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  3. Break and Retest

Break and Retest

A break and retest is a conditional setup that waits for price to cross a chart area and then revisit it before considering entry.

Defined termReviewed 16 July 2026

Related terms

BreakoutResistanceSupportTrading PlanSwing TradingTechnical Analysis

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure
Trading glossaryReviewed 16 July 2026

Definition

A break and retest is a conditional setup that waits for price to cross a chart area and then revisit it before considering entry.

In market context

The approach treats the revisit as new evidence about whether former support or resistance has changed role, rather than assuming every breakout will continue. A valid process must define the boundary, acceptable retest zone, confirmation, invalidation, and maximum waiting period before observing the outcome. Price may never return, may pass directly through the area, or may create a false confirmation before reversing.

Source

Use the primary source for fuller regulatory or market context.

CME Group Education — Trend and Continuation Patterns

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure

Related glossary terms

Selected from explicit term relationships and shared tags.

beginner3 min

Breakout

A breakout is a price move beyond a previously observed support, resistance, range, or chart-pattern boundary, often considered alongside trading volume.

technical-analysis · strategyRead guide
beginner3 min

Resistance

Resistance is a chart area where prior selling or reduced buying has repeatedly slowed or reversed upward price movement within the selected timeframe.

technical-analysis · chartsRead guide
beginner3 min

Support

Support is a chart area where prior buying or reduced selling has repeatedly slowed or reversed downward price movement within the selected timeframe.

technical-analysis · chartsRead guide
beginner3 min

Trading Plan

A trading plan is a written decision framework defining eligible setups, risk limits, execution rules, review methods, and conditions for not trading.

strategy · psychologyRead guide