How to Trade Cryptocurrencies simply and technically by following the Break and Retest Strategy
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyser. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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When we discuss cryptocurrencies, we should never forget that the movement of any relevant price assets will not move towards a side continuously. It means, there can be some Breaks and Retests during the price movement. So, there is a separate method to Trade Cryptocurrencies by using these special Breaks and Retests.
We know that we can easily find some comparable price movements in the chart as corresponded to past chart data of that asset. As an example, if the current price movement reaches a point at which the previous price movement is rejected from that point, we simply guess that the price can be rejected from those zones again.
Furthermore, we can draw some trend lines following these zones and we can mark them on the chart as support or resistance levels. Then, if the price level breaks these zones without rejecting like previously, we can consider it as a breakout and still we should wait for a better retest. It means, usually, the price movement should be retested in the broken trend line one time.
Finally, if the price movement can hold the broken trend line, we can take our entry when the price again begins to move towards the broken side of the market. This is the very basic concept for the Break and Retest strategy and we can use this method effectively for getting higher rewards.
As I said before, using the Break and Retest Strategy is a very useful Strategy to Trade any type of Crypto assets in a very effective manner. In addition to indicators which generate buy or sell signals in the market, we can use these simple strategies to increase our winning rate at a certain level. As Break and Retest Strategies are very common among all the Crypto Traders, they always tend to follow these signals and their success will be increased due to this. When we use Break and Retest Strategies to accomplish our Trading setup, we can easily place our Stop-Loss point with the help of broken support or resistance zones. Therefore, we have the ability to follow a proper risk management method by following Break and Retest Strategy tradings.
Here we can use some other supportive indicators to increase the accuracy of our signals such as the Relative Strength Index (RSI). So, here I will also use this Relative Strength Index (RSI) and I use this only for identifying bullish or bearish divergences in the chart. Because, even if a break and retest has appeared in the chart, the price can still go in the opposite way if the market Strength is not good., That's why here I thought using the Relative Strength Index (RSI) is a supportive indicator for this Strategy.
Below I have demonstrated a better bullish breakout through the Tradingview chart. Here you can clearly see the price movement has retested the broken level properly and again gained its momentum effectively.
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Below I have demonstrated a better bearish breakout through the Tradingview chart. Here you can clearly see the price movement has retested the broken level properly and again gained its momentum effectively.
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In this way, we can use this Break and Retest Strategy for getting better and easy trading opportunities. However, we should always try to combine this strategy with some other indicators to increase the winning percentage.
At the same time, as I said in my previous article, we should remember that all the indicators and strategies are not efficient completely as nothing we can find 100% efficient in the world. So, we should depend only on these strategies
and indicators to confirm our trading opportunities.
I have studied the below-sourced articles to further study these topics and I have explained all the above facts in my own words and experience.
10% benificiary set for @tron-fan-club
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Thank you @fredquantum for your support. I really appreciate it.
Having this knowledge will help one not to be ensnared or caught up in an unfavourable state in the market. I will take my time to digest this lesson well.
Of course brother. I hope you will be able to learn a lot from this article.
The break and retest strategy is indeed a very good strategy as it helps to confirm that a just broken support has successfully turned to a resistance or that a broken resistance has successfully turned to a support which gives more confidence while making an entry.
Thanks for this piece bro.
Well said brother. I can see you have a good knowledge of this strategy.
Thank you for sharing this vital information regarding yhe trading the break and retest strategy. A job welldone
You are most welcome and thank you very much for such a valuable comment on my article.
Break and Retest Strategy is an important trading technique which if known can help trade better. Thank you for sharing it a really important post.
Yeah this strategy is an important trading technique as a good supportive strategy for accomplishing day tradings. Thanks a lot for your valuable comment.
I’m currently taking tutorials on trading and this post is definitely very educative
Thanks
It's pleasure to hear that this article was useful to you. Stay with me to know more about Trading.