A trader shares the four-step rule that improved his win-to-loss ratio to 5:1, averaging $6,000 wins versus $1,000 losses. Find a tight consolidation below resistance, wait for a breakout with volume, enter on the retest candle's close, and target the next resistance level.
Chapters
You don't suck at trading. You're losing because you don't know this one rule that took my average win to loss from poor to over 5 to 1, meaning my average win was around $6,000 and my average loss was just $1,000. So what is this rule? Below every significant resistance level, before it even breaks, there's a tight range, price consolidating quietly. This is the market balancing. We need to find that balanced range first. That's the foundation. Then we wait for price to break above the resistance or balance range high. Check volume the second it does. Spike means it's real. Every fading trader is now trapped. We don't enter just yet. Price comes back to that level. One candle pushes back down. Sellers try to reclaim it. The wick forms. The candle then closes back above. That's the entry point. Stop below the candle, target the next significant level above. It's clean, it's repeatable, and there's no guessing behind it. The range confirmed the buyers, the volume confirmed the breakout, the wick confirmed sellers already lost. Every market, every time frame, the exact same way.