The breakout and the retest
When price finally breaks through a ceiling, the old ceiling often becomes the new floor. The retest is where patient traders strike.
Key takeaways
- A breakout is price closing decisively through a key level.
- After breaking out, price often comes back to test the level from the other side.
- Old resistance can become new support: the retest is a high-quality entry zone.
Price breaks above resistance, then pulls back to it. What is that pullback called?
Transcript
Every level breaks eventually. And when it does, something almost magical happens. The ceiling that held price down for weeks... turns into the floor that holds it up.
Watch. Price hits the ceiling once, and gets rejected. Twice, rejected again. Then the buyers break through with a big, confident candle. But here's the move most people miss. Price comes back to retest the old ceiling, from above. It holds as a floor... and off it goes.
Here's the cheat code. Don't chase the breakout candle. Wait for the retest. You get a better price, a clearer place for your stop, and a much calmer trade.
Remember. A breakout is price closing through a level. The retest is price coming back to check it. And the old ceiling becomes the new floor.
Take the quick check below to lock it in. One more skill in your toolkit. Next up: Where the stops hide. Learn it. Practise it. Prove it.