Understanding Breakout Retests

A breakout retest occurs when price breaks an important level and later returns to test that area.

For example:

1. Price breaks above resistance.

2. The market moves higher.

3. Price returns toward the broken level.

4. Traders observe whether buyers defend the area.

A successful retest may provide evidence that the market is accepting higher prices.

However, some breakouts fail and return inside the previous range.

Remember: A retest is an opportunity to evaluate price acceptance, not an automatic entry.

Do you prefer entering breakouts immediately or waiting for a retest?