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What is a breakout retest?

A breakout retest refers to price breaking through a level of support or resistance, like in the above example, then price returning to the level that was previously broken. In a bullish breakout through resistance, the previous resistance now acts as support. In a bearish breakout through support, the previous support will act as resistance.

What happens if a retest is a bullish breakout?

In a bullish breakout through resistance, the previous resistance now acts as support. In a bearish breakout through support, the previous support will act as resistance. Below we have a bullish breakout example including a retest.

What is a breakout strategy & how does it work?

The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout strategy, know when to cut your losses and re-assess the situation if the breakout sputters.

When should we expect a resistance breakout & a support breakout?

If there is an uptrend, we should expect a resistance breakout. If there is a downtrend, we should expect a support breakout. As soon as the price makes a real break through the target level, we open a trade: in case of a resistance breakout, we buy a currency pair; in case of a support breakout, we sell it.

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