Throwback
A post-breakout pullback to the broken resistance level, which now acts as new support — a common re-entry opportunity in trending markets.
A Throwback occurs after a bullish breakout: price breaks above resistance, advances briefly, then pulls back to re-test the former resistance level now acting as support. The flip of resistance to support is the core principle behind throwbacks.
Throwbacks offer cleaner entries than chasing the initial breakout candle. A hold above the prior resistance on the pullback, confirmed by lighter volume on the dip and expansion on the next advance, validates the support flip.
- The bearish equivalent (a throwback below support after a breakdown) is called a pullback or dead-cat bounce.
- Throwbacks occur in roughly 60%+ of valid breakouts.
Example
Stock breaks above a 6-month resistance at $75 on heavy volume, reaches $79, then drifts back to $75 on light volume over three days. Holding $75 on the close is a throwback buy entry with a stop just below $74.
Related Terms
Ascending Triangle
A coiling pattern with a flat upper resistance line and rising lower trendline, typically resolving in a bullish breakout.
BeginnerBreakout Retest
Price returning to test the former breakout level after the initial break — a resistance-turned-support confirmation and lower-risk entry point.
BeginnerBull Flag
A sharp upward pole followed by a tight, slightly downward-drifting consolidation channel — a high-probability continuation setup in strong uptrends.
BeginnerCorrective Wave
A counter-trend three-wave (A-B-C) structure within Elliott Wave Theory that retraces part of the prior impulse before the trend resumes.
AdvancedDescending Triangle
A coiling pattern with flat lower support and a declining upper trendline, typically resolving in a bearish breakdown.
BeginnerFalse Breakout
A breakout that fails: price pushes past a key level, fails to follow through, then snaps back inside the range — trapping breakout traders.
IntermediateHead and Shoulders
A three-peak reversal pattern where the middle peak (head) is tallest, flanked by two shorter peaks (shoulders), signalling a trend top.
BeginnerMeasured Move
A technique projecting a price target by duplicating a prior swing move from a breakout or consolidation point.
BeginnerNeckline
The support or resistance level connecting the lows (or highs) of a reversal pattern — the line whose break confirms the pattern.
BeginnerRising Wedge
Two converging upward-sloping trendlines where the lower line rises faster — a bearish pattern signalling that upside momentum is exhausting.
Intermediate