Is break and retest the same as a breakout?

Break and retest is not the same as breakout. A breakout is the initial price action that breaks a key support or resistance level, while break and retest is the subsequent price movement that retests the same level as a new support or resistance level.

What is a breakout and retest strategy?

The second thing that the breakout and retest strategy does is that it helps traders confirm a new trend. When the price breaks out from a resistance level and retests it on the other side, for instance, it is a clear signifier that a new support level has formed and a new trend has begun.

What is a break & a retest?

Break: Occurs when price action closes beyond a support or resistance level. Retest: After a break, the price returns to the level it surpassed to test if it will act as the new support or resistance. Steps Involved: Identify significant support or resistance levels. Wait for a break to occur with a strong closing price beyond the level.