WHAT IS BREAKOUT → RE-TEST?

Breakout:

When the price breaks a support or resistance level that it has tested before and moves above or below that level.

Re-test:

After the breakout, the price returns to the level it broke and tests it again — this synchronization sometimes becomes a new entry point.

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HOW DOES IT WORK?

1. The price comes down to a bottom (support) or rises to a top (resistance);

2. Then it breaks this level (breakout);

3. After the breakout, the price pulls back and tests the level it broke (re-test);

4. If the level holds in the direction of the breakout, the price may continue from where it left off — this can create a new opportunity for an upward (or downward) move.

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WHY IS IT IMPORTANT?

A breakout indicates trend change or increasing momentum.

A re-test checks the validity of the broken level; a successful re-test can offer a safer entry or exit point.

It is useful in short-term, mid-term, and long-term strategies — essential for support/resistance-based analysis.

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PRACTICAL EXAMPLE

Let’s say the price has been moving below a certain resistance level for a long time.

One day, strong buying pressure breaks this resistance → this is a breakout.

After some time, the price returns and tests that same resistance (now support) → this is the re-test.

If the price confirms the level, it may be a good point for buying or taking a long position.

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