Breakout + Retest Strategy

The Breakout + Retest Strategy is a proven price action approach used by professional traders to catch high-probability market moves after key levels are broken. This strategy aims to enter the market after confirmation — reducing false breakouts and improving entry accuracy.

🔍 Strategy Logic:
Identify a Key Support or Resistance Level

These could be recent swing highs/lows, consolidation zones, or session highs.

Wait for a Clean Breakout

Price must decisively break above resistance or below support with strong momentum.

Watch for the Retest

After the breakout, wait for the price to pull back to the broken level (now flipped support/resistance).

Enter on Retest Confirmation

Look for signs like rejection wicks, bullish/bearish engulfing candles, or strong volume on the retest.

Set Risk-Managed Stops and Targets

Stop loss goes below (for long) or above (for short) the retested level.

Target is usually set at a 1:2 or higher risk-to-reward ratio, or based on structure.

✅ Why It Works:
Filters out fake breakouts

Uses market structure and liquidity traps to your advantage

Combines both momentum and confirmation

⚙️ Best Timeframes:
15-minute to 1-hour for intraday setups

4-hour and daily for swing trades

📊 Ideal for:
Futures (NQ, ES, Gold)

Forex pairs

Crypto

Stocks near key earnings or breakout zones