high are being formed. Support formed at 411 levels which was a strong resistance previously. Target - 462 // 520 SL - 406 on closing basis
NSE:BALRAMCHINLong
by Visionary_Growth_Insights
Safe Bulkers, Inc. ($SB) AnalysisSector: Industrials - Marine Shipping | Country: Monaco Company Overview: Safe Bulkers, Inc. ( NYSE:SB ), a key player in the Industrials sector with a focus on Marine Shipping, operates globally, providing safe and efficient shipping solutions. As a small-cap company based in Monaco, Safe Bulkers specializes in transporting bulk cargoes, contributing to the vital maritime logistics infrastructure. Performance Metrics: NYSE:SB demonstrates compelling performance metrics within the small_cap screening, indicating potential opportunities for investors. Relative Strength: Exhibiting robust relative strength scores of 3.97 against its sector and an impressive 5.11 against the S&P500, NYSE:SB showcases resilience and outperformance against broader market benchmarks. U/D Ratios: With a U/D ratio of 1.77 (50 days) and 2.24 (15 days), NYSE:SB reveals positive market sentiment and notable upward price movements. Detected Base Depth: A substantial detected base depth of 70.67% positions NYSE:SB favorably, indicating a solid foundation for potential future growth. Price Dynamics: Despite a slight volume deviation of -2.32% below its 15-day average, recent candlestick patterns reveal a 1.33% range in the last candle body and a strong 100.0% closing range. This signifies strong bullish momentum and stability. The last closing price, at -1.04% away from base resistance, provides an attractive entry point, suggesting potential for further upward momentum. Short-term Trends: Over the last 10 days, NYSE:SB has experienced declining prices, volume, and accumulation, reflecting short-term pull back sentiments. EMA Analysis: Historical EMA patterns suggest that NYSE:SB usually encounters local tops when the price closes around 49.18% above its 50-day Exponential Moving Average (EMA). Currently, the last closing price is 9.51% away from the 50 EMA, indicating potential correction levels. Trade Idea: An entry at $3.9 aligns with pullback and accumulation signals, providing an attractive risk-reward profile. A disciplined stop loss at $3.62, based on recent lows, mitigates risk and ensures prudent risk management. The proposed trade targets an impressive 5.43 Risk-Reward (RR) ratio, with a target price of $5.44, anticipating a total profit of $217.05 or 39.47%. Conclusion: Safe Bulkers, Inc. ( NYSE:SB ) exhibits strength in the Marine Shipping sector, with robust relative strength and a detected base depth. The proposed trade idea aligns with pullback and accumulation signals, offering an attractive entry point for investors seeking exposure to potential future growth in the maritime shipping industry.
NYSE:SBLong
by HaseebKhan_90
2