Trading
Retest
When price returns to a broken level before continuing.
Full Definition
A retest occurs when price breaks through a support or resistance level, then returns to that level before continuing in the breakout direction. Retests offer lower-risk entry opportunities as you can place stops just beyond the broken level. Not all breakouts retest, but when they do, it often confirms the level's significance.
Example
Price breaks above resistance at 1.1000. It rallies to 1.1030, then pulls back to retest 1.1000 (now support). Buying the retest offers a better entry than chasing the breakout.
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