TL breakout + retest


Here's is not something new, is for trades that breaks the trendline (TL) and retest the trendline and only we took the trades. Also chart patterns.

Welcome anyone trades on any TF, any pairs. Me basically scanning thru those USD pairs and from Higher TF until Smaller TF.

Why dont takes the trades once the TL is broken?

I often ask this to myself. As I view back my journal, I have many failure when I'm impatient and enter the trades once the TL is broken. Either TL is wrongly drawn, or is a bull/bear trap and others.

How about it doesn't retest the TL?

I juz let it go, no point I trying to chase every trades, let the trades come to me. Juz take as I miss out that chance. Only takes those HIGH QUALiTY trades. If you feel uncertainty, juz let it go. No point risking your hard earn money for some uncertainty.

Enter trades at closed of candles or middle of candles?

I usually enter trades at the end of candles. For me, sounds safer in that way.

Edit 1 @ 5april09 :

Instead of showing breakout and retest, now only provide charts with TL. Trade wisely . Use it as a reference

Edit 2 @ 21april09 :

Put more attention on divergence. Check divergence using MACD and STOCH.

Edit 3 @ 19august09 :

Using bar chart to drew TL instead of candlestick.

New Short Form :

+ve --> positive divergence

-ve --> negative divergence

tp --> usually I drew a horizontal line and wrote TP, shows TP for the -ve/+ve divergence

To understand further about divergence. Plz do not hesitate to head over "school" section in babypips


First Illustration in H4 GBPUSD. As others spoken before, price action in Higher TF is more reliable compared to Lower TF. So adjust your lot size accordingly.

When I trading on Higher TF, I trade multiple LOT, so that I could scale out my position slowly one by one.

WHen I trading in Lower TF, I set tight SL and TP, coz I don't really comform trades m15 TF. Besides, I also trades with smaller LOT size.

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A trade on SMaller TF. Juz closed not long ago.

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An example of didn't wait for candle closed.

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Good thread, keep on........

First Illustration in H4 GBPUSD. As others spoken before, price action in Higher TF is more reliable compared to Lower TF. So adjust your lot size accordingly........

I also Found out that is a BEAR FLAG

Trading Stocks Chart Patterns: Bear Flag


UJ H4 potential TRADE :

Which scenario is more important? I have arrange it according to number.

How I decide which one more important? Look which one is more easier visible to traders.

Besides, I only trade breakout + retest trades only. That means we are waiting the perfect setup in scenario 1. IF the TL didn't retest and price directly go south, we assume we miss the boat and wait for others. IF the TL broken, then we assume scenario 1 failed. SO we wait for further chances.



Either break the diagonal TL, or break the POtential DOUBLE TOP.


hey bro..great stuff..loving the charts


I really like this approach.


Plz note that, this approach not trade on BREAKOUT.


Bcoz we oftenly dunno whether the TL is a correct one or not. So, if it get broken, and retest-ed. So now we are sure the TL is drawn correctly, and here we go for trade.

And thanks for the support.