Hello,
Has someone been successful with this strategy!??
I am trying this strategy and doing lots of back-testing but I am not getting it.
What exactly is your strategy ?
The strategy is simple, you simple draw support and resistance, then you wait for the price to break it and you enter in the retest.
If you put in google “breakout and retest FX”, you will find lots of info.
Is a very good strategy because this happens quite a lot and also you dont need indicators.
Ok let me ask a question
Wouldn’t it be more wise to see if it retest the line more than once? I think if just test it once you don’t have enough historical info yet to truly know if it might deviate and continue its path or reverse.
I think I would say this strategy would be better fine tuned if you have it break a region twice or so and then it comes back on the reversal because at least you’re well aware that has been a “stopping” zone and usually the price freezes when it hits there and reverses.
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If it’s so simple why aren’t you getting it ? I know what break and retest means i don’t need google m8 was asking your strategy like how you trade it when are you entering .
The rules are easy.
That does not mean that also will be easy to spot the key levels.
Anyways it seems like you are offended and I am not here to discuss I am here to find a solution.
Not offended, what exactly is it you want to know ? Where are you having problems.? Maybe place a buy / sell stop after the first high after break ? I suppose it depends on a few variables. Also looking out for bull, bear traps.!
Joshua MArtinez has an excellent video on this trade method.
This trade reversal works quite well but usually more patience than I have.
I prefer to use Pivots aka Fractals.
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By the way, what tools do you use for back testing?
Well I don’t do any back testing. I try and trade what I see.
I merely use TradingView, there is a tool in there called replay, that is what I use to do back testing.
I am going to look it up on youtube. Right now I have been consuming a lot of videos from Christopher Derrick.
I find that break and retest works better if the support or resistance that was broken is part of some larger clear pattern, i.e. head and shoulders or ascending/descending triangles, rather than straightforward support and resistance.
Would suggest you read the Edwards and McGee book on technical analysis 10th edition, while it deals with stocks you can just focus on the classical chart patterns discussed there.
If you get more than one retest chances are it’s going to be a failed breakout and you might want to think of trading the other way.
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For more info please take a look here Forex Breakout Strategy | Trading Breakouts Forex | 2ndSkies and some more videos YouTube and YouTube should be good.