A few months ago I spoke about a trade setup called break test and enter that I execute on frequently. The sequence is as follows:
Break - Pre-defined level of support and resistance (S/R) has been broken
Test - The broken level of S/R is tested confirming previous support as resistance or vice versus
Enter - Enter the trade only after the price bar closes above/below the high/low of the test bar.
Today we saw another intraday example of the break test enter trade setup. Below is the SPX 15min PnF that we have been using for the past little while to determine the area of demand and supply at these nose bleed levels highlighting the 1757.8 level.
Thanks for reading.