CHARTTHREAD

Retest

A retest is a return of price to a level it has already touched. A near retest (within about 10 days, with a shallow pullback) favours a breakout; a distant retest (more than a month later) favours a bounce.

The shallower the pullback between the touches, the stronger the big player behind the move. The strongest near retests come back to the level within three candles, or with a gap.

Learn more: pillar three, direction and retests: why the second touch tells the truth.