A breakout retest is when price breaks a support or resistance level, then pulls back to trade at or near that same level again before continuing in the breakout direction — the former resistance now acting as support, or vice versa.
Breakout Retest, Defined
After a breakout above resistance, a retest looks like price returning down to touch that same former-resistance level, holding there, and then resuming upward. The mirror version happens after a breakdown below support.
Why Some Traders Wait for It
Entering on the initial breakout captures a move earliest but with the least confirmation. Waiting for a retest adds confirmation — the level has now been tested twice — at the cost of later entry timing and the risk that price never comes back to retest at all. See our ORB-specific version of this comparison for a worked example in the opening-range context.
What Invalidates a Retest
If price falls back through the level instead of holding it during the retest, the retest has failed — the level didn't hold as new support (or resistance), and the setup is generally considered off. Deciding this invalidation point before entering, not after, is what makes it a usable stop rather than a moving target.
Entering on the initial break versus waiting for a retest is a tradeoff between timing and confirmation, not a right-versus-wrong choice.
See Retests Play Out
Use Chart Replay to study how often a retest actually happens after a real historical breakout.
Open Chart Replay