Breakout Retest
Price returning to test the former breakout level after the initial break — a resistance-turned-support confirmation and lower-risk entry point.
A Breakout Retest happens when, after breaking through a key resistance (or support) level, price returns to re-test that level before continuing in the breakout direction. The break converts resistance to support (or vice versa for a breakdown).
The retest provides: (1) confirmation that the breakout is valid — the level is holding, and (2) a better risk/reward entry than chasing the initial break. Stops go just below the retested level.
- Volume clues: light on the retest pullback, heavy on the resumption of the breakout direction.
- A retest that fails (price closes back inside the prior range) negates the breakout — honor your stop.
Example
Bitcoin breaks above $70,000 resistance on high volume, rallies to $74,000, then pulls back to $70,200 on declining volume. A bounce from $70,200 with bullish candles on the next day is the retest entry, stop at $69,500.
Related Terms
Ascending Triangle
A coiling pattern with a flat upper resistance line and rising lower trendline, typically resolving in a bullish breakout.
BeginnerBull Flag
A sharp upward pole followed by a tight, slightly downward-drifting consolidation channel — a high-probability continuation setup in strong uptrends.
BeginnerContinuation Pattern
Any pattern that forms mid-trend and resolves in the same direction as the prior move — flags, pennants, and triangles are the most common.
BeginnerCup and Handle
A rounded bowl-shaped base followed by a small downward drift (the handle) — a bullish continuation pattern preceding a breakout to new highs.
IntermediateDescending Triangle
A coiling pattern with flat lower support and a declining upper trendline, typically resolving in a bearish breakdown.
BeginnerFalling Wedge
Two converging downward-sloping trendlines where the upper line falls faster — a bullish pattern indicating downside momentum is fading.
IntermediateFalse Breakout
A breakout that fails: price pushes past a key level, fails to follow through, then snaps back inside the range — trapping breakout traders.
IntermediateInverse Head and Shoulders
A three-trough reversal pattern at a downtrend bottom: the middle trough is deepest, flanked by two shallower troughs, signalling a trend floor.
BeginnerNeckline
The support or resistance level connecting the lows (or highs) of a reversal pattern — the line whose break confirms the pattern.
BeginnerRectangle Pattern
Price oscillates between two horizontal parallel levels — a neutral consolidation that resolves in either direction, often continuing the prior trend.
BeginnerSymmetrical Triangle
Converging trendlines with lower highs and higher lows, signalling a coil of indecision that typically breaks in the direction of the prior trend.
BeginnerThrowback
A post-breakout pullback to the broken resistance level, which now acts as new support — a common re-entry opportunity in trending markets.
Beginner