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What I Look for When Price Returns to a Breakout Level

Sachin Yadav

When price breaks above resistance and later returns to the same area, I pay attention to the reaction.

Does the level now act as support? Does selling struggle to push price below it? Or does price fall back into the old range?

A successful retest can support a continuation idea, but it isn't guaranteed.

I also define what would invalidate the setup before entering.

The purpose of the retest is to provide more information—not to promise that the breakout will continue.

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