📚 Retest: why is it so important in trading?

When the price returns to a previously broken level, that is a retest. Personally, I believe this is the ideal moment to enter the market. Watching the price initially rise and then reverse, I understand: there is significant supply concentrated at this level, which will continue to have an impact. Each such level has weight, whether it's a five-minute, hourly, or daily chart.

Interestingly, retests most often occur in key zones – unique magnets that attract and repel price. No matter how or where the retest takes place, its characteristics remain unchanged. No pattern or figure is complete without it.

Waiting for a retest is a true school of patience. Instead of an impulsive entry on a breakout, one has to wait for a more favorable moment. However, the breakout entry strategy also has a right to exist, although personally, I find it to be less reliable.

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Warning: the material contains subjective opinions and is not financial advice. It may contain sponsored content.