Breakout & Retest

LONG

The tell: Break a well-tested level, pull back to that exact level, hold it, go.

What it looks like: Price chops beneath a well-tested ceiling, breaks through on volume, then pulls back to that same level — and holds it as new support.
Why it works: The old ceiling becomes a floor: breakout buyers defend their entries and trapped shorts cover into the retest.
Entry: The first higher low after the retest holds — not the initial breakout candle.
Stop: Just below the retested level.
Target: Level plus the height of the prior range.
How it fails: Retest slices back through and closes below the level — failed breakout, often a fade the other way.

Reading it in a textbook is not the same as spotting it live. Drill the breakout & retest on charts generated fresh every time, or try today’s five.