Setup Price Action - 1: A false break

The false break is a Setup price action that allows you to buy the bottom and sell high with high probability:

A false break occurs when the price breaks through a resistance level (or peak) then reverse the decline in the opposite direction. Similarly when price breaks below a support level (or bottom) and then bounces up in the opposite direction.

The false breakout pattern is strong in that it makes use of two favorable forces to make prices move and make profits: with a false breakout from bullish to bearish, the market will be kicked down by the profit-taking of the bulls. previous buyer, plus the downside force from the buyer, breaks the stop loss when the price falls. Contrary to the break from decrease to increase.

Trading way:
  1. Look for candlesticks that rise sharply to resistance
  2. For the price to break a clear high or resistance (let buyers jump in to buy a break)
  3. Wait for the price to drop 1 big bar and sell when this candle closes.
Do the opposite of the upside.

For example:


Setup Price Action - 2: Break the structure

Breaking structures helps you start a new trend wave.

Breaking structure is a signal confirming that the old trend is broken and forming a new trend, so it will be very advantageous to enter orders at the beginning of a new trend.


Trading way:
  1. Wait for an uptrend to approach a very strong resistance zone on a larger timeframe.
  2. Price cannot make a higher high but instead makes a lower high (this is the stop-loss)
  3. Sell when the nearest swing low is broken.
For example:


Tip: When an uptrend approaches resistance, the candlestick should have a shorter body, a long shadow, and possibly break the ema 21 line before breaking the structure. Therefore, when there are these signals, you should prepare to enter an order.

Setup Price Action - 3: Breakout with buildup cluster

Breakout with a buildup cluster is the best way to trade threshold break.


Price rose to resistance and began to accumulate. However, the price could not fall but was continuously "stuck" just below the resistance. That accumulation is called buildup. As soon as the price breaks to buildup, we buy.

For example:


Tip: the market has to trade sideways in at least 80 candlesticks, so the resistance is strong enough to create a rebound for the break.

(CONTINUE)