I’m going to be brutally honest:
Most traders lose money because they can’t sit on their hands.
They see a candle poke above resistance, and they jump in. Ten seconds later… SLAM. Price reverses, triggers their stop loss, and leaves them staring at yet another red number on the PnL.
Sound familiar?
I’ve been there. Especially when trading price action ranges.
But there’s a way to trade ranges without getting slaughtered by every fakeout spike:
Range trading with breakout confirmation.
Today, I’m breaking it down real talk style—no fluff, no “guru” nonsense.
🚀 Why Ranges Matter in Price Action
Before we dive into the strategy, let’s get one thing straight:
Markets spend more time ranging than trending.
It’s just facts.
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Forex pairs chop sideways for days between major news.
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Gold can coil up in a tight $10 range before exploding.
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Even stocks often consolidate before a breakout.
If you only trade trends, you’re sitting out a HUGE chunk of market action.
Trading ranges is how professional traders survive the in-between times.
But Wait… Why Do Traders Get Destroyed in Ranges?
Because ranges are:
✅ Full of fakeouts.
✅ Boring as hell.
✅ Tempting to trade prematurely.
You see a breakout candle… your adrenaline surges… you FOMO in… only for price to slap back into the range.
The market makes money off your impatience. Period.
The Solution: Breakout Confirmation
Here’s the secret sauce:
Don’t trade the first breakout. Trade the confirmation.
Sounds simple. But this one mindset shift saved me thousands in losses.
Instead of blindly buying every candle that pokes out of the range:
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Wait for price to retest the broken level.
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Enter only if the level holds as new support or resistance.
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Keep stops logical—below/above the retest zone.
This single tactic filters out 80% of fakeouts.
🎯 Step-by-Step: Range Trading with Breakout Confirmation
Let’s keep it practical. Here’s how I trade it:
1. Identify the Range
On your chart:
✅ Look for at least two touches on the top and bottom.
✅ The more touches, the more valid the range.
✅ Mark horizontal lines for support and resistance.
Example:
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Gold ranging between $2,320 and $2,340.
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EUR/USD chopping between 1.0850 and 1.0950.
2. Wait for the Breakout Candle
This is where most traders blow it.
Don’t jump in immediately.
✅ Let the candle close above resistance or below support.
✅ Bigger candles = stronger breakouts.
✅ Volume spike helps confirm it’s not a random tick.
3. Wait for the Retest
The real test:
✅ Price breaks out…
✅ Then drifts back to the broken level…
This is your moment.
✅ If price respects the level:
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Holds above it → new support
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Holds below it → new resistance
That’s your green light.
4. Enter on Confirmation
✅ Enter your trade after the retest holds.
✅ Keep stops logical:
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Below new support (if buying)
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Above new resistance (if selling)
✅ Target the size of the range or the next key level.
5. Manage Your Trade
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Don’t panic over small retracements.
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If price dumps back into the range, cut the trade fast.
Real Talk Example: Gold Breakout
Say gold has been stuck between $2,320 and $2,340 for three days.
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You see a strong candle close at $2,345.
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You resist the urge to FOMO in.
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You wait for gold to drift back and test $2,340.
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Gold dips to $2,341… wicks… and bounces to $2,346.
✅ THAT’S your entry.
Target might be $2,360. Stop loss around $2,335.
Fakeouts avoided. Stress levels lower. Profit potential intact.
Why This Works
Markets move because of liquidity hunting.
Smart money knows traders pile stops just outside ranges. So they:
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Fake a breakout.
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Trigger stops.
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Reverse the move.
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Sweep all that sweet liquidity.
By waiting for a retest, you:
✅ Avoid fakeouts.
✅ Enter only when real momentum appears.
✅ Trade with the pros, not against them.
My Hot Take
Price action trading is NOT about calling tops and bottoms. It’s about waiting for the market to show its hand.
Trading the retest changed my entire career. I went from revenge trading every breakout… to only trading the ones that passed the confirmation test.
So if you’re sick of bleeding money on every fake breakout, try this:
Slow down. Let the retest come to you.
Because in trading—and in life—the patient ones usually win.
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