Hey guys, I just wanted to get some opinions from traders who use the break & retest strategy on the 1 hour time frame. Suppose a resistance is broken (candle closed above), then it comes back down for a retest. What do you wait for, before you enter a long position? What I have been doing is, waiting for the next candle to flip back into the intended direction, but then the entry is not as precise. Let me know what you guys think!
i uses 1d timeframe for this strategy. Then i will spot candle stick pattern on the 4h and the 1h and the 15min chart. If a big reversal candle appears on any of the timeframe and at the buying/selling zone, i will buy immediately I see any engulfing candles or railroads.
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First break of resistance (or support) is often a false move. Wait for confirmation - either second breach or a close beyond the second breach.
Your entry point as shown is on breach of the high of a the first breaching candle. I haven’t heard of this before, I’m not sure that particular price level is significant. I would enter on either a second breach of the resistance level after price has again traded below it or the close of the first candle above the resistance zone after further price trading below the resistance zone.
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Can you republish the chart showing volume (I know - I know - "Volume is not real in forex " - but it gives us a clue)
I think you’ll find that your entry point, whilst perhaps a little late is ok - but thet big blue 3 bars later and the red which folllows are both quite high volume too and should perhaps define an EXIT point.
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