Breakout-Retest Playbook

Learn Breakout-Retest Playbook — part of our Strategy Playbooks series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

· 3 min read

Break, pause, continue

Stronger than blind breakout (Module 7): price breaks resistance, retests it as support, then continues.

  1. Range or level identified.
  2. Close beyond level with volume pick-up.
  3. Pullback holds above old resistance (new support).
  4. Entry on bullish reaction; stop below retest low.
Retest

Fakeouts fail retest — stop should be tight but beyond invalidation.