Retest
A retest is when the price returns to a level it has just broken — for example falling back to old resistance — before deciding whether to continue.
Price breaks through a level, and then — often — comes back to touch it. That return trip is the retest. Whether the level now holds from the other side tells you a lot about whether the Breakout was real.
- Category
- Price Action
- Reading time
- 4 min
- Also called
- Break and retest, Throwback, Pullback to the level
- Updated
A retest in plain words
Once a level is broken, its role tends to flip: broken support becomes resistance and broken resistance becomes support.1
A retest is the moment price comes back to that flipped level, for example recovering to just below old support that is now expected to act as resistance.1
If the level fails again, the breakout may have been false.2 See Support and Resistance.
How to read a retest, step by step
Mark the level
Identify a clear level or zone; many traders use zones rather than exact lines.2
Wait for a real break
Do not treat a tiny poke through as a break.2
Expect the role to flip
Broken resistance should now act as support, and broken support as resistance.1
Watch the return
Watch price come back to the level, as when it recovers to just below old support.1
Look for a reaction
A hold on the retest supports the breakout; a move back through it suggests a false breakout.2
Worked examples
Example 1 — Resistance becomes support
Risk defined at $1/shareResistance at $50 breaks; price runs to $54, then dips back to $50.20 and bounces.
| Entry on retest | $50.20 |
| Stop below level | $49.20 |
| Risk per share | $1.00 |
A broken resistance becomes support, so the dip to $50 is the retest that tests that flip.1
Example 2 — Support becomes resistance
Level held as resistanceSupport at $30 breaks; price falls to $27, then rallies to $29.90 and stalls.
| Retest high | $29.90 |
| Old support | $30.00 |
Once price breaks below support, that level can turn into resistance.2 Here price recovered to just below it, as in a classic retest.1
Example 3 — Failed retest
−$1.10 per sharePrice breaks $80 resistance to $81, returns to $80, then closes at $77.
| Planned entry | $80.10 |
| Stop | $79.00 |
| Loss per share | $1.10 |
The move back below the level made it a false breakout, and the stop capped the loss.2
Retest vs related ideas
| Aspect | What happens | What it tells you |
|---|---|---|
| Retest | Price returns to a broken level | Whether the role flip holds |
| Breakout | Price moves through a level | Possible new move |
| False breakout | Price breaks then returns inside | Break failed |
| Pullback | Price dips within a trend | May or may not touch a level |
How traders use retests
Better entries
Entering after a Breakout at the retested level rather than chasing.
Tighter stops
Placing stops just beyond the flipped level for a clear Risk-to-Reward Ratio.
Filtering false breaks
Waiting to see if the level holds.
Adding to positions
Scaling in when the retest holds.
Advantages and disadvantages
Advantages
- Gives a clear level for entry and stop.
- Often offers a better price than chasing the break.
- Helps filter some false breakouts.
- Works on any timeframe.
Disadvantages
- Many strong moves never retest.
- The level may be breached slightly, triggering stops.
- Deciding what counts as a touch is subjective.
- Waiting can mean missing the trade.
Going deeper
Read as far as you need. Each level builds on the one before it.
Role reversal
Beginner
A broken level changes role: support becomes resistance and resistance becomes support.1
Zones, not lines
Intermediate
Because closing slightly beyond a level may not be a real break, many traders draw zones.2 Treat the retest area as a band.
When retests fail
Advanced
Levels that have been tested several times may be remembered by market participants, but a retest can still fail and turn into a false breakout.2 Size positions so a failed retest is an affordable loss.
Common mistakes
Buying the exact line
Expecting price to touch a precise number.
Stops too tight
Placing the stop right on the level.
Always waiting
Assuming every breakout will retest.
Ignoring context
Taking a retest against the higher-timeframe trend.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A retest is a return to a just-broken level.
- Broken support becomes resistance and vice versa.
- Use zones, not exact lines.
- A failed retest can signal a false breakout.
- Always place a stop beyond the level.
Frequently asked questions
Does every breakout retest?
How close counts as a retest?
What if the retest fails?
Further learning
- Support and Resistance
The levels being retested.
- Breakout
What usually comes before a retest.
- Pullback
The broader idea of a dip within a move.
- Risk-to-Reward Ratio
How to judge a retest entry.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- CMC Markets. Support and Resistance (opens in a new tab) Checked .
- StockCharts ChartSchool. Support & Resistance (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.