The quintessential institutional entry. Price breaks above a key resistance level, pulls back to retest that level as new support, and is met with a bullish candlestick confirmation.
Indicators Used
Rules
📈 Entry Rules
- Identify key resistance using Pivot R1/R2 or swing highs
- Wait for a candle to CLOSE above resistance
- Wait for price to pull back to the broken level
- Enter on bullish confirmation candle
- EMA 20 must be above EMA 50
- Supertrend must be green (bullish)
📉 Exit Rules
- Take Profit at 2× the distance from entry to stop loss
- Partial close 50% at 1:1 R:R, trail remainder
- Exit fully if price closes below the retest level
- Exit if Supertrend flips to red
🛡️ Stop Loss
- Below the low of the retest candle
- Or 1× ATR(14) below the retest level
- SL Type: Structure-based preferred
- Buffer: 0.1% below structure
🔍 Filters
- ADX > 20 (confirm trending conditions)
- Retest must occur within 15 candles
- Volume on breakout > 1.5× average
- Avoid high-impact news events
⚙️ Configuration
- // AlgoBars Strategy Builder Config
- Indicator 1: EMA, Period: 20
- Indicator 2: EMA, Period: 50
- Indicator 3: Supertrend, Period: 10, Mult: 3.0
- Pattern Tab: Hammer ✓, Engulfing ✓, Pin Bar ✓
- Fusion Mode: PA AND Indicator
- SL Type: ATR × 1.5 | TP Type: R:R 2.0
Strategy Flow
62%
Avg Win Rate
2.1:1
Avg R:R
4-8
Trades/Week
1H
Best Timeframe
💡 Pro Tip
The best break & retest setups occur when the breakout candle is a strong Marubozu with above-average volume, and the retest touches the level within 3-5 candles with declining volume.