What does Retest mean?
A retest occurs when price breaks a level and later returns toward the same area. Traders study whether the former boundary now behaves differently, for example former resistance acting as support after an upside breakout.
Why it matters
- A retest can provide information about whether a breakout is being accepted.
- It can distinguish a sustained structural change from a brief breakout.
- Some traders prefer observing a retest rather than chasing the initial move.
How it works
- 01
A visible level is broken.
- 02
Price moves away from it.
- 03
The market returns toward the broken area and either holds or fails.
Example
Price breaks above a range high at 20,100, moves higher and later returns to 20,100. If the area holds and price forms higher structure, traders may describe that as a successful retest.
Common misunderstandings
- Not every breakout produces a retest.
- A retest can fail.
- The market may test a zone rather than one exact price.
Educational reference
This glossary explains terminology and
general market concepts. It is not a
trading signal or a guarantee of future
results.