Break and Retest Strategy in Forex Trading — Transcript

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1. 0:00so many people every single day
2. 0:03try to get into trades too early before
3. 0:05they have the actual confirmation to try
4. 0:07to get the absolute best price that they
5. 0:09possibly can
6. 0:10and it's the one thing messing you up
7. 0:12more than anything else
8. 0:14you are not waiting for a break and a
9. 0:17re-test
10. 0:18so in this video i'm going to show you
11. 0:20exactly how to use a break and re-test
12. 0:22strategy on every single trade whether
13. 0:25you're trading market structure
14. 0:26or moving averages
15. 0:30welcome back to the channel everybody my
16. 0:32name is ardy and this
17. 0:34is the moving average a show where we
18. 0:35discuss everything day trading to keep
19. 0:37you
20. 0:38profitable on a consistent basis so how
21. 0:40many times have you actually been
22. 0:42watching a price action and thinking
23. 0:44okay this is my entry point i know it's
24. 0:46gonna break this
25. 0:47and it's just gonna go up to the moon
26. 0:49you get in on your trade
27. 0:50and then it starts reversing then it
28. 0:52goes so far negative that you're forced
29. 0:53to close a trade so you don't get margin
30. 0:55called and you take the loss and you're
31. 0:56like god i should have just waited
32. 0:58the amount of times that i've said god i
33. 1:00should have just waited
34. 1:01would blow your mind so what i want you
35. 1:04to do is focus on
36. 1:05patience i know you're staring at the
37. 1:07charts i know you're waiting for your
38. 1:08entry
39. 1:09but what you need to do is be extra
40. 1:10patient and actually wait
41. 1:12for a good entry a break and re-test
42. 1:15of any market structure or moving
43. 1:17average is a great entry point so let's
44. 1:20jump into the charts i'm going to show
45. 1:21you an example on
46. 1:22aud usd so taking this out to a one hour
47. 1:26chart i'm gonna put up some levels of
48. 1:28support and resistance here we've got a
49. 1:30level here
50. 1:31we've got a level here and we've got a
51. 1:33level here you can clearly see that we
52. 1:35were having
53. 1:36some resistance here some resistance
54. 1:38here
55. 1:39support being formed here and support
56. 1:41being formed here
57. 1:42if you are trading this on the one hour
58. 1:45and you see it stuck in this range
59. 1:46rejecting and then coming back down
60. 1:48once we've broken through that you're
61. 1:51like cool
62. 1:52most people get in on a trade the second
63. 1:54that it breaks
64. 1:55and that is a huge mistake now i've got
65. 1:57this zoomed in
66. 1:58the most common mistake is right here a
67. 2:00lot of people see this level being
68. 2:02formed
69. 2:03with the bodies of these candles they're
70. 2:05being too
71. 2:06literal with their levels of support and
72. 2:08resistance
73. 2:09you just kind of want a general area of
74. 2:11it it doesn't have to be an exact
75. 2:13number so what happened here is this
76. 2:16long wick came down people see this
77. 2:18downtrend
78. 2:19and then at one point this candle was
79. 2:21all red facing down so people got in
80. 2:23and then got stopped out right here they
81. 2:25didn't wait for a break and a re-test
82. 2:28they just waited for it to break this
83. 2:29candle and then got in on a short and
84. 2:31got stopped out right here
85. 2:33then we clearly got a break a small
86. 2:36retest
87. 2:37another retest and then a continuation
88. 2:39down this
89. 2:40is what you should have waited for to be
90. 2:42comfortable
91. 2:43to get in on your trade clear movement
92. 2:46below that price and a re-test
93. 2:48you can see we broke we retested came
94. 2:51down
95. 2:52tried to retest but couldn't get to that
96. 2:54level and then continued down
97. 2:56that's a comfortable entry for a trade
98. 2:58and this works on any time frame
99. 3:00imagine looking at a one minute chart
100. 3:02and you can clearly see we have a level
101. 3:04here
102. 3:05it's not as significant as on the one
103. 3:07hour chart but it's still
104. 3:08something we came down we came up to
105. 3:11retest
106. 3:12and then continued down but on a one
107. 3:14minute it's better to use moving
108. 3:15averages so
109. 3:16imagine if we put up the 21 to 50 and
110. 3:18the 200
111. 3:19then you can clearly see the trend of
112. 3:22the price
113. 3:22we are trading above the moving averages
114. 3:24it's trending up we are trading below
115. 3:26the moving averages we are trending down
116. 3:28now this is a break and a retest of the
117. 3:30moving averages
118. 3:31which is the strategy that i like to do
119. 3:33every single day so we've clearly broken
120. 3:36through these moving averages
121. 3:37starting to consolidate a little bit and
122. 3:39now we're trading below them
123. 3:41it's consolidating just a little bit and
124. 3:44then it
125. 3:44tests this finds a resistance
126. 3:48and then continues down it comes back up
127. 3:50again
128. 3:51and tests it as resistance and keeps
129. 3:54moving down these are the breaks and the
130. 3:57retests
131. 3:58when these retests happen and you're
132. 4:00clearly seeing a downtrending market
133. 4:03you can use that as your entry point for
134. 4:05your position
135. 4:06it's super super simple just be patient
136. 4:09wait for the break and the retest
137. 4:12whether you're trading market structure
138. 4:14which you can learn in this video or
139. 4:15you're trading moving averages
140. 4:17which you can learn in this video always
141. 4:20wait for the break
142. 4:21and the retest so if you guys are still
143. 4:23watching this video that means that you
144. 4:25like the video
145. 4:26so if you wouldn't mind click the like
146. 4:28button down below my face right now
147. 4:30subscribe if you have not already and
148. 4:33we will see you in the next one