Method
Break and retest
Wait for a level to break, then for price to return and confirm the break.
Practitioner rule, no published test found
Widely taught. The Exchange can test it on public price history and will say what it finds.
No published test found.
What it is
The sequence is a close beyond a level, a pullback to it, and a reaction from it. Many breaks never retest, and some retests fail.
What it suggests
It trades some of the reward for a check that the break was real.
How to check it
Define what counts as a retest (how close, how long) before the trade.
Common mistakes
- Chasing the break because a retest may never come.
How we will test it
On public price history, never on anyone's account. Until it is done, the note above is all we can honestly say.
- Cases: a close beyond a swing zone
- Measure: share that retest within 20 bars, and of those the share that hold
- Window: next 20 bars
- Compared with: all breaks
Related lessons
Written in our own words. Education only, not financial advice.