From TradingView · · 1m 20s
Break, retest, then enter
A gold trader's five-step filter for telling a real breakout from a fake one.
In brief
A gold trader's five-step filter for telling a real breakout from a fake one. A break of a key level is only the first step. No retest and rejection means no trade. Originally reported by TradingView.
Breakouts lie
Hsan_Benhmed trades break and retest on gold because price alone breaking a level proves nothing. The setup waits for the market to come back and prove the level flipped.
“A breakout alone is not my entry.”
Gold sat in a range
On the 4H chart, XAUUSD was consolidating under a major resistance zone it kept respecting. That clean, repeated level is what makes the later break readable.
Zoom in to confirm
Once gold broke out, he dropped to the 15-minute chart to watch the pullback into old resistance. The higher timeframe picks the level, the lower one times the entry.
“To confirm the retest, I switch to the 15-minute timeframe.”
The confirmation trigger
Price pulled back to the broken resistance, held, then broke above a descending trendline. That break of the pullback structure was the bullish green light.
Five steps, in order
Break, retest, rejection, confirmation, entry. Skip a step and you are guessing, not trading a setup.
“Break → Retest → Rejection → Confirmation → Entry”
Works short too
EURUSD broke below a rising wedge support line, then rallied back to retest it. The old support held as new resistance, confirming the short.
“If the retest does not confirm the move, there is no trade.”
The one thing
A break of a key level is only the first step. No retest and rejection means no trade.
