(SRE) How to mark up a chart: Quick self-grading checklist part 2

How to mark up a chart

How to Mark Up a Chart Series: Self‑Grading Checklist

Chart Example

Chart Example: break and retest hold

Phase	Trigger (When)	Visual Cues (Where)	Volume (How)	Action (What You Do)
Liquidity Build‑Up	Repeated tests at a horizontal band	Multiple equal lows/highs; compression candles	Neutral → rising on tests	Mark zone; expect sweep attempts
Sweep	Wick/print clears the liquidity shelf	Single decisive wick beyond the level	Volume spike on sweep	Wait for reclaim or failure
Reclaim	Close back above the swept level	Candle closes above swept high; draw reclaim line	Higher or recovering volume	Prepare for retest; no entry yet
Retest Hold	Price returns and holds reclaimed line	Candle tags line then closes bullish above it	Stable or rising on hold	Confirmation entry
Expansion	Impulsive move away from retest	Large body, momentum, follow‑through	Volume spike on expansion	Add/scale; move stop to breakeven
Destination	Price reaches logical liquidity target	Prior highs, option walls, liquidity pools	Volume varies	Take profit; exit or trail

Phase‑by‑phase checklist (tick each box)

Liquidity Build‑up

• Level has ≥2 prior touches.
• Candles show compression (small bodies, tight range).
• Tests produce no clean breakout.

Sweep

• A wick clears the build‑up level (takes out visible stops).
• Sweep candle shows higher volume than recent baseline.
• Sweep is quick (single or few candles), not a sustained break.

Reclaim

• Price closes back above the swept high on the execution timeframe.
• Mark a Reclaim line at that close.
• Volume on reclaim is neutral or rising (not collapsing).

Retest Hold (Entry)

• Price returns to the Reclaim line.
• The retest candle does not close below the reclaim line.
• The first bullish close above the line is your confirmation entry.
• Volume on retest/confirmation is flat or higher (adds conviction).

Expansion

• A clear impulsive candle follows the retest.
• Expansion shows momentum (bigger body, follow‑through candles).

Scoring and decision rule

Score each phase 0–2 (0 = fails, 1 = borderline, 2 = clean).

Total ≥10/12 → high‑probability setup; 7–9 → trade with caution; ≤6 → skip.

Entry rule: only enter on a confirmation retest close (Retest Hold) unless you accept aggressive reclaim entries.

Practical Market Education for Everyday Traders — The Stock Joe

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