Forex & Stocks BREAKOUT & RETEST Trading System and Strategy

BREAKOUT & RETEST Trading System and Strategy (How To Trade The Trendline-Shift For High Probability Trade. In this tutorial, I’ll show you, how to trade BREAKOUT & RETEST in the Forex, Stocks, and Crypto market.

Trendlines are well respected and adding the concept of the “trendline-break” can help filter out low probability market reversals and also time re-entry trades.

• Download “ForexWQT-BreakoutRetestSystem” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWQT-BreakoutRetestSystem.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWQT-BreakoutRetestSystem” trading system and strategy.
• You will see the “BREAKOUT & RETEST Trading System” is available on your Chart.

 

It’s usually always possible to draw multiple trendlines and especially newer traders often tend to use too many trendlines.

We suggest only using 1 – 2 trendlines per market move and to focus on the most important ones. The goal of trendlines is it to add context to your chart analysis and not to confuse you.

• ‘BREAKOUT & RETEST’ Confirmation Signal

This screenshot shows a chart with perfect scenario, an uptrend where we connected the lows. Price then broke the trendline, retested it afterwards and collapse.

This example shows us, how we can draw trendlines and use the ‘BREAKOUT & RETEST’ of the trendlines to time entries. Sometimes, we can use the trendlines to find later re-entry points after a reversal and counter the effect of missing trades.

• Take profit target
  Ideally, you always want to hit a 3:1 Risk to reward ratio, or close to it.

Stop Loss Strategy

• Set the stop loss above both 20-period and 8-period EMA.

 

Getting used to drawing trendlines takes a bit of time, but once you have drawn a few, your eye will get used to seeing trendlines quickly. So, Don’t worry about violations about the trendline – the trendlines don’t have to be 100% accurate and as long as price respects them reasonably well, you are doing it right.