Kardec Trader walks through a break-and-retest strategy on Apple stock. Enter near $202 after an engulfing breakout candle, set stop-loss at $200 if price rejects it, and take first profits at the $204 breakout high.
$202
$200
$204
We're going to talk about how to set up our risk.
Using the break and retest.
Say we just got.
Our bull flag.
Breakout we just.
Got our candle that engulfed the previous action so let's go ahead and say that's $202 on Apple. So right now if we enter there and our retest level is 200200 is now my invalidation I'm long apple off the 200 level. My stop loss or my invalidation is price action that.
Starts to clearly show.
Me that it's rejecting 200 we start to see candles rejecting back under 200 then I am out of that trade. My stop loss is now under 200 that's my inval.
Let's say our breakout high was up.
Here at $204 that is now my.
First target for a scale off. We hit that price.
Target is we're now going to look to see if that previous.
High of day.
Now becomes another break and retest continuation scale in Right and so.
We can either add.
Or we maintain.
