Technical Glossary / Support, Resistance & Price Levels
Retest
A return to a level that just broke, to see if the level holds from the other side.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A retest is price coming back to a breakout or breakdown level. The question is whether old resistance acts as new support, or old support as new resistance. It is the practical form of role reversal, looked at as an entry rather than as a theory.
How to identify it
A completed break, then a pullback that touches or slightly pierces the broken level, then a close back in the direction of the break. No pullback means no retest. You do not get to rename a later, unrelated visit.
Bullish reading
After an upside break, a retest that holds is a long with a defined risk under the level. If the retest never comes, the cost of waiting is a missed trade. That cost is real.
Bearish reading
After a downside break, a retest that fails is a short with risk above the level. A retest that closes back through the level is not a short. It is a failed breakdown.
Common mistakes
Chasing the break and also claiming you are trading the retest. They are different prices and different risks. Also calling every pullback a retest of a level it did not touch.
Limitations
Strong breaks often do not retest. Weak breaks retest and fail. Waiting for a retest filters some false breaks and skips some of the best trends. Pick the compromise on purpose.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.