The Only Break and Retest Trading Strategy You Will Ever Need... (Beginner to Advanced in One Video)

"so that's how the pound canada trade that i had this week played out also had a losing trade that i want to show you as well on the euro pound"

"so here we are on this trade and this was a perfect example of the descending triangle with lower support levels coming in at a similar level of resistance the breakout it was beautiful the market pulled back i got selling pressure just using the conservative entry here we get into my zone we put in a red candle that's selling pressure i jumped into the trade but unfortunately the market did not cooperate with my analysis and just stopped me out"

"and for this trade what i was looking at is another trend continuation retest but i could enter this trade a little more aggressively because of the big breakout we got so we have our previous low here pushing up to a higher high pushing down to a higher low breaking our previous level of resistance after my valid break and since we do have candles continuing to trade above this previous level of resistance i can look for the regular conservative entry so when we get this pullback after the break the retracement breaking what break and retest we get buying pressure green candle a big hammer candle right after that green candle"

"for this you may have let's say 50 trades per month but your win rate may only be like 40 percent"

"waiting on this you will have less entries than using a limit order so you'll have less trades but your win rate will go up something close to fifty percent at least from the testing that i've done"

"the most conservative way to enter a trade like this would be to point out your zone right you have your rising triangle break and re-test pattern then wait for the market to get into that zone and drop down to smaller time frames to look for patterns like double bottoms on those smaller time frames"

"this is going to give you wildly better accuracy probably closer to a 60 win rate but instead of having 50 trades a month or 20 trades a month here with the conservative entry the most conservative entry may only give you eight to ten trades a month or maybe only five to ten trades a month"

"for the candlestick pattern or green candle in a buying situation the good thing about waiting for this more conservative entry is that the swing low is then formed when you have a limit order you might hit this with a red candle and not form a swing low therefore your stop loss needs to be below the previous swing low but when you wait for a green candle the swing low's already formed so then you can put a stop loss below that swing low and it gives you a better reward to risk opportunity"

"for the third most conservative entry whenever i drop down to a smaller time frame and find something like this triple bottom or a double bottom but in this case it ends up being a triple bottom then i just put a stop loss below that lowest low of the double or triple bottom"

"if we were talking about this strategy the break and re-test strategy they could have a strategy that's 50 percent accurate and gives them a 1.5 to 1 reward to risk ratio as long as that consistently plays out then they have a strategy that makes money over time"

"you need to be risking less on trades probably you may be someone who's already mastered risk management but the likely scenario is that you haven't and you're still consistently risking too much every time you place a trade"

"pick an entry that you think fits your trading style best whether that be the aggressive the conservative or the most conservative entries we talked about earlier most aggressive that's the wrong letter most conservative"

"then go through market data historic data look for each time these patterns happened with that specific entry that you pick and with whatever stops and targets you choose to use and see how it performed in historic data out of the last 100 times it happened on a currency pair and on a specific time frame if that provided an edge over the market let's say yet again a 50 win rate with a 1.5 to 1 reward to risk ratio then you know you have a strategy that proven to make money over time"