Why I Watch the Retest Instead of Chasing Price
Price breaks resistance and suddenly moves several points higher.
The temptation is to enter immediately because the move looks strong.
But what happens if the price pulls back?
I prefer to evaluate whether the breakout area holds, whether selling is absorbed, and whether buyers return.
A retest doesn't always happen, and it doesn't always succeed. I accept that I may miss some moves.
Missing a trade is usually better than entering without a plan just because price is moving fast.