A trading strategy using three confirmations: price consolidates above support, breaks below with a volume spike, then retests as resistance for entry. Stop goes above the retest candle, target is the next support level. Skip the setup if any confirmation fails.
If I had to use one trading strategy for the rest of my life, this would be it. I call this setup volume confirmation because it's based on 3 confirmations that all work together to give me the perfect trade. And in the next 60 seconds, I'm going to show you all the entire thing. I wait for price to trade near a support level and then consolidate directly above it. The consolidation is not going to happen every single time, but when it does, I like marking the high and the low of this consolidation range. I wait. Price will either break below the low and trade into support. And when it does this, I like to check volume and the order flow. Does it spike? If it doesn't spike, I've removed the setup and I move on because the market most likely is gonna return back to consolidation. But if volume does spike, I have a really good setup on my hands. When it spikes on a breakout of the support level, it means real sellers stepped in and it confirms that the move is real and continuation is likely. This is the setup that I'm looking for. Now to enter, I like letting price retest the support level, reject sharply, as it shows now that the support level now turns into resistance. I put my stop tightly above the retest candle and my target is the nearest level of support below for a low risk, high reward trading setup.
