Retest
When price returns to a broken level to confirm it now holds from the other side.
Also called: re-test · backtest of a level
In plain language
After a level breaks, price often comes back to it. Broken resistance is tested as support; broken support is tested as resistance.
A successful retest is confirmation that the break was genuine and that participants now treat the level differently.
It also offers a better entry than the breakout itself. The stop can sit just beyond the level, which is usually much closer than a stop placed after chasing.
Why it matters
Waiting for a retest trades some missed opportunities for tighter stops and clearer invalidation, which is a favorable exchange for most traders.
Common mistakes
- Waiting for a retest that never comes on the strongest moves.
- Treating any return to the level as a valid retest without watching how price behaves there.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
When price moves decisively beyond an established support or resistance level.
A price area where buying has repeatedly been strong enough to stop a decline.
A price area where selling has repeatedly been strong enough to stop an advance.
A move beyond a key level that quickly reverses back inside the prior range.
The price at which you open a position.