Trading glossary
What is a retest?
A retest is a return to a level price has just broken, to see whether it now holds from the other side.
After a breakout, price often comes back to the broken level. If old resistance now acts as support, or old support as resistance, the retest is said to hold and the breakout is treated as confirmed.
Not every breakout retests. Strong moves can leave the level behind, so waiting for a retest means some trades are missed.
How traders use it
- Watch how price reacts at the level, not just whether it touches it.
- A close back through the level on the retest is a sign the breakout has failed.
- Many traders place invalidation just beyond the retested level.
Example
Bitcoin breaks above 70,000, rallies to 73,000, then pulls back. It touches 70,200, prints a hammer and closes higher. The old resistance at 70,000 has held as support on the retest.
Frequently asked questions
How often do breakouts retest?
Often enough that many traders plan for it, but there is no fixed rate. It varies by market, timeframe and how strong the breakout was.
What is a successful retest?
Price returns to the broken level, reacts in the direction of the breakout and closes on the right side of it.
Related terms
Related patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.