Break & Re-Test Patterns
Recent market volatility on the daily charts has paved the way for textbook price action on the lower timeframes.
Here we have the 1H chart of GBPUSD.
Identifying the basic BREAK and RE-TEST pattern is one of the many many layers of confluence we can apply over our setups to provide a profitable edge in the market.
Here’s how you can get started with identifying break and re-test patterns:
1. Identify an existing trend, or the start of a trend.
2. Identify either key support/resistance levels (horizontal lines) AND/OR recent swing high/swing low levels.
3. Wait for a break.
4. Wait for a re-test.
This simple technical analysis has POWERFUL results and it requires no fancy indicators or formulas. Pull up charts, and practice, practice, practice. You’ll see the results for yourself.