A short-trading method that waits for price to break below a consolidation on high volume, then enters on the retest rejection with a tight stop. Target is the next support level below, offering high reward relative to risk.
I'm out of words. This strategy is so simple. And if you're not already trading volume to catch entries like this, then give me 30 seconds to change your mind. Step 1, I like finding a support level with price consolidating directly above it. I like marking the high of this range and the low of the range. And then step 2 is I like to wait for price to break below the low. And I am observing the order flow. I'm checking volume. A spike at that exact moment means that real sellers just entered the market. And I'm observing if the move is real and genuine buy if the market is going to have continuation down. Step 3 is I now wait for price to come back up into this support level, and when it does, I'm looking for a sharp rejection back down. Sellers are defending their position, and the rejection shows that sellers are not done. They're defending price for more downside. This right here is my entry, and my stop sits just above the retest candle high So it's very tight, meaning I get a small risk and a very high reward trading setup, and my overall target is the nearest support level below.
