Implementing the “break and retest” into my strategy has transformed my trading this year and I just wanted to share it here, maybe it will work as well for you.
As with most strategies, it is just one part of your strategy and should be used in combination with other things to achieve your edge in the market.
I use it with the trend on higher TF’s, my favourite being 4H while using the daily or weekly directional bias.
It is simply the break and retest of a support/resistance area:
Here this area is shown as a line, but you can also draw a box encompassing the wicks:
The more wicks you have testing this area, the stronger the area. This one is still in the development phase so I have no idea which direction it will go, but the most probable direction at this moment is up, and that’s about the best you can do. Anything else would be guessing.
A couple more examples (daily and weekly trend is up):
You get the picture. Keep an eye out for these areas and practice spotting them as a part of your everyday analysis, you won’t be disappointed.
Good luck and happy trading!
Matty
