BEARISH STRONG BREAKOUT
(Strong support break)
How to identify
- Price tests Support multiple times but bounces weakly
- Candles breaking close strongly below support
- After the breakdown with no retest, price drops quickly
Trading method
- Sell immediately after the breakdown candle
- SL above the old support area
- TP according to the downward trend / R:R ≥ 1:2
Advantages
- Clear trend, price moves quickly
- Suitable for momentum traders
Disadvantages
- Easy to chase sells if entering late
- Risk of false break in sideways
Core idea
A strong break means you go all in – the market won't come back to ask for the buyers' opinions
BULLISH STRONG BREAKOUT
(Strong resistance break)
How to identify
- Price accumulates below Resistance
- The bottom after is higher than the previous bottom
- Strong breakout candles, closing above resistance
- No clear retest
Trading method
- Buy after the breakout candle
- SL below old resistance
- TP according to upward trend / trailing stop
Advantages
- Strong momentum, easy to reach TP
- Little fluctuation after breakout
Disadvantages
- Easy to chase buys
- Not suitable for traders who like retests
Core idea
A clear break means follow – don't wait for a good price in a strong market.
BEARISH BREAK & RETEST
(Break support – Pull back – Continue to drop)
How to identify
- Price breaks Support
- Then pulls back to test the area just broken
- Old Support → New Resistance
- Price is rejected and continues to drop
Trading method
- Sell at the retest area
- SL above the old support area
- TP according to the old bottom / good R:R
Advantages
- Nice entry point, short SL
- High probability, less price chasing
Disadvantages
- Not always a retest
- Deep retests can easily sweep SL
Core idea
Break to confirm – pull back to sell safely.
BULLISH BREAK & RETEST
(Break resistance – Pull back – Continue to rise)
How to identify
- Price breaks Resistance
- Then pulls back to test again
- Old resistance → New support
- Price holds the retest area and continues to rise
Trading method
- Buy at the retest area
- SL below the new support
- TP according to higher peaks / R:R ≥ 1:2
Advantages
- Confident trading, good risk control
- Suitable for swing & intraday
Disadvantages
- You may miss the opportunity if you don't retest
- A deep retest can easily lead to a false break
Core idea
Break confirms the trend – retest for optimal entry
