A breakout strategy that waits for price to consolidate under resistance, then enters on a retest of the breakout level with volume confirmation. Stop loss goes below the retest candle, profit target at the next resistance level above.
I used to trade on the wrong side of the market every single day, but now my trades are very accurate and it's because I could finally understand this one thing. And it's not what you think. Let me show you what changed my trading forever. I wait for price to approach a resistance level and then consolidate beneath it. Not every approach is going to consolidate, and that's really fine. But when it does, I like to mark the high of that range and then the low of this range. Now I watch it. When price breaks above the high that I just marked, the second it does, I check volume. I look for if it spikes or not. If it doesn't, I move on because it's probably gonna be a fakeout. But if it does spike, I'm looking at a potential winning trade. When it spikes on this breakout, it means real buyers stepped in and it confirms that the move is real and continuation is likely. Now to enter, what I like doing is letting price retest the level, reject it sharply, and this tells me that the resistance high now flipped to support. My stop goes below the retest candle and I'm targeting the the next level of resistance above. If you want the complete system behind this, not just the concept, comment charts below.
