SEC S18-W6 || Mastering the Break Retest Break (BRB) Strategy

Hello all my friends...

^{edited on inCollage application}

Trading on financial markets is one way to make a profit. However, like any other business, trading also has risks that cannot be avoided. To reduce risks and increase profit opportunities, the right strategy is needed. One strategy that is popular and often used by traders is the break and retest trading technique.

---

Explain in detail the concept of the Break Retest Break (BRB) strategy. How can this strategy be applied specifically to trading the Steem token?

The Break Retest Break (BRB) trading technique allows traders to take advantage of price movements in financial markets by identifying significant support and resistance points. In this technique, traders will look for opportunities to enter the market when the price has penetrated a significant support or resistance level and retest at that level. Retest is a condition when the price returns to a support or resistance level that has been penetrated to check whether this level has become a new level.

^{BRB Strategy
Image source}

---

Taking advantage of break and retest conditions can help traders to take positions with lower risk. By entering the market after a retest, traders can have confidence that the support or resistance level that is broken is indeed a new level and will continue in the direction that has been broken. Apart from that, this trading technique can also help traders to identify trends and potential reversals in market direction.

This strategy is carried out by identifying price levels that have been tested several times in the past, then waiting for the price to break through these levels before taking a position. This strategy can be used in any time frame. The key to the break and retest trading method is finding areas of support or resistance levels where prices have failed to move above or below those levels before. When this happens, it shows that there are buyers or sellers who are willing to defend the level and provides an opportunity for traders who want to enter to take advantage of the trend direction when the level is broken.

In the Steem token, we can see when shares move. It is very important for us to determine the support and resistance line spots. And we actually have to see a retest in the action of a breakout and a full retest of an asset must first break through a support or resistance level, and then return to that level, to test again whether this is a false signal being given or not. This is done to ensure that the breakout determines a new support or resistance level.

^{determine the buy/sell position on the BRB strategy
Image source}

So, when we are sure that this level appears, we can set the price of the Steem token properly and don't forget to set a stop loss if there is a fake signal. The results of this profit can be sent to the steemit user's wallet and can be invested into Steem Power by powering up. The break and retest pattern is a very useful technique for traders to identify trading opportunities, especially to achieve significant profits.

---

What are the specific entry criteria for a position using the BRB strategy? Includes specific technical indicators and market conditions for the Steem token.

---

The skill of identifying break and retest opportunities is something that is very important for every trader, because by understanding the support or resistance levels that occur, a trader can take advantage of potential price reversal opportunities and obtain a profitable position in trading. One of these criteria is as follows;

• look for instruments that have shown strong movements and are experiencing a period of consolidation or are running in a channel, so that opportunities arise forsee the next price movement.
• Once we see price pushing above resistance or below support, the previous support becomes new resistance, and vice versa. But it is not yet time to execute the trade, because the pattern is still new and a false breakout could occur here.
• Wait for price to retest to the same level that was broken, which now acts as new support or resistance. Look for a rejection candlestick or reversal pattern on the retest to confirm and enter a trade in the direction of the breakout, or we can draw an assistance line. (I use it with simple tools from my cellphone).
• Look for rejection candlesticks or reversal patterns on the retest to confirm and enter the trade in a breakout position.

With these criteria, we can easily identify market movements using this BRB strategy. We can also use various supporting indicators to ensure that the pattern of market movement that we observe using this strategy is correct.

Traders can use various other indicators such as moving averages or oscillators such as RSI (Relative Strength Index) along with trend lines and chart patterns such as triangles or flags to help identify potential breakouts and retests more accurately so that this will minimize errors in analyzing upcoming market movements. resulting in market reversals at any time or large losses.

^{BRB and supporting indicators Moving Average
Image source}

---

In this situation, traders who use breakout and retest strategies can take advantage of potential price movements that occur and gain a profitable position.

However, it is very important for traders using this strategy to use risk management techniques such as setting stop losses at reasonable levels. This aims to prevent them from getting caught in movements that can quickly reverse direction.

---

Describe the exit criteria for a position based on the BRB strategy. What signals or conditions should be present to close a position in profit or loss?

---

Actually, this is very difficult to do because when the trend movement increases and when we place a buy/sell position and make a profit, we will feel that this can continue (market psychology is at play). When we have placed a profitable spot position, we want more and more and even hope that we will get profits of up to 100% more. Wow, this was so tempting that we were tempted and in the end we didn't get out of the way we were supposed to, even though the BRB strategy we used had already passed its position and in the end we became victims of market psychology because of our own actions (overtrading).

Therefore, deciding when and where to enter or exit a trade is an important component of any trading strategy. This task tends to be challenging for both experienced and novice traders. First of all, there are many elements that influence the direction of the market. Additionally, market trends are constantly changing so hesitation in entering or exiting a trade for even one minute can reduce potential profits or increase the risk of experiencing losses. Entering at the right time will maximize our profits.

• Confirm retest using technical indicators such as the indicators we have studied so far. Exit the trade when we observe a rejection or reversal signal at the retest level after entering the trade (We recommend that we look at the stock's previous history).
• Stop losses by setting our stop loss slightly below or above the retest level, using it as a guide. This protects our trades from false breakouts or price spikes that suddenly reverse.
• Set take-profit levels based on the risk-reward ratio and market conditions (preferably 1:2), or key support/resistance levels to estimate possible targets and we can exit calmly and safely.

The point is that we must always wait patiently to see where the market moves. Most importantly, waiting for the market to produce a profitable setup will teach us a lot of patience and caution. This alone will have a huge impact on our trading and will bring us one step closer to winningUK makes consistent profits because in reality, trading is greatly influenced by a trader's emotions. Make sure we stay comfortable and calm so that all our efforts when trading get the results we want.

---

Provide a detailed example of a BRB trade on the Steem token. Include entry points, exit points, and the reasons why you chose these points. Use graphics to illustrate your example.

---

As we discussed previously, in this technique, traders will look for opportunities to enter the market when the price has penetrated a significant support or resistance level and retest at that level. OK, we can see the graph below.

^{determine entry, exit points on Steem tokens
Image source}

---

In the graph above, we can see that the resistance line breaks and forms a BRB strategy that we can use to analyze the direction of the market trend. To enter, first look at the direction of market movement with the pattern above to be able to determine the BRB strategy. And for that, all criteria must be met, namely finding a support or resistance level area where the price has failed to move above or below that level.

Identify Break and Retest Settings. We should have observed the history of previous trend movements. When we are sure that this is a break and retest, we can set entry and exit points that are in line with the breakout and retest strategy in the previous history. After determining strong market movements, we can use technical analysis tools such as support and resistance level lines.

Don't forget to set your stop loss slightly below or above the retest level, using it as a guide. This protects our trades from false breakouts or sudden price spikes. And for the final step, we should determine our take-profit level based on the risk-reward ratio and market conditions.

After we get what we want from the start of trading, we should get out because there could be emotional turmoil for trading rashly and not being careful so that the profits we have obtained earlier could run out. We must also remember that time is of the essence here. I chose that point because it is an entry at the right time and it is easier to analyze because it has a simple pattern, because I am a beginner, this will really help me to get maximum profits so that I can invest significantly in Steem by exchanging it on Steemit wallet becomes Steem power by doing a powerup.

---

How do you manage risk and capital when using the BRB strategy? Discuss risk management techniques and how to set stops and limits for Steem token trades.

---

When trading breakouts, one of the main things that traders must pay attention to is risk management. This is very important to minimize potential losses if the breakout fails. One way to manage risk is to use a stop loss, which will close the position automatically if the market moves against the trader at a predetermined price level.

In addition, traders can also use trailing stops to lock in profits while still leaving room for open positions if the trend continues. However, keep in mind that position sizing is also very important when trading retests because this strategy is riskier than other strategies. Therefore, traders should consider using smaller position sizes so that any potential losses do not have a significant impact on overall portfolio performance. In essence, don't use all your assets to make one trade with one strategy.

There is no guarantee that a particular breakout will be successful, therefore, traders should always be careful when entering this type of trade and ensure that they have an exit plan before allocating capital to the tradeing. Traders should also avoid chasing breakouts as this can lead to overtrading and increase unnecessary risks such as slippage or price gaps due to lack of liquidity during periods of volatility.

---

Conclusion.

After studying trading techniques utilizing break and retest, it can be concluded that this technique is an effective technique for maximizing trading opportunities by reducing risk. This technique involves identifying breakouts of support and resistance levels and waiting for a retest before entering the market. A retest provides confirmation that the breakout is valid and indicates an opportunity to enter the market at a better price.

However, it is important to remember that not all breakouts will be followed by a retest and not all retests will be successful. Traders must continue to monitor the market and pay attention to price movements to determine whether this strategy is appropriate to use. Additionally, good risk management is essential in minimizing losses and maximizing profits. In the risky world of trading, trading techniques utilizing breaks and retests can help increase trading success in a measurable way.

Until here, my participation in the Steemit Engagement Challenge S18W6 at SteemitCryptoAcademy.
I would like to invite my friends to participate in this Steemit Engagement Challenge, @eliany @chant @stream4u @drhira @irawandedy @goodybest @paholags @starrchris @sahmie @hamzayousafzai @el-nailul @sofian88 @alee75

^{Thank you also for supporting me at every opportunity}

greetings,
From your friend
❤

ABOUTME

Where there is a Will there is a Way
Greeting friends!