After a breakout, price pulls back to the broken level, which flips from resistance to support (or vice versa). This offers a lower-risk entry than chasing the break.
How to identify it
- Clean breakout through a key level
- Pullback returns to touch the level
- Level holds with a rejection candle
Entry
Enter on the rejection candle at the retested level.
Stop loss
Just beyond the level on the wrong side.
Target
The breakout high/low and the measured move beyond.
Invalidation
Price closes back through the level.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your breakout retest trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.