Intraday Break Block Retest Strategy – Catch Smart Money Moves with Precision 🔥📉

📊 What’s Happening in the Chart?

This strategy focuses on trading a momentum shift after a liquidity grab and a break block retest.

1. Liquidity Grab (Fake Out)

- Price fakes above a key level (resistance).

- Triggers buy stops from retail traders.

- Institutions use this moment to grab liquidity (fake breakout).

🔍 Key Insight: A fake out often signals that the market will move in the opposite direction.

2. Break Block Zone

- After the fake out, price shifts momentum downwards.

- The large red candle breaks through a support zone = Break Block.

- This signals a change in market direction from bullish to bearish.

🔍 Break Block = the last bullish candle before the bearish momentum shift.

3. Retest & Confirmation

- Price retraces back to the break block zone (gray area).

- This is where you wait for confirmation to sell — often via rejection wicks, bearish engulfing, or other price action signals.

- Once confirmed, enter a sell trade.

4. Trade Execution Zone

- Enter after confirmation during the retest.

- Place Stop Loss (SL) just above the Break Block.

- Target new lows — ideally a 1:2 or higher risk-to-reward ratio.

✅ Key Tips Summary

- Only trade confirmed setups (don’t guess).

- Use 1–2 solid setups per week for consistency.

- Use price action (like candlestick patterns) to confirm entries.

- Combine with confluence factors (e.g., session times, news).

📋 Checklist for This Strategy

1. ✅ Momentum Shift — Watch for strong shift in price (big candle)

2. ✅ Liquidity Grab — Price manipulates above/under key levels

3. ✅ NY or London Session — Ideal timing for smart money moves

4. ✅ Break Block Formed — Clear candle breaking through structure

5. ✅ Retest with Confirmation — Entry after pullback

6. ✅ Use Timeframes — M15, M30, H1 work best

7. ✅ Check Fundamentals — Avoid trading into major news

📉 Right-side Drawing Explanation

This simplified sketch reinforces the structure:

- Fake out above previous high

- Break block creates a reversal zone

- Price retests the zone → then sells off

- Target: new lows

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