// Definition
A retest is when price comes back to a level it has just broken, to test whether that level now holds from the other side.
Explained simply
After a breakout, price often pulls back to the level it broke. If old resistance now holds as support (or old support holds as resistance), the breakout is confirmed.
Many traders prefer to enter on the retest rather than on the breakout candle itself, because the stop-loss can sit just beyond the level.
Tip
Not every breakout gets a retest. If you only trade retests you will miss some moves, but the ones you take are usually cleaner.
Learn it on a real chart · EP 02Support & Resistance: How to Draw ThemWatch the free lesson →
For education only, not financial advice. Trading is risky and you can lose money.