Breakout and retest
Break first, then retest. Waiting for the retest filters many false breakouts.
What it is
A breakout is a decisive close beyond a level. Many breakouts fail, so patient traders wait for a retest: price returns to the broken level and holds it from the other side. That gives a tight stop (just beyond the level) and a logical entry.
Strong breakouts come with volume and a close well beyond the level; weak ones barely clear it and stall.
How to use it
- Mark the level and wait for a clear close beyond it.
- Look for rising volume on the break.
- Wait for the retest; enter on a rejection candle or a lower-timeframe structure shift.
- Stop on the far side of the level; target the next zone.
Let price prove the level before you commit.
Common mistakes
- Chasing the first breakout candle.
- Entering at the retest without confirmation (it may fail).
- Ignoring that a deep return through the level cancels the setup.
Practise it in TradeDesk X
The Scanner marks setups ARMED while waiting for a trigger, and EXECUTE when all checks are ready. That is the same “wait for the retest” discipline built in.
Related lessons
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Support and resistance
Prices react at the same zones repeatedly. A broken level often flips its role.
♟Playbook: trend pullback
Join an established trend on a shallow pullback to value.
Educational content only. Nothing here is financial advice or a recommendation to buy or sell anything. Trading leveraged products can lose more than you deposit. Practise with paper trading first and never risk money you cannot afford to lose.