@hattiemae
@hattiemae ⭐ Trading Breakdown: Master These 4 Core Concepts
Whether you’re new to trading or leveling up your skills, these four chart concepts can massively improve your market understanding. Here’s a simple breakdown of what each visual represents and how you can use it in your own analysis:
1️⃣ Break & Retest Strategy
One of the most reliable price-action setups.
A breakout becomes meaningful only when price retests the previous level and holds.
How it works:
Price breaks above resistance
Pulls back to retest the level
Buyers step in → continuation higher
Use this setup to avoid fakeouts and enter with confirmation rather than guessing tops or bottoms.
2️⃣ Bullish Divergence
A classic reversal signal—especially powerful on RSI or other momentum indicators.
Key idea:
Price makes a lower low
RSI makes a higher low
This shows momentum weakening even as price is falling. It often precedes a trend reversal or strong corrective move upward.