A trader with ten years of experience breaks down a three-step method for finding high-reward trades. Look for price consolidating below resistance, confirm breakouts with volume spikes, and enter on retest rejection with order-flow validation. Stop loss goes just below the retest low.
I've been trading for 10 years now. I've tried almost everything, and the thing that actually works is so simple, it's almost embarrassing. Give me 30 seconds and I'm gonna change the way you look at your charts forever. Step 1: I like to wait for price to consolidate just beneath a resistance level. It's not gonna happen every single time, and that's fine, but when it does, I like marking the high and the low of the range. Then step 2 is waiting for price to break above this high. And I immediately check the order flow and read the volume. If volume spikes, real buyers just stepped in and it confirms the move likely to have continuation. If volume doesn't spike, the market will likely return to the consolidation. And in this case, I could just move on with the setup. And then step 3 is my entry point. I like waiting for price to retest the level, reject sharply, and as soon as it rejects, I enter once the market confirms it with the order flow. Stop goes tightly below the retest low, and that way I aim for a high reward and low risk trading opportunity.
