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I've noticed that many beginners make the same mistake — entering a trade immediately on a breakout without waiting for a retest. But experienced traders know what it's all about.
A retest is when the price returns to the level it just broke through. It sounds simple, but it's one of the most powerful entry points. See: the price went above the level, then turned back, touching it again. This means there is serious selling pressure there, and that level will influence the price movement again and again.
The most interesting thing is — retests work everywhere. On 5-minute candles, hourly, daily. It doesn't matter what timeframe you're looking at. These levels act like magnets — they attract the price, then repel it. And every time the price approaches them, the same thing happens.
In general, there isn't a single price pattern that doesn't involve a retest. It's a fundamental part of technical analysis. But what I've noticed in practice — waiting for a retest is an art. It requires patience. Instead of jumping on every breakout, you wait for the price to return to that level. Then the probability of success is much higher.
Yes, there are traders who enter right on the breakout — and that also works. But if you want to improve your entry accuracy, learn to catch retests. It will change your trading approach.