Easy Money Scanner

Intraday trading

What is the retest strategy after a major structural level breaks on heavy volume?

By Easy Money Scanner · Educational reference · Not investment advice

The short answer

The retest strategy involves waiting for price to break a major support or resistance level on heavy volume, then re-approach (retest) that same level from the other side before entering in the breakout's direction.

How it works

Traders typically require the retest to hold with lower volume than the original breakout and look for a bullish or bearish reversal candle at the retest zone for confirmation.

An example

If a stock breaks above $100 resistance on strong volume, then pulls back to retest $100 as support before bouncing, that retest may be used as a lower-risk entry point.

Risk & limitations

Not all breakouts retest cleanly, and when they do, the level can fail outright, turning a confirmation entry into a false signal and a quick loss.

Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

Sources & further reading