Breakout and retest: the swing strategy our engine runs

Breakout and Retest is a swing strategy: a stock consolidates below aresistance levela daily candle closes above it onvolumethe price returns to retest the level from above and holds, then continues. The entry is a trigger above the structure, the stop is below the structure, and the target is at the next level. A trade lasts days to weeks, not minutes. This is the strategy that TechAnalyzer Pro's engine runs across its entire universe, on closed candles only, which is why this is the only page here that describes not just a method but also how it's actually measured by us.

Full transparency upfront: every signal the engine publishes is recorded with an entry, stop and target at the moment of its creation, and is decided based on the candles that followed. The track record, including the losses, is open on the site. There is no return table here, intentionally: results of live signals are something you see, not something you quote.

The Setup: what needs to exist before there's a trade

• Structure: a level that has been tested more than once, with a consolidation period beneath it (triangle, flag, range). A breakout without consolidation is usually noise.
• Breakout: a daily candle that closes above the level. A close, not an intraday touch. Until the candle closes, there is no breakout and no signal; this is the gate that prevents creation of signals on moves that get erased by end of day.
• Volume: above average on the breakout. A breakout on thin volume is a classic trap.
• Regime: S&P 500 above 200 averageWhen the broad market is below, the engine doesn't generate long setups. Shorts are not generated at all.
• Quality: Risk-reward ratio minimal between the entry, the stop and the target; blocking of setups at the extreme RSI; and timeframes of daily and weekly only. Each of these gates was added after being tested on our history and improving the result, and what was tested and didn't improve (double volume confirmation, alignment to 50 average) was not added.

Execution: trigger, stop, target

• The trigger is located above the current price, above the structure. It's a conditional order, not an immediate buy: if the price doesn't get there, there's no trade. In our measurement about a quarter of signals are not filled, and that's part of the method.
• The stop is below the structure, at a distance derived fromATR with breathing room. We tested a tighter stop: more trades were "stopped out and then continued to target," and the overall result suffered. The maximum loss per trade is set before it opens.
• The target is at the next resistance level, fixed. We tested the alternative of a trailing exit on channel break on the same setups: bigger runners, but a lower success rate, longer holding time, and with an account with limited positions a worse result. The fixed target remains.
• Expiration: a signal that hasn't been decided within 40 candles closes at the candle's price, and is recorded as is. It doesn't disappear, it isn't corrected.

How the track record is measured, so it can be trusted

• Real fill: A signal is only counted as a trade if the range of the candle following it contained the trigger. In our testing, giving up this rule created a "profit" of hundreds of risk units that didn't actually exist, because losers always "get filled" (the stop requires passing through the entry) while winners don't always run.
• The stop wins on a tie: A candle that touched both the stop and the target is recorded as a loss. Every uncertainty is resolved against the method.
• Closed candle only: Signals are born from closed candles, not from intraday movement that can disappear.
• Everything is public: The signals table, broken down by ranking and timeframe, and a virtual portfolio that buys and sells according to those exact same signals, with no discretion. Anyone who wants to know if the method works can look, instead of trusting us.

Who this is suitable for

For those who have a day job. The setup is born after the close, the trigger and stop are known in advance, and conditional orders execute the trade even when you're not in front of the screen. Swing trading On daily candles it's the only style in which costs are small relative to risk and in which you can think before acting. With Position size Fixed and small, a single loss is a routine event and not a disaster.