Trends
You've all probably heard that trends are your friend in the trading market and you definitely want to understand how trend trading continues. In a trend, the price will move impulsively and then reverse. The next wave will make another impulsive move in the direction of the trend and then pull back. This pattern will continue to run in the trend until we get a break in the market structure.
Most of you know the concept of Support and Resistance because it was covered in the previous season at Crypto academy. This is basically the level from which the price has recovered and reversed. Generally, traders think that these points are impenetrable and we should sell at resistance and buy at support. This is not true in all cases because these points can be broken in a strong trend and the price continues its movement.
This is where the Break Retest Break (BRB) strategy will come into play and we will trade on the break of these points. These points of support and resistance do not have to be at extreme highs or lows but they can also be in the middle of the market structure.
BRB at Resistance Level |
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- The price broke the resistance level creating a swing high point. It will then rest the resistance level and once again break the previous swing point. This is why I call it the Break-Retest-Break Strategy and this price action pattern keeps happening over and over again.
BRB at Support Level |
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- The price broke the support level creating a swing low point. It will then break the support level and once again break the previous swing point. This is why I call it the Break-Retest-Break Strategy and this price action pattern keeps happening over and over again.
THANK YOU
By
@dani0661
Twitter
Thanks for taking the time to educate us on important crypto trading concept I really do appreciate this my friend, strategies such as break and retest and support and resistance is really beneficial
Thank's
I'm glad I got to learn about break retest break strategy. Your article is really enlightening. Thanks for sharing.
Thank's