A retest is when price returns to a level it previously broke, to probe whether the old role still holds or has flipped. After support breaks, a retest tests whether the old support now acts as resistance; after resistance breaks, it tests whether the old ceiling now acts as support.
How it works
When a zone breaks on consecutive closes, its role can flip. The retest is the first return to that zone, where buyers or sellers get a second chance at the level.
A successful retest shows the flip is real: price reacts at the old level and continues in the direction of the break. A failed retest means the level simply no longer matters.
Why it matters
The retest gives traders a defined entry: a place with a clear stop and a favorable reward-to-risk setup, because the level has already shown it matters.
It also distinguishes a real break from a fake one. A breakout that comes straight back through the level without a clean retest is weaker evidence.
A simple market example
Resistance at $100 breaks on heavy volume and price rallies to $110. Price then pulls back to $100.50. Traders watch whether $100 now acts as support: if price reacts and rises, the retest confirms the flip; if it drops straight through, the break was false.
Common mistakes
Assuming every retest will hold. A retest can fail, which means the level has lost its significance.
Buying the retest before seeing reaction evidence, treating the old level as a guarantee instead of a probability.
Frequently asked questions
Is a retest the same as a breakout pullback?
They overlap in practice: after a breakout, the pullback to the old level is the retest of the broken zone.
What confirms a retest?
Reaction evidence at the level: candle closes holding on the correct side, deceleration, or a reversal signal, plus the direction of the break.
Can a retest fail?
Yes. A failed retest means the level no longer controls price, and the original break may have been a false move.
Educational content only. Definitions describe common market usage and may vary by jurisdiction, instrument, or institution.