I've noticed that many beginners don't understand what a retest is, and this seriously affects their trading. The fact is, when the price breaks through an important level, it rarely continues straight away. Usually, it retraces back to that level, and this retracement is exactly what is called a retest.

Why is this so important? Because a retest is an ideal entry point. When the price returns to the broken level, you see how strong that level really is. If the price goes up, then reverses and comes back to the level, it indicates there is serious supply or demand there. Such zones act like magnets—they attract the price again and again.

An important point: retests work on all timeframes. It doesn't matter whether you're looking at a five-minute chart, an hourly, or a daily chart—the characteristics of a retest remain the same. Every significant level matters, and each such level will influence the price if it approaches.

There's an interesting pattern: almost no pattern or figure exists that isn't associated with a retest. It is a universal tool in technical analysis.

Waiting for a retest teaches patience. Instead of immediately opening a position on a breakout, you wait for a more favorable opportunity. Yes, a breakout entry strategy also has its merits, but a retest provides better risk management and a more advantageous entry point. Try applying this approach—your results may surprise you.