What Is a Retest?

Why do traders watch retests after breakouts?

A retest occurs when price returns toward a level it previously broke through.

For example, NQ breaks above resistance and later pulls back toward that area.

Some traders watch to see whether the former resistance acts as support.

However, the level doesn't have to hold.

Price may reject the retest and continue higher, or it may fall back into the previous range.

I would observe the price response, the broader structure, and any relevant order flow evidence before considering an entry.

A retest creates an opportunity to evaluate the breakout.

It doesn't guarantee that the breakout will succeed.