Crypto Academy / Season 3 / Week 3 - Homework Post for [Crypto Professor @cryptokraze]

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

Concept of break Retest Break

This concept is popular with traders, and crypto traders are left out. This strategy has shown to be a long-term profitable concept for traders in the market. This concept is more about that point on a chart when a trend reaches a point of breaking out and going through a bullish or bearish. These points in technical analysis for a trader are known as support and resistance level, which are mostly under short duration. Most traders get into either buying or selling following the market trend in respect to the support level and resistance level of the asset. Let look at the two situations where traders are forced to apply break Retest Break for both Support and Resistance level

A break and retest strategy simply happens once an asset makes a bullish or bearish breakout, then retest the previous resistance or support then continues taking the same direction of the first trend.

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

A) Break Retest Break support level.

Like I mentioned above, this breakout points to the market trend occurring on a downward movement, we are observing support levels. The longer the duration of the trend, the more support level the trader will face. This is very clear when a new swing low point keeps repeating itself. A new swing low point is created when the trend moves upwards and creates a new retest point creating a new break retest. When the new swing low point is lower than the previous one over some time, the trader is observing Break Retest Break Strategy at the support level.

B) Break Retest Break(BRB) at Resistance level

Now we will be talking about a situation when we are on an upward trend movement in the market. Statistics have shown that it is difficult to find a straight line moving upward, so we always have the break-out points and retest points along with the trend. Because of this reason, new swing high points are created, and the longer the duration, the possibility of more swing points. For every new swing high point created, which is higher than the previous swing point, the trader using this situation is observing a Break Retest Break strategy at the resistance level.

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)

Buy entry criteria

• We have to identify the resistance level on the chart of the asset
• We have to make sure the resistance level and the retest are on a continuous upward motion to create a new swing high point.
• We have to always set a buy order above the last swing high point.
• Take your time and wait for a clear trend to emerge, and a strong entry point.
• Make volume indicators are your friend to know how much is in the market.

Now you can set your buy trade entry in a more comfortable manner.

Sell Entry criteria

• We have to identify our support level on the chart for the asset
• We have to make sure our support level and retest is in a continuous downward movement( toward creating a new swing low point)
• We have to study how deep the support retest look.
• As soon as the support retest surpasses the previous swing low point.

Putting all this into consideration, we should set our sell order to reduce losses.

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Exit buy position criteria

• Set a stop loss level to take care of the loss rate in case of the negative trend movement in the market.
• Set the stop loss level below the swing point
• Set a take-profit level to help exit as soon as the profit point is reached.
• Set the take profit level above the entry point depending on your target so you can book your profit.

Exit sell position criteria

• Set a stop loss to protect your entry in case the trend goes in a negative direction.
• Make sure stop loss is set above the swing low point.
• Set a take profit level to give a chance in case the trend goes in a positive direction.
• 1:1 RR(Risk: Reward), is just a best practice for me which means the same ratio in stop loss level and take profit level.
• Exit the trade as soon as take profit level is reached.

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

A

While watching the chart the pair TUSD/USDT, with a resistance level at 1.00004506, decided to enter the trade. Setting a 1:1 RR, setting a take profit at ~ 1.0003 and a stop loss at ~ 0.9997.

B

While watching the chart the pair BSVBEAR/USDT, with a price above the resistance level at ~0.000129, decided to enter the trade. Setting a 1:1 RR, setting a take profit at ~ 0.000135 and a stop loss at ~ 0.000125.

This strategy doesn't seem easy like the theory makes it look to be. I have to do more practice to understand and trading for huge profits.

Conclusion

There are no actual rules to fine the simplest entries and exits points. Instead, there are techniques that we simply have to utilize to assist our management in finding when to enter or exit.

Over time you improve and develop your market strategy skills. No trader as of now can pinpoint the most comfortable entry or exit point. It’s all developing techniques and how to analyses charts. Like what the prof @cryptokraze mentions, you can analyze your support and resistance level while waiting for BRB to set up. But the overall to reduce loss is to set a Stop loss level whenever you enter any trade