EURGBP TradeEURGBP Buy Trade according to liquidity sweep. EURGBP has already liquidated buyers now there are huge chances that it would pump.
Fibonacci
Sherwin-Williams | Chart & Forecast SummaryKey Indicators On Trade Set Up In General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Notes On Session
# Sherwin-Williams
- Double Formation
* 270.00 USD | Support Area | Subdivision 1
* Neckline | Uptrend Bias
- Triple Formation
* Flag Structure | Continuation Area Attempt | Subdivision 2
* 400.00 USD Resistance Area
* Triple Bottom | Retracement 50% | Subdivision 3
Active Sessions On Relevant Range & Elemented Probabilities;
London(Upwards) - NYC(Downwards)
Conclusion | Trade Plan Execution & Risk Management On Demand;
Overall Consensus | Buy
Technical Analysis Report: Balmer Lawrie & Co. Ltd.Overview:
Balmer Lawrie & Co. Ltd. is showing key technical setups, offering potential trading opportunities. Here's a concise breakdown based on the daily chart analysis.
Key Observations:
1.Fibonacci Retracement:
The stock retraced to the 0.5 level at INR 225.00 and rebounded from the 0.382 level (INR 202.40).
2.Chart Patterns:
An inverse head-and-shoulders pattern signals potential reversal, with a target of INR 263.45 if INR 249.54 is breached.
3.Moving Averages:
Near-term support: 20-day EMA (INR 232.30) and 50-day EMA (INR 238.84).
Resistance: 200-day EMA (INR 245.56), aligning with the pattern neckline.
4.RSI Momentum:
RSI at 58.36 suggests mild bullish momentum, with room for upside.
Key Levels to Watch:
Resistance: INR 249.54, INR 263.45, INR 279.95.
Support: INR 238.00, INR 225.00, INR 202.40.
Potential Scenarios:
Bullish: A breakout above INR 249.54 could lead to INR 263.45 and potentially INR 279.95.
Bearish: A rejection near INR 249.54 may push prices back to INR 238.00 or lower.
Volume Analysis:
Rising volume indicates renewed buying interest, supporting a bullish outlook.
Conclusion:
Balmer Lawrie & Co. Ltd. is poised for a potential breakout above INR 249.54. Traders should monitor key levels closely and manage risk accordingly.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Conduct your own research before investing.
How Can You Use a Break and Retest Strategy in Trading?How Can You Use a Break and Retest Strategy in Trading?
Trading strategies help traders navigate the financial markets with greater confidence. One such approach is the break and retest strategy, which focuses on key support and resistance levels. This article explores the break and retest strategy in detail, providing insights and practical examples to help traders apply it in their trading activities.
Understanding the Break and Retest Strategy
The break and retest strategy is popular among traders who aim to capitalise on clear market movements. At its core, this strategy revolves around identifying key support and resistance levels on a price chart.
Here’s how it works: When the price breaks through a support or resistance level, it signals a potential shift in market sentiment. For example, if a stock breaks above a resistance level, it suggests increasing buying interest. Traders then watch for the price to return to this newly broken level—known as a retest in trading. During the retest, the former resistance now acts as support, providing a potentially more attractive entry point for traders looking to join the trend.
This strategy aligns well with trending markets, where prices move consistently in one direction. It allows traders to take advantage of momentum while managing their entries potentially more effectively.
The Mechanics of Break and Retest Trading
Implementing the break and retest strategy involves a clear sequence of steps that traders follow to identify and act on potential market moves. Here’s a breakdown of how this strategy typically operates:
1. Identifying Key Levels
Traders begin by pinpointing significant support and resistance levels on their charts. Accurate identification is crucial, as these levels form the foundation of the strategy.
2. Monitoring for a Breakout
Once the key levels are established, traders watch for the price to break through one of these barriers, in line with a broader trend. A breakout occurs when the price moves decisively above resistance or below support, often accompanied by increased trading volume. This surge in volume indicates stronger market interest and can validate the breakout’s legitimacy.
3. Waiting for the Retest
After the breakout, the price typically retraces to test the broken level. For instance, if the price breaks above a resistance level, it may pull back to that same level, which now acts as support. This retest phase is critical as it offers a second confirmation of the breakout’s strength.
4. Confirming the Retest
During the retest, traders look for confirmation signals to ensure the breakout is genuine. These signals can include specific candlestick patterns, such as pin bars or engulfing candles, and continued high trading volume. Successful confirmation suggests that the new support or resistance level will hold, increasing the likelihood of a sustained trend.
5. Entering the Trade
With confirmation in place, traders often enter the market, aiming to ride the new trend. They may set stop-loss orders slightly below the new support (in the case of a breakout to the upside) or the new resistance (in case of a breakout to the downside) to manage potential risks.
6. Managing the Trade
Effective trade management involves setting target levels based on previous price action and adjusting stop-loss orders as the trade progresses. This helps to lock in potential returns and potentially protect against unexpected market reversals.
Break and Retest Example Strategy
Consider this EURUSD 15-minute chart, which displays a clear bearish trend. This trend is highlighted by the 50-period Exponential Moving Average (EMA) sloping downward, with the price generally staying below it. Recently, the price broke below a key support level on higher-than-average volume, signalling a potential opportunity for traders to apply the break and retest strategy.
In this scenario, there are two support levels to monitor. The first is a more significant support level. Trading at this level can allow traders to enter the market quickly, though it comes with a less favourable risk-reward ratio.
The second support level is found within the recent brief retracement. This level offers a better risk-reward ratio, but there's a chance the price may not retrace deeply enough, potentially causing traders to miss the trade.
The entry point is identified by a candle with a wick longer than its body (a pin-bar on the 30m chart), indicating rejection of higher prices as the market retests the second broken support level. Once this candle closes, traders can enter a market order.
Stop losses would typically be placed either above the last major swing high or above the 50-period EMA, depending on individual risk tolerance. Take-profit targets could be set at a 1:3 risk-reward ratio or at the next significant support level, where a price reversal may be anticipated.
Improving the Break and Retest Strategy
Enhancing the break and retest strategy involves integrating additional tools and techniques to refine trade decisions. Here are several methods to consider:
1. Incorporating Additional Indicators
Using break and retest indicators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) can provide valuable insights. For instance, an RSI crossing below 70 during a bearish breakout may indicate weakening momentum, supporting the retest. Similarly, the MACD crossing above its signal line or the MACD histogram rising above 0 can confirm the uptrend’s strength, aiding in more precise entry points.
Explore these indicators and more than 1,200+ trading tools in FXOpen’s free TickTrader trading platform.
2. Multi-Timeframe Analysis
Examining charts across different timeframes helps in gaining a broader market perspective. A breakout observed on a 4-hour chart gains additional confirmation when a strong trend is also visible on a daily chart. This alignment across timeframes increases the reliability of the trade setup.
3. Utilising Fibonacci Retracements
After a breakout, prices often retrace deeper into the previous high-low range—not always to the most extreme point. Applying Fibonacci retracements to the high/low of the breakout (high in a bearish breakout and low in a bullish scenario) and the new low or high can help identify optimal retest points, particularly at the 38.2%, 50%, and 61.8% levels. These levels typically offer better risk-reward ratios compared to the extreme points.
4. Incorporating Fundamental Analysis
Supporting technical breakouts with fundamental factors, such as economic reports or news events, strengthens the strategy. For example, a breakout aligned with positive economic data may have a higher probability of sustaining the new trend, providing traders with greater confidence in their decisions.
Advantages of the Break and Retest Strategy
The break and retest strategy offers several advantages that can enhance a trader’s approach to the markets:
- Increased Confidence through Confirmation: The retest serves as an additional validation of the breakout, boosting trader confidence in their entry decision and reducing hesitation.
- Better Risk Management: Setting stop-loss orders based on the retest level provides a clear risk boundary. This structured approach aids in potentially managing losses.
- Alignment with Market Trends: This strategy naturally aligns trades with the prevailing market trend. By trading in the direction of the breakout, traders can take advantage of sustained movements.
- Versatility Across Markets: The breakout and retest strategy can be applied to various financial instruments, including forex, stocks, and commodities. Its adaptability makes it a valuable tool in diverse trading environments.
- Scalability and Flexibility: This strategy can be adapted to different timeframes and trading styles, making it suitable for both short-term and long-term traders seeking to implement a consistent approach.
Potential Challenges and Considerations
While the break and retest strategy can be a powerful tool, traders may face several challenges when implementing it:
- False Breakouts: Not every breakout leads to a sustained trend. Sometimes, the price moves beyond a support or resistance level only to reverse shortly after. Recognising these false signals is crucial to avoid entering trades that may quickly turn against expectations.
- Market Conditions: According to theory, this strategy performs best in trending markets. In sideways or highly volatile environments, breakouts can be less reliable, making it harder to distinguish genuine opportunities from random price movements.
- Timing the Retest: Accurately determining when the price will retest the broken level can be challenging. Entering too early may expose traders to unnecessary risk, while waiting too long might result in missed opportunities if the retest doesn't occur as anticipated.
- Reliance on Confirmation Signals: While additional indicators like RSI or MACD can enhance the strategy, over-reliance on these tools can complicate decision-making. Traders need to balance multiple signals without becoming overwhelmed or confused.
- Emotional Discipline: Maintaining discipline during retests is essential. Traders might feel pressured to act quickly if the market moves unexpectedly, leading to impulsive decisions that deviate from their trading plan.
The Bottom Line
The break and retest strategy offers a structured approach to navigating market movements, combining precise entry points with effective risk management. By understanding and applying this method, traders can potentially enhance their trading decisions and align with prevailing trends. To put this strategy into practice across more than 700 markets, consider opening an FXOpen account and gain access to four advanced trading platforms, low trading costs, and rapid execution speeds.
FAQ
What Is a Retest in Trading?
A retest occurs when the price returns to a broken support or resistance level after an initial breakout. It serves to confirm the strength of the breakout, helping traders decide whether the new trend will continue or if the breakout was false.
What Is the Break and Retest Strategy?
The break and retest strategy involves identifying a breakout of a key support or resistance level and then waiting for the price to return to that level. Traders use this retest as a confirmation to enter the market, aiming to follow the new trend with reduced risk.
What Is the Win Rate of the Break and Retest Strategy?
The win rate of the break and retest strategy varies depending on market conditions and how the strategy is applied. Consistent application and effective risk management are crucial for achieving better results.
How Many Times Should I Backtest My Strategy?
Backtesting should be done extensively across different market conditions and timeframes. According to theory, traders need to test a strategy on at least 100 trades to ensure its reliability and to understand how it performs in various scenarios.
Does the Market Always Retest?
No, the market does not always retest broken levels. While retests are common, they are not guaranteed. Traders should use additional confirmation signals and be prepared for both possibilities when applying the break and retest strategy.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
XAGUSD BUY CONFIRMATIONSilver has been on a bullish trend bouncing off the ascending trendline, With a break in structure creating a W pattern on the ascending trendline it confirmed the bullish bias. Patiently waited for the retest of the breakout area. A good setup for a buy after all the entry confirmations are met.
BTCUSDT 100K resistance zone and ATH can dump the priceAs we can see price now is near 100K$ resistance zone and ATH resistance and we can expect short-term fall now to the targets like 90K$ or more dump even like the prices mentioned on the chart.
long-term BTC is still bullish and after range for couple of weeks and correction and short-term fall we can expect breakout of ATH and targets like 120K$.
DISCLAIMER: ((trade based on your own decision))
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SHIBUSDT major daily support ahead Soon i am looking for at least +70% pump for SHIBUSDT and it may happen now after breaking red zone resistance or after more correction to the major daily support zone and pump from there.
DISCLAIMER: ((trade based on your own decision))
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DOGEUSDT after short-term fall or not heavy pump to 0.7$ ahead As we can see price is now near strong resistance zone and we may have short-term fall or correction to the downside like red arrows and then after touching major daily supports next phase pump is expected to the new High likes 0.5$ and 0.75$.
DISCLAIMER: ((trade based on your own decision))
<<press like👍 if you enjoy💚
NQ Power Range Report with FIB Ext - 12/11/2024 SessionCME_MINI:NQZ2024
- PR High: 21442.00
- PR Low: 21417.25
- NZ Spread: 55.25
Key scheduled economic events:
08:30 | CPI (Core|MoM|YoY)
10:30 | Crude Oil Inventories
13:00 | 10-Year Note Auction
Break below 21430 support into inventory response off previous ATH breakout
- Daily print advertising rollover back to Keltner avg cloud
- Failed QQQ ATH breakout gap fill below 520
Session Open Stats (As of 12:45 AM 12/11)
- Weekend Gap: N/A
- Gap 10/30/23 +0.47% (open < 14272)
- Session Open ATR: 260.71
- Volume: 16K
- Open Int: 279K
- Trend Grade: Bull
- From BA ATH: -1.1% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 22096
- Mid: 20954
- Short: 19814
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
BA: Back Adjusted
BuZ/BeZ: Bull Zone / Bear Zone
NZ: Neutral Zone
EURUSD Trading Idea EUR/USD dipped 0.2% on Tuesday, marking its third straight decline as it approaches the key 1.0500 level. The Euro’s recent bullish momentum is fading, with traders shifting to a cautious stance ahead of two major events:
US CPI Data (Wednesday): A pivotal release ahead of the Fed's final 2024 meeting. Inflation is expected to tick up to 2.7% YoY (from 2.6%), with core CPI holding steady at 3.3%. Any signs of stalled progress could dash hopes for a third consecutive rate cut on December 18, fueling USD volatility.
ECB Rate Decision (Thursday): The ECB is widely anticipated to deliver another quarter-point rate cut. Forecasts suggest the Main Refinancing Operations Rate will be trimmed to 3.15% (from 3.4%), and the Deposit Facility Rate is expected to drop to 3.0% (from 3.25%).
EUR/USD Technical Analysis: Entry Opportunity with SMC and Fibonacci
Using Smart Money Concepts (SMC) and Fibonacci retracement, the key zone between the 0.71 and 0.79 Fibonacci levels is shaping up as a critical area of interest. Following the creation of a fair value gap at the last high, the price is now testing the 50% Fibonacci level, setting the stage for a potential trade setup.
Trade Setup:
Entry Point: 1.05520 (aligned with the 0.75 Fibonacci level)
Stop Loss: 1.05697 (just above the 0.79 Fibonacci level for added risk protection)
Take Profit: 1.04990 (targeting below the fair value gap for optimal risk-to-reward)
Risk/Reward Insights:
This setup offers a Risk/Reward Ratio of 2.98. By risking 17.7 pips to gain 53 pips, you're maximizing reward relative to risk.
Disclaimer:
Trading carries significant risks, and it’s essential to practice strict risk management. Always trade with a clear plan, use stop-loss orders, and never risk more than you can afford to lose. This analysis is not financial advice—ensure you understand the risks before making any decisions.
Follow for more trading ideas, strategies, and insights to level up your trading game!
$GOAT Needs to Apply To McDonald'sI really wanted to buy some MIL:GOAT but this is such a horrible chart.
Down ~60% in less than a month.
Can't even hold the 9D EMA.
3 Black Crowes formed.
Next areas of interest are $0.42 and $0.33
Could be forming a McDonald's pattern 😿
XAGUSD BUY OPPORTUNITYOANDA:XAGUSD
Bullish Stracture. Broken Stracture to the upside . possible Buy Opportunity.
AUDUSD SELLING OPPORTUNITY.FX:AUDUSD
Grabbed Liquidity and Broke stracture to the downside with good momentum.possible short opportunity.
GBPAUD BUY OPPORTUNITY.OANDA:GBPAUD
Gbpaud
Higher Time structure is bullish. 4H tf we got break on the upside with good bullish momentum. possible buy opportunity if it retrace back to 0.5 level.
$APT 1D | HTF w/ Market Structure notesI am following this chart and took some notes on the market structure of Aptos which is very useful for the future price action. As long as we defend the swing low, " S-LOW " the price tends to go to the higher levels.
Happy Trading
"GBP/USD: Expert Buy/Sell Strategies"FX:GBPUSD Chart Analysis: GBP/USD 1-Hour Timeframe
Current Market Structure
Price Level: The price is currently trading around 1.27749.
Resistance Zone: Around 1.27800 (marked as RB).
Support Zone: Around 1.27435 (marked as BB).
Market Volatility: Multiple Break of Structure (BOS) and Change of Character (CHoCH) points indicate a volatile market with frequent shifts in sentiment.
Buy Strategy
Confirmation: Wait for the price to break above the resistance band (RB) at 1.27800 with a strong bullish candle.
Entry: Enter a buy position once the price closes above 1.27800.
Stop Loss: Place a stop loss below the recent swing low or below the support band (BB) at 1.27435.
Take Profit: Target the next significant resistance level or use Fibonacci extensions for potential targets.
Sell Strategy
Confirmation: Wait for the price to break below the support band (BB) at 1.27435 with a strong bearish candle.
Entry: Enter a sell position once the price closes below 1.27435.
Stop Loss: Place a stop loss above the recent swing high or above the resistance band (RB) at 1.27800.
Take Profit: Target the next significant support level or use Fibonacci retracement levels for potential targets.
Additional Confirmations
RSI: Look for RSI to be above 70 (overbought) for sell signals and below 30 (oversold) for buy signals.
MACD: Look for MACD line crossing above the signal line for buy signals and below the signal line for sell signals.
Volume: Ensure there is significant volume supporting the breakout or breakdown to confirm the move.
This should provide you with a structured approach to trading the GBP/USD pair based on the current chart setup and technical indicators. If you have more specific questions or need further clarification, feel free to ask! FX:GBPUSD
EUR/USD: Profitable Trading TacticsFX:EURUSD Key Observations:
Current Price: 1.06413 USD
Significant Levels:
Order Block (OB): 1.06413 USD
Resistance: 1.05529628 USD
Support: 1.06413 USD
Technical Indicators:
Volume Profile: High trading activity around 1.06413 USD
Relative Strength Index (RSI): Currently around 46.95, suggesting neutral conditions
MACD (Moving Average Convergence Divergence): Shows a bearish momentum with the MACD line crossing below the signal line
Fibonacci Retracement Levels:
0.618: 1.05413264 USD
0.705: 1.05473090 USD
0.786: 1.05529628 USD
Buy Strategy:
Entry Point:
Consider entering a buy position if the price retraces to the support level around 1.06413 USD or the lower Fibonacci levels (0.618 or 0.786).
Confirmation:
Look for bullish candlestick patterns (e.g., hammer, bullish engulfing) and a bounce from the support level.
Ensure the RSI is not in the overbought zone and the MACD shows a bullish crossover.
Target:
Set the target around the resistance level at 1.05529628 USD or higher Fibonacci levels.
Stop Loss:
Place a stop loss below the support level or the recent swing low.
Sell Strategy:
Entry Point:
Consider entering a sell position if the price reaches the resistance level around 1.05529628 USD and shows signs of reversal.
Confirmation:
Look for bearish candlestick patterns (e.g., shooting star, bearish engulfing) and a rejection from the resistance level.
Ensure the RSI is in the overbought zone and the MACD shows a bearish crossover.
Target:
Set the target around the support level at 1.06413 USD or lower Fibonacci levels.
Stop Loss:
Place a stop loss above the resistance level or the recent swing high.
By following these strategies and confirmations, you can make informed decisions based on the observed chart patterns and technical indicators. Happy trading!
Gold Spot Analysis: Key Entries & ExitsFXOPEN:XAUUSD Gold Spot Analysis: Key Entries & Exits
Key Observations:
Current Price: 2,694.57 USD
Significant Levels:
Order Block (OB): Around 2,642.27 USD
Resistance: Around 2,694.57 USD (Equal Highs)
Support: Around 2,642.27 USD
Technical Indicators:
Volume Profile: High trading activity around 2,642.27 USD
Relative Strength Index (RSI): Currently at 73.58, indicating overbought conditions
MACD (Moving Average Convergence Divergence): Bullish momentum with the MACD line above the signal line
Fibonacci Retracement Levels:
0.382: 2,682.41504 USD
0.5: 2,678.37 USD
0.618: 2,674.3246 USD
0.786: 2,671.34246 USD
Buy Strategy:
Entry Point:
Consider entering a buy position if the price retraces to the support level around 2,642.27 USD or the lower Fibonacci levels (0.618 or 0.786).
Confirmation:
Look for bullish candlestick patterns (e.g., hammer, bullish engulfing) and a bounce from the support level.
Ensure the RSI is not in the overbought zone and the MACD shows a bullish crossover.
Target:
Set the target around the resistance level at 2,694.57 USD or higher Fibonacci levels.
Stop Loss:
Place a stop loss below the support level or the recent swing low.
Sell Strategy:
Entry Point:
Consider entering a sell position if the price reaches the resistance level around 2,694.57 USD and shows signs of reversal.
Confirmation:
Look for bearish candlestick patterns (e.g., shooting star, bearish engulfing) and a rejection from the resistance level.
Ensure the RSI is in the overbought zone and the MACD shows a bearish crossover.
Target:
Set the target around the support level at 2,642.27 USD or lower Fibonacci levels.
Stop Loss:
Place a stop loss above the resistance level or the recent swing high.
By following these strategies and confirmations, you can make informed decisions based on the observed chart patterns and technical indicators. Happy trading!
#XRP/USDT 12h / Elliott-Fibonacci-Financial ChannelAccording to Elliott Wave theory, the price rose during the impulsive first wave and corrected in the second wave as an ABC zigzag to the 0.382 Fibonacci level. This aligns with Elliott's rules, suggesting that the correction of the fourth wave will likely be at 0.5 - 0.618.
Based on the impulse of the first wave, the target for the third wave is 4.25, followed by a correction within the fourth wave.
Using Fibonacci projections by shifting the grid from the start of the first wave impulse to the end of the second wave, the target for the third wave aligns with Fibonacci 1.618 (5.82). Without shifting the Fibonacci grid, the target for the third wave at Fibonacci 1.618 is 4.40.
To confirm this scenario, the price must break above the peak of the descending financial channel. Successful trades!
LTC gets a strong reboundHello everyone, I invite you to review the LTC pair to USDT chart, looking at the one-day interval.
As we can see, the price moved dynamically from the downward trend line, but here we can also see a sharp return near the trend, as well as a drop to a very strong support zone from $107 to $96, if the zone does not maintain the price, we will be able to observe an equally rapid decline to support at $83.
Here it is worth looking at the place where the price made a quick change in direction, as you can see, we bounced off the strong resistance zone from $142 to $152, only the exit from this zone can give positive energy for an upward movement towards the second resistance zone from $200 up to $214.
It is worth looking at the RSI indicator, which shows how the downward movement resulted in a rebound close to the support line, which leaves room for a new future price increase.
#BTC - Ready to pivot and head to 108k
In my latest post I mentioned that we might visit 93-95k. Sadly for alt coins that resulted in a massive bloodbath, but fear not, it is a healthy pullback meant to clear leverage, that will fuel the next move on #BTC
What's next for BINANCE:BTCUSDT ?
1. After the reaction swing high to 102k price now retraced into the 0.618 zone
2. It also fits perfectly on the fib time zone, and as we've seen in the past, it signalled almost perfectly the reversal in the trend
3. Given the massive sell-off from alts, I believe now it has enough strength to move to the extension zone which is around 108k
4. Based on the impulse we should know if it's just a manipulation or it will continue to go higher
Personally I think we should see another sweep from 108k to 90-95k, and only afterwards we can continue higher to 120k
What are your thoughts?
In the Golden Zone. Will it Retrace?Based on the Fibs i think it can retrace back up. Had to have a pull back.
JUST A RETRACEMENTdont worry guys just a retracement we are going through, major alts also bleed so no worry. cant go to moon in a single move, correction is inevitable . we are in alt season let btc.d break its support then see the magic MEXC:TUPUSDT BITGET:TUPUSDT
