#AprendamosJuntos

Is it a retesting?

A retesting occurs when the price breaks an important zone (such as support or resistance) and then returns to that same zone to 'test' it again before continuing its movement.

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In the image:

1. Support zone (horizontal line):

It is an area where the price had previously bounced upwards.

2. Initial rise:

The price breaks that support zone strongly upwards.

3. Pullback (retesting):

Then it goes down again to 'touch' or test that support (which was previously resistance if coming from below).

4. Confirmation and bounce:

If the price respects that zone and bounces upwards, it is considered that the support has been confirmed and that the trend is likely to continue.

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What is it for?

• Retesting gives you a more secure entry into the market with lower risk.

• If you wait for the price to confirm that zone, you reduce the possibility of falling into a false breakout (fakeout).