For Business

Price Action

What Is a Retest

Everyone is told to wait for the retest. Almost nobody is told what it costs or what it earns. Across 217 real breaks the retest entry is right less often than chasing the break — and still makes more money per trade, for a reason you can use on every trade you take.

Difficulty
Intermediate
Reading time
8 min
Pages
9

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The skill

A retest is price breaking through a level and then coming back to touch it before carrying on. Everyone is told to wait for it. Almost nobody is told how often it happens, what the wait costs, or why it works — and the real reason turns out not to be the one in the advice.

Step one — see it on real bars

"Price comes back near the line" is not a rule; near cannot be executed. Two bars after the break, a bar whose low returns to within a tenth of a percent of the level and which still closes above it — that can.

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