Crypto Academy / Season 3 / Week 3 - Homework Post for [@cryptocraze] …Advanced Course - Break Retest Break (BRB) Strategy to Trade Continuation

1 - What do you understand about the Concept of Break Retest Break Strategy? Give Chart Examples from Crypto Assets.

The Break-Retest-Break strategy is a trading strategy that involves trading the current trend (continuations) as opposed to trading opposite trends or reversals. It's based on the notion "in a trending market, the trend is your friend". Trends consist of minor demand and supply zones (zones where price has reacted to in recent times), or lower lows and lower highs in a downtrend and higher highs and higher lows in an uptrend.

The Break-Retest-Break strategy is characterized by impulsive movements followed by smaller pull-backs or retracements. In an existing trend, price most often would not make one big move all the way across zones, there would often be minor retracements or pull-backs before price continues its current trend.

There are two scenarios that could occur when trading using the break-Retest-Break strategy. The first scenario is in the

bullish market structure

Here price breaks through a resistance forming a swing point, goes back to the resistance line to make a retest( case of resistance turned support) and goes further to make a new higher high as indicated above.

Bearish market scenario

Here price breaks through a support level and forms a swing point, then pulls back to retest that level before continuing its downtrend as indicated above.

2 - Mark important levels on Crypto Charts to trade BRB strategy. Do it for Both Buy and Sell Scenario.

• Sell scenario

When looking to sell in a sell scenario, there are some market structures to watch out for and they include:

• support level
• swing point created
• support retest
• Swing level break

How it works
After marking important levels in the chart, we noticed price broke below a support level and creates a swing point before going back to retest the support level which is followed by price breaking the swing level in continuation of its trend.

• BUY scenario

In a buy scenario, important levels to mark out include

• Resistance
• Break above resistance
• swing point formed
• Retest
• Break above swing point

How it works
Here price breaks through a resistance forming a swing point and goes back to the resistance line to make a retest( case of resistance turned support) and goes further to make a new higher high as indicated above.

3 - Explain Trade Entry and Exit Criteria for both Buy and Sell Positions on any Crypto Asset using any time frame of your choice (Screenshots Needed)

Explanation of criteria for trade entry and exit when using the break-retest-break trading strategy

• Entry and exit criteria for buy position

TRADE ENTRY

• price should be approaching a resistance level
• After a while price should break above the resistance level and form a swing point
• Price should pull back and retest the previous resistance level
• after price retests, a trend continuation pattern should be formed where price moves toward the swing level marked and break through it
• A buy position should be placed when all the criteria listed are met

TRADE EXIT
When a trade is exited, it can only be one of the following two reasons

• Stop loss level has been hit and therefore trade has been in---. This is a scenario where the trade doesn't go as planned

• Take profit has been triggered and the trade was a success.

• stop loss would be set just below resistance level

• TP and SL should be set in a 1:1 ratio as requested by the crypto professor.
  It would look like this

_{Chart displaying Take profit and stop loss set in a ratio 1:1 using tradingview}

ENTRY AND EXIT CRITERIA FOR SELL POSITION

As price action forms, each important level should be marked
TRADE ENTRY

• Price should be approaching a support level
• Price should break below the support level and form a swing point
• Price should pull back and retest the support level from below
• After a retest, price should make towards the swing level marked and break below it
• A sell position should be taken just below the break of the swing point

TRADE EXIT
As explained above, a trade exit is characterized by the use of take profit and stop losses.

• The stop loss would be set just above the support level price has broken
• Take profit should be set in a 1:1 reward/risk ratio to the stop loss
• If price hits stop loss then trade is invalidated and would be exited
• If price hits TP, profits would be booked and trade would be exited as displayed below.

_{chart displaying take profit and stop loss set in 1:1 risk reward ratio using tradingview}

4 - Place 2 demo trades on crypto assets using BRB Strategy. You can use lower timeframe for these demo trades (Screenshots Needed)

With respect to the break-retest-break strategy, I took some trades.

First trade on the SOL/USDT pair

Firstly, the SOL/USDT pair 45minute price pattern conformed to the criteria required for the break-retest-break strategy.

• Price broke below support
• A swing point was formed
• A pullback to retest support occurred
• Price approached swing point and broke below it. Trade was taken at this point with a 1-1 risk-reward ratio.

<sub>Chart of SOL/USDT pair



SELL trade taken on trading view paper trading</sub>

Second trade on the ALICE/USDT pair

I've been observing the ALICE/USDT pair and I noticed it met some of the aforementioned trade setup criteria.

1. Price broke through the support level
2. A swing point was formed
3. There was a retest of the support level followed by rejection

I waited and observed the pair for a while to see if it would approach the swing point marked. After some hours, price approached swing point and broke through it and this was my entry point.

_{sell trade taken on ALICE/USDT using tradingview paper trading}

I also took the ALICE/USDT trade on the ALICE/USDT trade on a real account on the Binance platform using a limit order

_{Real trade taken using the break-retest-break strategy}

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Thank you
With respect to the questions assigned by crypto professor @cryptokraze and in accordance with the respective rules highlighted. I've done my research and tried to tackle the beginner introduction course. I'd leave the assessment to the professors.
Thanks to the steemit team for this wonderful learning opportunity once again. It's been nice so far, I'm forever grateful.
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