LEARN
Breakout and Retest: The Second Entry | Borearis
A breakout is a close beyond a level; the retest is the pullback that follows. The retest often gives the cleaner entry.
Why wait for the retest
Chasing the breakout puts the stop under the whole range. The retest lets you risk a much smaller distance and confirms the level now acts from the other side.
What makes it valid
- The breakout candle closes beyond the level.
- The pullback holds above (or below) the level.
- A close back inside invalidates the idea.
How to trade it
Enter on the hold, stop beyond the retest low, target the next level. Use the position size calculator with that tighter stop.
What if there is no retest?
Then there is no trade; chasing is a different, worse-probability setup.
How long should the retest take?
Usually within a few candles; a long drift back inside weakens the setup.
Educational content only, not investment advice.