What is a break and retest strategy?

This strategy involves identifying a bullish or bearish breakout, followed by a retest of the previous resistance or support, before the asset continues in its original trend. To apply the break and retest strategy, you need to wait for the price to break above or below the previous support or resistance level.

What is a breakout retest indicator?

Custom scripts and ideas shared by our users. Intro The Breakout Retest Indicator is a valuable tool utilized to confirm the occurrence of a proper breakout so you know when to enter on a retest. It analyses the price movement of an asset and identifies a breakout when the price level surpasses the inputted support and resistance values.

Is a break and retest a good forex trading strategy?

A break and retest is a good forex trading strategy that is also easy to use. It happens after the price forms a consolidation or a certain chart pattern. If you are new to the strategy, we recommend that you spend enough time practicing it in a demo account before you apply it in a real account.

How do retests work?

Retests test the strength of the breakout. If the broken level holds as new support or resistance, it confirms a genuine breakout. If it fails, the breakout is likely false and the price may reverse. The strategy uses these scenarios by entering trades at the retest with favorable risk-reward ratios.