Retest

A Retest is the return to a price level after a breakout to confirm whether the broken structure has flipped roles. A broken resistance becomes support on retest; a broken support becomes resistance on retest. The retest provides a lower-risk entry than chasing the breakout itself because the stop can be placed tightly beyond the now-flipped level.

Retests that hold on lower volume than the original breakout are strongest, they indicate that sellers (in a bullish retest) or buyers (in a bearish retest) lack conviction to reclaim the level. Retests that hold with a clear reaction candle (engulfing, hammer, pin bar) give confirmation for entry. Not all breakouts produce retests; strong trends extend directly without pullback, which is why pure retest strategies miss the fastest moves. The tradeoff is entry quality versus fill frequency, most practitioners accept fewer fills in exchange for better risk-reward.