Break and Retest

Description

Break and Retest strategy focuses on capitalising on potential trend continuations by identifying retests of broken support and resistance levels. Here’s a breakdown of how it works:

Core Concept:

1. Breakout: We wait for the price to decisively break through a well-defined support or resistance level.
2. Retest: We anticipate the price to return (retest) that level, potentially indicating a continuation of the breakout direction.
3. Confirmation: We look for signs of buying or selling pressure at the retest zone using wick rejections. These wicks suggest traders are actively defending the level.
4. Entry: After a successful wick rejection, we wait for a confirmation candle (often a close above/below the previous high/low) to solidify the move before entering a buy or sell trade.

Key Features:

• Focuses on price action: Avoids lagging indicators and repainting issues.
• Identifies visual support and resistance: Provides clear levels for breakout and retest zones.
• Generates buy and sell signals: Offers trade entry guidance based on confirmation at the retest.
• Alerts and notifications: Delivers trade signals directly to your MT4 platform and phone for mobile convenience.
• Multi-market compatibility: Works on Forex, metals, indices, and cryptocurrencies.
• Timeframe flexibility: Adapts to different trading styles by functioning on any timeframe.

Customisable Settings:

• Breakout Lookback: Define how many past candles the indicator considers for identifying breakouts (default:250).
• Minimum Retest Candles: Set the minimum number of candles between the breakout and retest for a clearer confirmation (default: 8).
• Confirmation Filter: Enable confirmation based on closing price above/below previous highs/lows for additional validation (default: True).
• Fractal Entry: Choose late entry signals based on swing highs/lows identified by fractals (default: False).
• Alerts and Push Notifications: Manage in-platform and mobile notifications for new signals (default: True).
• Zone Colors: Customize the visual appearance of support and resistance zones (default: blue/red).
• Support/Resistance Lookback: Define how far back the indicator searches for historical support and resistance zones (default: 250).
• Zone Sensitivity: Adjust the thickness of the support and resistance zones (default: 0.10).

Ensuring Functionality:

Look for the following status message at the top left of your MT4 chart:

• Health: Working Ok…
• Status: Scanning for a Break & Retest entry…

By understanding these concepts and tailoring the settings to your preferences, you can leverage the Break and Retest strategy to identify potential trend continuations and make informed trading decisions.