A Simple Break & Retest Price Action Strategy - Powerful & Effective

what's going on everybody welcome back to my youtube channel so it's the end of the week and i decided to do another little lesson on understanding market structure and creating a strategy with you that we can use in the live market now it's a very simple approach and all we're simply going to be doing is trading with the structure of the market we're going to be identifying patterns and we're going to be identifying potential trading opportunities in line with the direction of the market it's that simple we're going to be looking for pin bars engulfing candles at key levels double tops double bottom patterns higher low lower high formation patterns and we're just going to take the trades usually we do 10 trades we check the results at the end and the whole point in this is just to show the importance with trading with the trend using good risk reward ratio and just being very systematic and disciplined with our approach in taking trades at key levels or in line with the direction of the market i think i've said that about 10 times now but anyway let's get to the charts let's roll the intro and let's get this party started so over to the charts we're gonna go over pound usd i mean i just love this pair so much i'm not sure which time frame to pick now in the back of my mind i was thinking of using the hourly timeframe but we use that a lot i think we might scale down today and use the five minute time frame um oh yeah here on the screen we have to bring back the data from the replay mode let's head over to the 4h time frame so that we pick a random date and i'm not sure how far this is going to track back but it doesn't matter so what we'll do is we'll bring up the replay and then we'll just do this looking away looking away looking away looking away looking away boom there you go so a random day you know it's a random date now let me break down what we're looking for for this strategy we're going to be trading with the market when the market's pushing up making higher highs and higher lows as part of an uptrend when the market is pushing down we're going to be taking sales as lower lows double tops as part of the downtrend any sideways moving markets we're just going to avoid totally we're not taking any trades our risk to reward ratio for this session is going to be one to two rich award ratio and the rules are we take ten trades and we go break even at one to one and then yeah that's it really and uh what else could we say is part of this well yes actually and the patterns we're going to be looking for are going to be strong engulfing candles to the downside and to the upside and we're going to be looking for candles with wick rejections to the downside and to the upside and then we're going to be looking for indecision candles and we're also going to be looking for multiple wick rejections at key levels so this is a strategy nice and simple not too difficult and this is what we're going to roll with for this session so we've gone to a random date let's hope we can get to the five minutes yes we can that's absolutely fantastic and let's just take a look at the structure of this market now as i said the whole reason for doing this is not because it's random we're just going to trade in line with the direction of the market we're going to be identifying the structure of the market and we're also going to be identifying potential trader opportunities based on how the market moves and the behavior so the first thing that i'm going to look at here is the structure of the market is clearly down this is a key level if price comes back to i'm going to take a trade from and then my second plan on this is if price breaks the structural low i'd just be looking for a retest at this level so a simple plan and that's what we're going to be waiting for now it looks like price has finally broken the structure beautifully broken the structure now i'm just looking for price to pull back to create some sort of exhaustion give me that wick rejection that i'm looking for okay very good so we're just holding now it has come back for a re-test in and around this level so we can still look for cells but now we want to see a strong bearish candle to the downside oh now that is a strong bearish candle and that is a very impulsive move there now i'm not too worried about the wicks here because i know the overall trend is down i know price is reacting at a key level and i can see the wick rejection from the high this is potentially a risky trade but i feel confident in taking it and i'm just gonna place my stop-loss above the key level the reason for that is because the price action that broke out of this structure has broken back in and closed below it meaning this is a strong level and what i want to do is just go for my target of one to two with the momentum that has been illustrated here on this five minute time frame is strong bearish we do have a level we may bounce off of and yes we may not break it but i'm feeling good about it and that's one thing that you should be doing as well when you have a good feeling you've got your intuition your instinct and you just feed it take the trade win or lose just take the trade it's part of the numbers so let's see what happens so i mean look this is the issue right here we can't control it now we're in the trade but we are rejecting this area which is a shame but it is what it is and welcome to trade and market structure and market behavior guys i mean it's just absolutely gorgeous that's an easy break even trade right there so let's run with this one and uh let's see what happens with the finale oh oh oh beautiful just so gorgeous so gorgeous so gorgeous all i can say uh just gorgeous plus two are on that one so let's continue the overall direction bias this market is still down we're in a strong push phase which means i cannot sell the market i'm looking for the market to pull back to a key level which obviously will be in and around here now the market pulls back to this key level because price is so far from this key level on the way back up it could start to make higher highs and higher lows which means i'm not going to sell the market if it comes back to this level directly what i'd prefer the market to do is in actual fact just pull back to around two thirds or fifty percent of this push phase which is this high and this low and look for a retest continuation in and around these levels here we will see what happens and we'll continue to play it out but again i'm in a rush i'm now at plus 2r and uh yeah i mean 3r would have been easy on that but we're going for two r that's the rules so let's see what happens so price is starting to pull back this is a nice pullback again i'm not going to just take any random lower high trades it does look really nice to be honest with you there's good signs it could continue down but it's not at a key level so that means no trade waiting for price to pull back into a key level now this is strong bullish pressure back into that key level now if price reacts to this key level and then gives us a significant or gives us significant evidence of price rejecting this level okay so we've broken now we've broken this now let me finish what i'm saying if we've got the significant evidence of price rejecting this level then i would have taken a trade but because we've broken above it now it doesn't mean i'm bullish it just means that price is coming back to a key level now as i did mention as price is coming back we have these higher highs higher lows back into this key level now it is more bullish than it is bearish in a sell by structure but i just want to highlight something here because i get this question a lot where should i place my level at the wicks of the bodies well look there's a wick here and there's a reaction and if you just see here look where this reaction is coming from okay now i'm not taking this trade it's not enough evidence i want to see more confirmation this is a good sign this is a very good sign because not only do we have one evidence of birth sentiment we also have a previous candle based on behavior trying to push up and failing now that being said i want to take the trade there is just one thing that i have to be careful of i have my stop-loss above the key level this is where i'm going to find problems do i have a one-to-one risk toward ratio yes i do for that reason i can go break even if price starts to bounce off of this break and re-test level here in the market so for that reason i will take the trade my target is now just one to two so this is our second trade and let's see what happens with this one beautiful momentum to the downside it's not a lot of volume here just looks like a pullback at the moment but we'll have to see yep it just told you the volume in that push phase was just so minimal it just was not giving us that trade we have not been stopped out of this trade but the next candle probably will yeah it's a shame i mean i saw it i just knew it and as i said this is coming into the structure bullish meaning that it's bullish we did get the two signs i think we lacked one confluence there to take this trade and that was a continuation momentum probably a lower high or just a re-test of a new level that was created but you know this is trading it's a numbers game and uh yeah this one we lose one r now even though this is testing this it's not nice losing but it just is what it is now that prices started to create this higher high high low formation we're breaking above this key level in the market i know that this is more bullish than it is bearish right now so i'm only going to be looking for buyers with this evidence i'm taking my key level i'm identifying where price was failing to break above waiting for the break i'm looking for the retest we probably could have gotten a trade here but we was in a cell and we had to wait for that cell to uh close out so let's just wait for price to leave come back and see what happens i'm actually not sure why uh we've oh yes because we went break even on this but this was actually a win so that's fine so if price comes back into this key level um i will be looking for buys now the reason why i hesitated here look at the volume in these candles i mean what's going on definitely the time of that we're looking to trade here actually i just realized that um we are what are we doing are we going to be worried about time here we're just going to trade i think we're just going to trade um based on structural market behavior regardless of the time even though i know it's not the best time to trade and um with the evidence that i have here of price pushing into this level really really little momentum to the downside we know the overall bias is bullish this is a key level in the market there's two confluences here if we take a trade we take a trade with our stop-loss below the key level and then we look for our one-to-one target to this high which we don't have but we can stretch i mean let's bring this down to where it's supposed to be and yeah i think we get our one-to-one back to this level for that reason i am going to take this trade as a one to two risk ward ratio trade confluences here that i'm taking this trade as part of is an uptrend i know what i'm going to say if i lose this and i know what i'm going to say if i win this okay it's numbers it's just numbers that's what i'm doing here it's numbers i'm not getting too nitty gritty into details so let's take the trade so we do have a break-even trade here which is absolutely gorgeous so let's see if we can uh finish us off with a bang and to be honest with you it's quite depressing to see that price has not broken above this level yet i mean it is more bullish and it's bearish and now we're going through the asian session so we just need to pop to the upside and there you go bob is your uncle in this one thank you very much thank you very much so now we are plus two r on this trade all right guys now the lacking momentum here and volume in these candles is not making me feel confident about any key levels it's not making me feel confident about any structure i am going to remain patient until otherwise and uh continue to look for these trades so far we're two and one but we do have seven more to go so there's a lot that could happen so now what i'm going to be doing is just waiting for true structure to form meaning i just want to see price create a trend up or down we're now in a consolidation so price is just moving sideways so a break below or above will give a good sign at least a starting time to look for a trade so now we have this break below so we have an area in the market where price was failing to break below for a very long period of time we've broke below this level now and what i want to see is just price to leave this for a little while i would love a retest at this level but i'm not going to rush into it i am simply just going to wait for price to create true structure that represents a nice retest in the market and to be honest with you oh this looks so beautiful aesthetically pleasing you know the actual the structure of the market is pushing down we have a break of the structure we don't have an exact re-test of the level but being this far away from the retest level is a strong sign that you could look for this cell we have a strong momentum candle to the downside my expectations is the next candle to be bearish if i take the trade and i put my stop-loss above this key level then even if we have a slight pullback we should kind of in theory based on how the market moves respect this level and continue down i'm not worried about any structure to the left now it's a new day it's a new start just looking at what's what's happening on the charts we have the brick wall there as long as price stays below it we can sell it all day long so for that reason i'm going to take the trade now please don't say to me rox why didn't you take the trade at a key level as i just said price you might as well just call price being at that level okay if you want to get nitty gritty we'll just put it down to the wicks there you go it tap the wicks let's find some data to the left where you know it matches up and let's just make sense of it okay whatever so i'm taking this trade and let's see what happens now i did just say if price comes back in we have insurance that our stop-loss is above this level and this level should be a reaction level where price attempts to break and fails this is a good sign but it doesn't mean it's going down but let's just see what happens there's that brick wall stepping in and unfortunately we got stopped out is what it is again you can hear the tone in my voice changing because i'm so passionate about this i just don't like to see this happen but it's trading right good okay let's continue now um i want to remove this because this broke wall doesn't line up for me anymore price is coming back to the consolidation area um it doesn't necessarily mean that it's going to be bullish i'll see how it reacts to this level and uh what i have my plans are actually now is to see price just create lower highs double tops on the way down if not we'll just ride this consolidation out until i've all okay if i'm done forget about it so now i'm bullish reason being break out of consolidation potential retest low high formation price failed we broke above this consolidation indicating bullish pressure we're now continuing that bullish pressure to the upside for that reason i'm just looking for a retest continuation buy and that would be it nice reaction a break back in we just we just cancel all plans and we just continue to wait patiently now the fact that price is still sitting around this consolidation area i'm just going to wait patiently again for another breakout either to the upside or the downside and then go from there so at the moment we're continuing to consolidate move sideways let's remove this now because it's just driving sitting there and let's see what happens a nice break below structure here so evidence of price failing to break the highs we have a break below previous structural lows indicating bearish sentiment we also have a trend to the upside where price has now broken that structure and we're now starting to form a structural high lower high formation and a potential trend to the downside for that reason we're building up a plan now to look for cells and if given the evidence of a re-test we'll look for a potential trading opportunity now this is too bullish this is too bullish but this is really nice okay good i like the behavior we're going to take the trade here i am trusting my analysis the key level is not going to be the safest place to put the stop-loss we have to put it above the level reason being is because price is broken in broken out which is an indecision but the major higher of that behavior is here so this is what we're gonna have to work with we're going for a one to two risk ward ratio trade i do not like to see this range as big as it is but i have to trust the process it is what it is and we'll just roll this one out and see what happens let's hit the next bar um send back okay so we haven't quite got a break even yet let's just continue to roll this and dog it happens okay it just happens is what it is let's continue moving on so at this moment in time we are now down another one our overall way we are still plus one r on this session so just playing the numbers we're at one two three four five trades so we'll just continue to uh trust the process and work with the numbers price breaking above this structure and this lower height continuing to break above major higher levels in the market we are reacting so i'm not going to be jumping into buyers just yet i know it's more bullish and it's bearish so i'll just wait for the break above the structure if given the evidence and then i'll look for a trading opportunity and this in actual fact was so beautiful for a double top but my waffle mouth just kept talking and talking whilst pressing buttons and i did not take it very very disappointed with myself okay we'll continue you can't miss a trade remember you just didn't take the trade and that's as simple as it is so price is just continuing to rally down now um we have a very nice break below this level which is a key level in the market we want to see price leave just for a minute and then come back when it's ready um we're breaking back into structure breaking back our outer structure breaking back into structure and now we have a momentum shift now based on how the market is moving here i do like this as a cell but i am very concerned about the wicks here if i take the trade i need my stop-loss above structure it's just not going to work in terms of good risk management um it is what it is if it goes down but we have to just be strict with how we plan to take this trade now with this evidence i am going to take this trade i see a formation here and a pattern that i really like which is a behavioral pattern that i describe as an indecision so a breakout break back in after that break back into structure you now have this level with this level being lower and now i'm just looking for a continuation that's as simple as it is i know the overall bias this this trend right now is down so i have another confluence i'm going to take this trade and i'm just simply going to place my stop-loss above this level here this is the major wick area this is our insurance where we should see price um respect and in terms of those wick rejections that i was previously worried about i'm not worried about anymore because if you look what the market has done i know this is very subtle and some of you might be like but it hasn't really broken it but in my opinion there is a lot of bearish sentiment in the markets right now and that's why i'm going to take this trade so we've taken the trade we're in the trade now we are pulling back and unfortunately we got stopped out just is what it is there's nothing i can do about that so we take another l in this one and we are now down another r so we'll just continue to see what the market is doing we've come back into a key level in the market where now we potentially could see a lower high slash double top or even worse not even worse but in terms of how the structure is moving here with this low we could just be entering the range so let's see what happens with the structure and then let's just go from there a nice break close above is really good now i really like this as a retest retest it's more of an aggressive retest and i'm just going to go with the momentum reason being is the behavior of the market was down we create a low high formation we failed to break that low high formation we have strong momentum we have a nice break re-test momentum and i'm looking for price to get back to this key level as a target reason being price lights to come back to key levels where it previously has reacted violently from in the past so for that reason i'm going to take this trade and i'm going to target my one to two which is exactly at this key level let's see what happens wish me luck we've lost three in a row and uh it doesn't feel good but again we have four more trades to take so let's see how this one plays out okay so on this one we hit take profit and pretty good on this one now as i said price likes to come back to these key levels and yes we did come back to this key level i think it's debatable whether we've got break even here or not some of us would have remember the spreads are above we may have not got breaking uh break even and some of you may have it really depends on how this fluctuated i personally am going to take this as a trade and a winning trade because why i think i deserve it and i think the analysis and the breakdown was pretty good so we're not going to do minus we're going to do plus now notice what we're doing here we're just staying systematic we're just following what the market is doing we're staying disciplined we're continuing the same theme the same approach and we're just doing what we know we should be doing and that's what's important this is very bullish we've come into a major key level this would have been a good sign of a triple top but we're starting to break it now so if we break above this level i'm going to be looking for a re-test of the structure and just a continuation and there we go we don't have that re-test and that continuation which is an absolute shame i really did want that trade if i had a pattern like this where we had an indecision and then a bullish candle so in and around here i would have taken this by but it is what it is it didn't so now we're just waiting for the perfect retest of the structure go for price come back to this level show signs of rejections one more sign you know i like it the market is pushing up we have a really nice brick wall here we have a retest level here so we have two confluences then we have the trend up third confluence then we have a higher low if we take this trade the only problem we're going to run into now is if we have a one-to-one risk toward ratio back to these highs which we kind of do so i mean we're pushing it fine here but i'm going to take the trade because i like the setup and i like how the market is moving so let's take the trade one to two reward ratio let's hope we hit the bag on this one and it doesn't look like we will no so we did come back to that key level and this is a this happens a lot and uh i mean a good lesson and a reminder for me also i think we are still in this trade so we'll run it but i took the trade just above the key level and uh i mean it's not wrong because our stop-loss is below the key level where we would have placed it anyway sometimes you can just wait for price to come back to the key level and see what happens but we survive let's see if we get to the top um that most definitely is a breakeven trade i don't know if that's a break even trade again guys some of you will call me out on it some of you wouldn't um it really depends what the spreads were like and how the market moved um i'm not sure what to do here i don't want to be clocked i don't want people to call me a fraud um thing is if we accept a breakeven trade here why didn't we accept a breakeven trade here this is the thing all right do you know what i'm gonna do i'm not gonna get called out on this so for that reason this is what we'll do here we're going to go break even and we're going to go break even there you go breakeven breakeven trade okay compared to our first break even trade over here you know we didn't come back fine whatever let's keep moving on let's see what the market does so we're break even break even where one two three four five six seven eight two more trades to go let's see what happens oh man all right let's continue so the bias was good we just we got a breakeven trade here and it just is what it is you know wow wow i mean that is so debatable i'm going to be honest with you that is so debatable that could have been two in the bag for us but what would i could have shoulda all right let's keep rolling so it's quite bullish now and it's just going to continue bullish isn't it i mean that could have just been a beautiful one to free right there and now i'm slightly on tilt um but i have to just compose myself because i know we can't trade like this now i have um another approach to the markets and i mean i don't want to digress but with the extension of this trend to the upside price failing to make a higher high in this bearish candle i would love to take a sell based on the behavior but we won't but we'll see what the market does okay and now if you can hear the uh the truck outside i do apologize we'll keep rolling now that we have a key level in the market where price created the high respected the high if we come back to this again i will take this as a triple top and i will be looking for my selling opportunities if given the evidence now we're breaking above that level i don't call it a break above just yet uh yeah you have to now once you have this break in this retest with this bullish sentiment it's a strong sign of continuations to the upside again just following the trend we did potentially have um a break and retest level here that we could have taken advantage of but i was too worried about the double top so we'll just let the market play out and see what happens and i'm just looking for clean structure now which is not what i've got so this level is being respected as a retest level in the market so i mean if i get a strong candle to the upside i'll take the trade and if we get a break below then you know i'll just wait for cleaner structure right now i feel like this is getting messy and for that reason you know we'll just wait it's moving sideways now so let's just hold tight okay that is beautiful this is what i want to work with okay so we have a double top formation here in the market we have a break of a trend line indicating a potential reversal and now we have a nice strong brake closed blurry structure for that reason i'm just looking for a continuation down re-test and then a selling opportunity and that i wish i took but we will wait for a true re-test uh yeah goodbye gu so look i am seeing this area here as a break and re-test as well so i reckon if i get one more candle to the downside not to the upside okay for that reason i mean yeah again i can still wait for one more bearish candle or strong bearish candle or there's a strong behavior happening here along with structure along with how price is reacting to the key level that was previously created um i am feeling this trade because the confluences that i have is a breakthrough of trendline failed to make a new higher high low high formation double top of that low high formation yeah i think we're going to take this trade and we are going to see what happens so stop loss above the level and then we're going for a one to two target we don't have a one to one target here can't take this trade we can't get to break even in time and that's a problem okay that is a problem risk before before reward now we've hit a consolidation we are just going to wait for price to break out and then look for a trade okay sideways sideways sideways sideways sideways sideways sideways and then what do we have here regardless if this is a breakout i still need price to leave the structure and then eventually come back okay consolidating continuing to consolidate continuing to consolidate and yeah this is where this one's going hmm what's the time okay four o'clock in the morning that's fine momentum here we go so now we have some momentum we have price creating higher highs higher lows we have areas in the market where price is breaking above structure now if we get a re-test of this level then i'll be looking for a trade if price doesn't continue to fly to the upside but let's see a nice re-test at this level and yeah i think i'm going to take this trade so as i said i just will account for the wicks and i'll also account for how price is in and around this level now we just did take a trade like this previously where you know we did say let's wait for price to get back to that key level but you know the whole theory behind this is is if we can get our stop-loss below the key level you're not in theory trying to cheat the market but again i see a problem with this trade look we don't have a one-to-one so forget about that theory if price comes back to that key level then it's not okay let's continue with the analysis so we're stalling at a retest level in the market let's see what happens if this is not a strong sign for buyers it's just yeah there you go i told you it's just it doesn't look good it doesn't feel good so let's just uh wait and see what happens now we're breaking these lows i want to see price start to continue to push down and just give me some new evidence this right now this right now i want to sell with my whole heart body soul and mind i want to sell this it just feels good but we can't the pattern is not really there the structure is not really working in our favor and also at the same time we don't have a break even so okay now if we get a re-test at this level what did i say what did i say i said i want to sell this i want to sell it but we just didn't have a break even there okay we break below the structure let's look for that retest and no okay so we're back out of this again and we are just waiting patiently for new evidence at the moment um i'm seeing a pattern form which is i'll forget about it okay oh it's doing bits right now it's doing bits okay so this does not stand we're just waiting now for our last two trades so let's see how the market continues to roll so that's a really strong sign there um from this reaction area earth reaction this wick area um yeah it's a shame we was waffling and we missed that one right we're just waiting for clean structure nice break of the structure let's see if we get a retest and a continuation to the downside now this is a pattern i like to trade um which is an indecision candle followed by bearish momentum in line with the trend and then looking for that continuation down i'm going to take this because we have two more trays to take and uh i feel like we're not getting these perfect re-test which doesn't exist in every single structure but what i will do is i'll take this a bit conservatively as a sell stop so i'll only get triggered if the market goes down on its next candle and uh if it doesn't then i avoid being triggered into this trade or should hope that i get a void uh hope that i avoid getting triggered in so we're definitely triggered in now and uh there you go we've got a breakeven trade so that's what's good and let's just see if we win it you know to be honest with you i mean look if we was in the live markets that trade would have been closed but we're not in the live market so we cannot close that so now we're another break even i mean where are we at now in terms of our results we are two for we're we're just at break even okay cool is what it is let's continue the session and uh take our final trade one two three four five six seven eight nine yep let's take our final trade so again we have another pattern here that i really like um i'm really disappointed with that but again i don't control the markets the markets you know do what it wants to do here we have a pattern we don't have a break-even range so again i can't take this trade but i do like this for sales there you go what did i say i really like this for sales and we continue down um we've called out more winning trades than we've taken but again if it doesn't fall in line with your trading plan then just don't break it okay just don't break your trading plan let's um wait for a new structure to form and then look for another trading opportunity so strong bullish pressure to the upside breaking previous structural highs so this is indicating a potential reversal um i want to see a re-test of this structure nice wick rejections bullish candles and then i'm going in for a big trade okay now if we respect this lowest double bottom yep like this i'm going to take this trade just as a final one counter trend trading and uh whatever the weather is what the weather is the reason why i like this and i'll just explain it before i take it is we have a downtrend any cells below this brick wall would have been good we have a break violation of this structure if this was the lower height then in theory what i want to see is the lower low be formed and because we haven't got the lower low formed we're reacting with bullish sentiment i'll take this as a buy now boy we'll see what happens here i'm gonna go for a big one i'm gonna target a one to three just to put us in a nice position and fingers crossed on this one i mean this would be a finale if we hit the bag wish me luck not looking good not looking good nice bounce let's continue that was good baby that is what's good see me grinning that's what's good what a session what a session what a session and i'm just telling you do this once a week with whatever strategy you're using i'm telling you it reinforces some good stuff in your trading so here we have three five seven r minus 4r and for this session after 10 trades we finished plus 3r in profit debatable for two of the trades that we had take profit on as being break even but you know trying to be transparent here and that was a great session so guys i hope you enjoyed that i mean look it was just a back testing session but you saw the emotions you saw how certain things triggered me but you have to remain composed continue to follow your plan do not deviate stay disciplined stay patient and just take the trades in line with your trading plan it was an absolutely phenomenal back testing session i hope you enjoyed it i hope you have a great weekend a great day and a great week and just if you enjoyed this video smash that like button subscribe if you haven't turn on notifications and until next time trust the process you

Channel: RockzFX Academy

Views: 163,463

Keywords: forex, forex trading, forex strategies, best trading strategies, how to trade forex, the trading channel, live trades, support/resistance trading, price action trading, candlestick charts, best forex strategy, forex patterns, forex patterns cheat sheet, rockzfx entry, rockzfx strategy, rockzfx support and resistance, best forex strategy for consistent profits, best forex strategy 2020

Id: 7sAClgzye1s

Length: 36min 27sec (2187 seconds)

Published: Fri Oct 09 2020