Crypto Academy Season 03 - Week 03 | Advanced Course - Break Retest Break (BRB) Strategy to Trade Continuation

in SteemitCryptoAcademy2 months ago (edited)

Steemit Crypto Academy season 03 is going superb and we are happy to see the participation level shown by students in all three levels from Beginner to Advanced Level. It will provide an excellent opportunity to new steemians who want to start their journey in Crypto world and advanced steemians who want to take their crypto journey to another level. If you are taking part for the first time in this season, you must check the previous 2 weeks lectures to get some great knowledge.

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Last week, I have explained MSB strategy that is effective to trade the trend reversal and I am very happy to see that most of the students picked the strategy. This week I am going to share another price action strategy that is called Break Retest Break Strategy (BRB) which will help you to trade trend continuation especially at crucial support or resistance levels. I will explain different aspects of the Break Retest Break Strategy and students will be able to understand the following from this lecture;

  • Understanding the Trend Continuation
  • The concept of Break Retest Break Strategy
  • Trade Entry Criteria for BRB Strategy
  • Trade Exit Criteria for BRB Strategy
  • Example of Break Retest Break Trades on Crypto Assets

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Understanding the Trend Continuation

You all might have heard that trend is your friend in the trading market and you must want to understand how to trade trend continuation. In a trend, the price will make an impulsive move and then pull back. The next wave will make another impulsive move in the trend direction and then another pull back. This pattern will keep on going in a trend until we get market structure break.

Have a look at this bitcoin chart on 1hr time frame to understand trend continuation. Priced made impulsive downward moves and then pull back and the trend kept going on.

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The concept of Break Retest Break Strategy

Most of you know the concept of Support and Resistance as these were covered in the previous seasons of Crypto academy. These are basically the levels from where the price has rebounded and reversed. Generally, traders think these points are unbreakable and we should just sell at the resistance and buy at the support. This is not true in all cases because these points get broken in strong trends and price continues its movement.

This is where Break Retest Break (BRB) strategy will come in play and we will get in the trade on break of these points. These support and resistance points do not have to be at extreme highs or lows but they cal also be present in middle of market structure. I will explain the concept of Break Retest Break with illustration because it is very important to understand to determine your entry and exit levels that we will discuss later in the lecture.

BRB at Resistance Level
Price breaks through the resistance level creating a swing high point. It will then restest the resistance level and then again breaks the previous swing point. This is why I call it Break-Retest-Break Strategy and this price action pattern keeps happening again and again.

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BRB at Support Level
Price breaks through the support level creating a swing low point. It will then restest the support level and then again breaks the previous swing point. This is why I call it Break-Retest-Break Strategy and this price action pattern keeps happening again and again.

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Trade Entry Criteria for BRB Strategy

I will be explaining the trade entry criteria for both Buy positions and Sell positions. It is important to note that you can only place Buy trades in spot trading available on crypto exchanges. You can also sell crypto assets on margin trading or other platforms like Metatrader4.

Entry Criteria for Buy Position

1- Market should be approaching a resistance level and you should mark that level.

2 - Wait for the price to break through the resistance level and make a swing high point.

3 - Price should then retest the resistance level and start moving up again.

4 - Price should break the recent swing high point to make it a valid break.

5 - Now, you should take the buy entry just above the break of swing point.

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ETH/USD chart on 5 minute time frame showing Buy Entry Criteria

Entry Criteria for Sell Position

1- Market should be approaching a support level and you should mark that level.

2 - Wait for the price to break through the support level and make a swing low point.

3 - Price should then retest the support level and start moving down again.

4 - Price should break the recent swing low point to make it a valid break.

5 - Now, you should take the sell entry just below the break of swing point.

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ETH/USD chart on 5 minute time frame showing Sell Entry Criteria

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Trade Exit Criteria for BRB Strategy

I am explaining the trade exit criteria for both Buy and Sell Positions. You should also set Stop Loss levels and Take Profit levels for both scenarion i.e. Profit or Loss.

Exit Criteria for Buy Position

1 - We should set a Stop Loss Level in case our trade goes in the wrong direction after entry.

2 - This Stop Loss level should be just below the resistance level price has broken.

3 - If the price crosses the stop loss levels, it means the trade setup is invalidated and we should exit the trade and wait for another setup.

4 - We Should Set Take Profit level in case our trade goes in the desired direction.

5 - Take profit level should be 1:1 RR (Risk:Reward) at least which means it should be equal to our stop loss level.

6 - I will recommend everyone to use 1:1 RR until they get good practice with this strategy.

7 - When price hits your take profit levels, you can book the profits ar exit from trade.

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Exit Criteria for Sell Position

1 - We should set a Stop Loss Level in case our trade goes in the wrong direction after entry.

2 - This Stop Loss level should be just above the support level price has broken.

3 - If the price crosses the stop loss levels, it means the trade setup is invalidated and we should exit the trade and wait for another setup.

4 - We Should Set Take Profit level in case our trade goes in the desired direction.

5 - Take profit level should be 1:1 RR (Risk:Reward) at least which means it should be equal to our stop loss level.

6 - I will recommend everyone to use 1:1 RR until they get good practice with this strategy.

7 - When price hits your take profit levels, you can book the profits ar exit from trade.

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Example of BRB Trades on Crypto Assets

I hope you have understood Break Retest Break (BRB) strategy along with its entry and exit criteria. This is a very simple strategy, especially for intraday and scalping trades. I am showing you some examples on crypto charts where the strategy has worked well.

Litecoin on 15 Minute Time Frame

This sell setup on Litecoin has worked really well to give an easy 1:1 profit.

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ADAUSD on 1 Hour Time Frame

This sell setup on ADAUSD has worked really well to give an easy 1:1 profit.

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Ripple on 5 Minute Time Frame

This Buy setup on Ripple has worked really well to give an easy 1:2 profit.

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Final Words

  • Break Retest Break (BRB) is price action pattern that can be used to trade trend continuation at important S&R levels.

  • You can mark the important support and resistance levels on your charts and wait for BRB setups.

  • There are certain entry criteria that you should monitor before taking BRB Trades.

  • You should understand the trade exit criteria for both scenarios i.e. profit and loss.

  • You can spot BRB trades on any time frame. Shorter time frame will provide you more setups but it needs quick decision making. My personal favorite time frame to trade BRB strategy are 1 hour and 15 minutes.

  • You can take the BRB trade on any important support and resistance level even in middle of market structure.

  • BRB strategy is very useful for intraday and scalping but it can be used at higher timeframes as well.

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Homework Task

1 - What do you understand about the Concept of Break Retest Break Strategy? Give Chart Examples from Crypto Assets.

2 - Mark important levels on Crypto Charts to trade BRB strategy. Do it for Both Buy and Sell Scenario.

3 - Explain Trade Entry and Exit Criteria for both Buy and Sell Positions on any Crypto Asset using any time frame of your choice (Screenshots Needed)

4 - Place 2 demo trades on crypto assets using BRB Strategy. You can use lower timeframe for these demo trades (Screenshots Needed)

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Rules

  • Your homework post should have at least 300 words. You can write more but I want you to be specific about your answers and do not write super lengthy paragraphs.

  • You must post your homework post in SteemitCryptoAcademy Community.

  • Plagiarism of any kind will not be tolerated and result in severe actions against the offenders.

  • Create your own charts and use only copyright-free images with proper reference if you have to use them.

  • You can submit your homework post by 17th July 23:59 UTC. Any post submitted after the deadline will not be entertained.

  • You must include #cryptokraze-s3week3 and #cryptoacademy among the first 5 tags.

  • Members who are doing power down will not be considered for evaluation and grading.

  • To be eligible for participating in Advanced Tasks, you must have 60 reputation and minimum 500 SP.

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Publisher : @cryptokraze
Discords : FxKraze#2451

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 2 months ago (edited)

Prof @cryptokraze thanks for this beautiful lectures. But am a bit confused in-between at the BRB for Resistance level and BRB for support level..

Does the trend have anything to do with this two levels. Because I was thinking the BRB at Resistance level should be what should be happening at the BRB at the support level and vis-ver-versa.

This also affects my understanding of the critiria for the buy and sell entries, especially the very first criteria for the both entries.

I hope you understand what I mean Prof 🙏
Plz help me clear the air

There are support and resistance levels on any chart.

This break and retest happens on these levels.

If BRB happens on resistance level, we will take buy positions.

If BRB happens on support level, we will take sell positions.

When in uptrend you will see setups on resistance levels. While during downtrend you will see setups on support levels.

 2 months ago 

Beautiful one Prof. your last paragraph just cleared the air for me Prof @cryptokraze thank you very much..

Hello professor,
Which TA is the best to apply with BRB strategy to mark support and resistance levels?
Thanks!

Support and resistance levels are marked manually.

The levels from where price has reversed.

You can use Zig zag indicator to spot those levels easily.

There are supoort and resistance indicators as well in trading view that can be used but they will draw too many levels. That is why I prefer manual marking.

Ok prof, thank you for the clarification.

Concerning question 4, do we have to do a real trade and show details?

Yes place trades and show the details.

Okay. It's alright.

Good presentation and an educative lecture as well. Your lesson was really in simple language for understanding I am really impressed by it and hope to submit my response to the assigned task soon.🤗🤗

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Sir, I think you have marked wrong break point at reset point . if i am wrong please correct me. thankyou

It is a typing error. It has been rectified.

Nice presentation prof. I hope to submit my part too. One love.

 2 months ago 

Amazing lesson from you professor @cryptokraze. I can't wait to perform the homework task.

 2 months ago 

Looking forward to participate

السلامُ علیکم. Respected Professor @cryptokraze, I submitted my homework post for [email protected] and was given 9/10. Unfortunately it was not curated by steemcurator01. As Professor kouba01 has not posted his lecture and you have been given this task. Can you please review my homework post so that it might be curated this time. I have reposted the homework post. My link is given below. Thanks

https://steemit.com/hive-108451/@mawattoo8/re-cryptoacademy-season-3-or-or-homework-post-for-kouba01-or-or

Hi Professor @cryptokraze,
I hope you are doing well!!
I was a great learning for me and here is my assignment.
https://steemit.com/hive-108451/@amar15/steemit-crypto-academy-season-3-week-3-break-retest-break-brb-strategy-to-trade-continuation

3 - Place 2 demo trades on crypto assets using BRB Strategy. You can use lower timeframe for these demo trades (Screenshots Needed)

I think this is question 4 professor?

Hey professor @cryptokraze

2 - Mark important levels on Crypto Charts to trade BRB strategy. Do it for Both Buy and Sell Scenario.

What levels do we have to mark here? This question is quite not understandable, whether I have to show buy and sell entry or exit point or just use BRB strategy without entry and exit points?

Please reply

Thank you.

Levels on chart where you would take BRB setups. Not necessary to mark entry and exit in this question. Just mark the levels with lines on chart

Hi, Prof @cryptokraze. I need a reliable exchange to place my demo trades. Do you have any in mind?

You can use metatrader 5. Once you install from google play store, it will automatically create a demo account for you. However, you must be very smart to use it because it's a forex trading platform. Also, tradingview is okay, but if you don't subscribe to their monthly packages, you will only access limited features.

Thank you. I was actually looking for a Crypto demo trading platform.

Hello professor @cryptokraze

I posted my assignment on Tuesday and it hasn't got checked yet. So I thought I should leave the link to my assignment here

 2 months ago 

Hello professor @cryptokraze, nice and explanatory lecture here is my homework

 2 months ago 

Hello once again professor. This is my new task already done. Regards from Latin America. #venezuela #affable

https://steemit.com/hive-108451/@alegnita/crypto-academy-season-3-week-3-homework-post-for-cryptokraze-or-brb

Estimado profesor, mi tarea de esta semana aún no ha sido corregida por usted.
Mi tarea es esta:
https://steemit.com/hive-108451/@prosperamente/crypto-academy-season-3-week-3-homework-post-for-cryptokraze-estrategia-de-break-retest-break-en-el-trading
Gracias de antemano.