so many people every single day
try to get into trades too early before
they have the actual confirmation to try
to get the absolute best price that they
possibly can
and it's the one thing messing you up
more than anything else
you are not waiting for a break and a
re-test
so in this video i'm going to show you
exactly how to use a break and re-test
strategy on every single trade whether
you're trading market structure
or moving averages
welcome back to the channel everybody my
name is ardy and this
is the moving average a show where we
discuss everything day trading to keep
you
profitable on a consistent basis so how
many times have you actually been
watching a price action and thinking
okay this is my entry point i know it's
gonna break this
and it's just gonna go up to the moon
you get in on your trade
and then it starts reversing then it
goes so far negative that you're forced
to close a trade so you don't get margin
called and you take the loss and you're
like god i should have just waited
the amount of times that i've said god i
should have just waited
would blow your mind so what i want you
to do is focus on
patience i know you're staring at the
charts i know you're waiting for your
entry
but what you need to do is be extra
patient and actually wait
for a good entry a break and re-test
of any market structure or moving
average is a great entry point so let's
jump into the charts i'm going to show
you an example on
aud usd so taking this out to a one hour
chart i'm gonna put up some levels of
support and resistance here we've got a
level here
we've got a level here and we've got a
level here you can clearly see that we
were having
some resistance here some resistance
here
support being formed here and support
being formed here
if you are trading this on the one hour
and you see it stuck in this range
rejecting and then coming back down
once we've broken through that you're
like cool
most people get in on a trade the second
that it breaks
and that is a huge mistake now i've got
this zoomed in
the most common mistake is right here a
lot of people see this level being
formed
with the bodies of these candles they're
being too
literal with their levels of support and
resistance
you just kind of want a general area of
it it doesn't have to be an exact
number so what happened here is this
long wick came down people see this
downtrend
and then at one point this candle was
all red facing down so people got in
and then got stopped out right here they
didn't wait for a break and a re-test
they just waited for it to break this
candle and then got in on a short and
got stopped out right here
then we clearly got a break a small
retest
another retest and then a continuation
down this
is what you should have waited for to be
comfortable
to get in on your trade clear movement
below that price and a re-test
you can see we broke we retested came
down
tried to retest but couldn't get to that
level and then continued down
that's a comfortable entry for a trade
and this works on any time frame
imagine looking at a one minute chart
and you can clearly see we have a level
here
it's not as significant as on the one
hour chart but it's still
something we came down we came up to
retest
and then continued down but on a one
minute it's better to use moving
averages so
imagine if we put up the 21 to 50 and
the 200
then you can clearly see the trend of
the price
we are trading above the moving averages
it's trending up we are trading below
the moving averages we are trending down
now this is a break and a retest of the
moving averages
which is the strategy that i like to do
every single day so we've clearly broken
through these moving averages
starting to consolidate a little bit and
now we're trading below them
it's consolidating just a little bit and
then it
tests this finds a resistance
and then continues down it comes back up
again
and tests it as resistance and keeps
moving down these are the breaks and the
retests
when these retests happen and you're
clearly seeing a downtrending market
you can use that as your entry point for
your position
it's super super simple just be patient
wait for the break and the retest
whether you're trading market structure
which you can learn in this video or
you're trading moving averages
which you can learn in this video always
wait for the break
and the retest so if you guys are still
watching this video that means that you
like the video
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we will see you in the next one