Crypto Academy Season 3 Week 3 Homework Post for (@cryptokraze) Break Retest Break (BRB) Strategy to Trade Continuation

Hello everyone. This week lecture was also amazing and i enjoyed it as usual. I am going to do the homework for professor @cryptokraze.

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

The market moves up and down. The price keep changing continuously. The price move upward when demand increase and price move downward when demand decrease. But this uptrend and downtrend not occur in straight line.

While moving upward, there are always some higher high and higher low points. While moving downward, there are some lower high and lower low points. This movement of market generate the support and resistance level in market. In this zig-zag movement of price, the experienced and good investors apply the BRB strategy.

When Market is at uptrend, the people start selling their coins. Because of their selling , some pullbacks are observed in chart and after that, market come to the original trend.

The resistance level in best to buy the coins but when large number of investors invest in coin, the support level break and price start rising. Similarly, when people start selling their coins in resistance zone, the high number of selling result in breakdown of resistance level and market start moving downward. No trend is for ever.

BRB for resistance level

When the market is down and price of coin is low, the people consider it a good chance to enter into the market. They hope that the price will rise up in future. The large number of investments break the resistance level and price continue to rise.

Some higher-high and higher-low swings are seen while market moving upward. When the investors invest in coin and resistance level break, a large higher-high swing is occur. Then market come back to resistance level and retest the price here.

In the above graph, we can see that the market is rising up. While moving upward, the price of coin increase and resistance level is broken. Then a higher-high move occur and market again come to resistance level back. The price is retest and the resistance level is broken. Then a higher-high swing is occur which is high than previous one.

BRB for Support level

When market is up, the people consider it a good spot to sell the coins. They sell their coins and earn the high profit because the price of coin is high at this point. The large number of withdrawal break the support level and market start downtrending.

While moving downward, some lower-high and lower-low points are occured. When moving downward, a lower-high point occur. The price rise a little bit, retest the support level and again fall and a lower-low point occur again. Each lower-low is more strong than previous one.

The above graph showing that market is trending downward. The price is falling. The support level is broken. Then price rice a little bit and retest support level and again fall. The new lower-low is more strong than previous lower low.

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

Buy Entry Trade Criteria

The BRB strategy help to make the profit. We can earn more if we have proper knowledge about apply the BRB strategy. In trending upward, we first need to set a resistance level. The price is rising. The demand is increasing and market moving upward. A point will come when the price will break the resistance level. A higher-high swing will occur. Then price will fall a little bit and come back to resistance level.

The resistance level will retest here and again a higher-high swing will occur. This time the swing will be more strong and high than previous one. If we have proper knowledge about the BRB strategy, we can then make a good profit by selling the coins when market is all time high. We should set the buy price above the break line to do the trading successfully.

The above is the chart showing market moving upward. There we set a resistance level. THe price rised and broke the resistance leve. Then price raised further and then fall again. It come to the resistance level and retest it and price again rise. This time the higher-high swing will be more stronger. This will be the best time to sell the coins.

Sell Entry Trade Criteria

When the people start selling in market uptrend in large volume, the price of coin start falling. The downtrend start and market start moving downward. There are some lower-high and lower-low points while moving downward. Each lower-low is more strong than previous one in moving down.

Whenever market start downtrending, the support level is broken. Some lower-high and lower-low spots occur. The price fall continuously. Then rise a little bit, retest the support level and fall again. We should set the selling price just after the swing level is broken by price while moving downward.

The Above is the downtrend chart. First we need to have proper knowledge about the downtrend. Then we should set a support level. The price will break the support level while moving downward. Then price will rise a little bit and will retest the support level. After that, the price will fall again and this fall will be more strong then the previous fall swing. When that level is broken by price, we should set our sell price.

Question 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)

BRB Strategy Trade Exit Criteria for a Buy Position

We do the analysis before investing in market. But some time the market do not act according to our prediction and we may face lose. So to safe yourself from the lose. always set the stop lose. The stop lose is set on the chart a bit lower to the point where the resistance is broken . This will help us to avoid the further lose of money. When the price will hit the stop lose, we will sell out coins and will earn the reward. And if situation goes wrong, the price will fall to the stop lose, in this case we will face the lose. HEre it is needed that the take profit level should be equal to the stop loss level. In this case we will safe from lose and will earn the profit.

In most of the cases, the traders safe from the lose by applying this strategy. Here the ratio of risk of losing money and getting reward is 1:2. We just need to set the stop lose and sell our coins when price reach to that level to earn the profit. And if the price fall from the stop loss, we will then have to face the lose of money.

BRB Strategy Trade Exit Criteria for a sell Position

When market start moving downward, we need to set the stop lose to safe our money from lose. We set the stop lose in Exit criteria for a sell position a bit upper than the point where the support level is broken.

We should also set the take profit level to earn the profit in sell position. The take profit level in this case if equal to the stop lose level. Here the traders earn the profit when price reach to the take profit level. If we keep waiting for market more rise and keep holding the coins, we may face the lose. We should be very carefully apply the BRB strategy to safe from lose and to earn the profit in both sell and buy position.

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

The above is the Ethereum Chart. The market was trending upward. The price crossed the resistance level. The price rise up. Then a higher-low swing occur and price fall a little bit and retest the resistance level. Then again price start rising up. A buy the coin at that point.

The profit level= 800

The Top lose = 611

The price at which i bough the coin = 700

In above case, my risk ratio is equal to the profit rate.

The above is the Tether Chart. The market was trending upward. The price crossed the resistance level. The price rise up. Then a higher-low swing occur and price fall a little bit and retest the resistance level. Then again price start rising up. A buy the coin at that point.

The profit rate= 12000

The Stop lose = 11000

The price= at which i bough the coin= 11500

In above case, my risk ratio is equal to the profit rate.

Conclusion

When the support or resistance level is breaked, the trend is changes. The market goes up and down with the support and resistance level changes. These are highly important to predict where the market will move next or where the market is moving right now.

Cc
@crptokraze