Breakout entry with retest and price action signal
So we got to the most reliable and best signal to enter the market when trading level breakouts. We use the farewell method with the level, only when the price touches the broken line, we want to see the price action pattern.
Below is a graph of the EUR / JPY currency pair, daily timeframe.
The price is trying to break through the support level, but it fails and rolls back. On the second attempt, the market managed to overcome this level, and it returns to say goodbye. But the farewell was not easy, as a “souvenir” the market left the level of a bearish pin bar, which pushed the price down 198 points.
For the correct entry to the breakdown by this method, we need to wait for the level to be overcome, the return, and the formation of the setup price action.