Let me begin by thanking all the Cryptoprofessors and CryptoAcademy for gradually making us well verse with the platform as well as other horizons of Crypto trading. Today I am writing homework task for professor @cryptokraze , whitch is about "Break Resistance Break strategy for trading". So let me begin the speciriics of task without dodging.

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What do you understand about the Concept of Break Retest Break Strategy? Give Chart Examples from Crypto Assets. Retest shown by one long arrow.

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Before understanding the concept of Break Resistance Break strategy, brief recapitulation of basic concepts like support and resistance seems necessary for easy understanding of the concept of BRB strategy.

Support represnts a price level where a dowtrend is expected to stop or we can say price is expected to go up . So it can be used as buy signal by traders. While resistance represents the price level where an upward trend is expected to stop, which means price of an asset is expected to come down. So it can be used as sell signal by traders.
Above principle is not universal, so sometimes market doesn't respect these levels but continues to go in either up or down direction although not linearally but in zig zag manner (impulsive move followed by pullback) . So those scenarios are known as "trend continuation patreens".

^{ETH/USD showing BRB at resistance}

Trend continuation pattern in bullish market goes on breaking previous resistance levels and keeps on making new highs ( higher high pattern) with price pull backs ( retesting or correction- higher low) each time before making new highs because market never goes up or down in a straight line but does so in a zigzag manner . The phenomen of market structure that keeps on breaking previous resistance levels and making new highs has been called Break Resistance Break strategy at resistance level.

Similar phenomenon can be seen during downtrend, where trend continuation pattern keeps on breaking support levels and makes new lows ( lower low pattern) with price pull backs ( retesting or correction ) in between. This strategy has been called break resistance break at support level.

ETH/USD showing BRB at support. Retest is shown by 2 upward projecting arrows.

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

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Chart Marking for Buy scenerio.

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In the above candlestick chart of ETH/USDT, I have marked different resistance levels and I have also shown price breakout and retesting levels. As this is an uptrending market shown above, so buy order can be placed. But where to place buy order, that will be exactly shown in the next question.

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Chart marking for sell scenario

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In the above, ETH/USD chart , different support levels have been marked , in addition breakout and retesting levels have also been labeled. The first break out is small and may not be clearly visible but the second breakout is clearly visible. As market is in downtrend, so sell scenario exists but where exactly should we sell , that will be shown in the next question.

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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)

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Trade Entry Criteria for BRB Strategy

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Entry Criteria for Buy Position.

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Firstly market should be in uptrend to place any buy order and where to place buy order, let's spot that.

• First we need to mark a resistance (R1) level and than wait for price to break that resistance.

• Wait for price to make a new resistance level ( R2) and than retest towards R1. Here resistance ( R1) will become support for R2 .

• Wait for price to break above R2 just to validate the breakout .

• Place buy order just above R2 level.

^{ETH/USD chart on 5 minute time frame showing Buy Entry Criteria. R1 = Resistance ist level, R2 = second Resistance level}

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Entry Criteria for Sell Position.

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Firstly market should be in downtrend to place any sell order and where to place sell order, let's spot that.

• First we need to mark a support (S1) level and than wait for price to break that support level.

• Wait for price to make a new support level ( S2) and than retest towards S1. Here
  previous support ( S1) will become Resistance for new support (S2).

• Wait for price to break S2 just to validate the breakout .

• Place sell order just below S2 level.

^{ETH/USD chart on 5 minute time frame showing Sell Entry Criteria. S1= Ist support level, S2= second support level}

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Trade Exit Criteria for BRB Strategy

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To exit from market, two scenarios exist, either we are in profit and we manually exit after booking profit at certain level or we may exit on its own when our stop loss gets hit.

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Exit Criteria for Buy Position

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• We need to set stoploss and take profit level at the time of taking trade. If the trade doesn't go in intended direction and stop loss gets hit, we will exit by default with minimum , expected and preset loss.

• General principle to set stoploss is below the resistance level where we entered. However in an continuous uptrend, training stoploss is ideal to use.

• If the price goes in favourable direction than we will exit by booking profit. To begin with take profit level should be equal to stoploss level ( 1:1 Risk Reward Ratio).

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Exit Criteria for Sell Position

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• We need to set stoploss and take profit level at the time of taking trade. If the trade doesn't go in intended direction and stop loss gets hit, we will exit by default. .

• Stoploss is just above the support level .

• If the price goes in favourable direction than we will exit by booking profit. To begin with, take profit level should be equal to stoploss level ( 1:1 Risk Reward Ratio).

• As trading experience increases, one can take more risks and gain more profit as well.

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

For this task, i am. Using my OctaFx demo trading account and by making use of BRB, i have placed following trades.

Trade 1 : LTC/USD

Upon analysing the market, i realized that the market is in initial downtrend phase. So i placed sell order for LTC/USD at 133.08 USD. Now we will see after sometime, how our trading decision formed on the basis of our understanding of BRB goes:

^{LTC/LSD - M5 set up used}

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After sometime, we again checked the credibility of our decision. Let's see how it goes.

We can see, price further dipping down and has reached 131 USD. So clearly our decision was right based on BRB.

Trade 2: E5H/USD

Upon analysing market structure of ETH , we can see that market is in downtrend, so sell order has to be placed to prevent further loss. I placed sell order amd let's look at our decision later .

Sell order for ETH places at ETH price of 973.4

After sometime , we checked whether we were right or not. What we saw is represented below by the graph.

We can aee ETH price further dipping down and has reached 939.4 . So by the time of taking, second screenshot, we were clearly able to benefit by about 34 USD by following BRB strategy

Conclusion

Break resistance Break strategy when used on trend continuation pattern can be beneficial tool for traders when looked at different time frames. It is simple but useful price pattern. Lower time frames are used to spot entry/exit points where as Hugher time frames can be used to monitor the progress of market. Stoploss and take profit levels are two vital levels to set for every taken trade.