Retest Strategies

Definition

A retest strategy involves entering a trade after price breaks through a key level and then returns to test that level.The idea is to assess whether the former resistance (or support) now acts as its opposite, confirming the breakout’s validity.

Unlike a breakout strategy that acts immediately, this approach waits for price confirmation before committing.

Objective

The main objective is to avoid false breakouts by letting the market confirm the move.This allows:

• A more secure entry,

• A tighter stop loss,

• And often a better risk/reward ratio.

When It’s Used

Retest strategies are commonly used:

• after a clear breakout of a support, resistance, or moving average,

• during trending conditions, where continuation is likely,

• when price returns to a breakout zone and shows a rejection,

• by traders who prefer confirmation over speed.

What the Trader Is Looking For

• A recently broken key level,

• A return to this level without price invalidation,

• A clear price reaction (rejection wick, candle signal, tight consolidation),

• An entry in the direction of the initial breakout,

• A stop placed just beyond the retested level.

Retest vs. Pullback

In trading terms, retests are often referred to as pullbacks, but there’s a distinction:

• A pullback is a return to a broken level in the direction of the trend,

• A retest is broader, including both pullbacks and tests of major levels that weren’t broken.

On CopyTradia, we use Retest as a category to group all strategies involving price returning to a key level, whether or not it was broken.

Example Strategies

• Range breakout retest : Entry after price breaks a horizontal range and retests the broken boundary.

• Retest + RSI confirmation : Entry when RSI resets to neutral and then resumes in the breakout direction.

• Retest with candlestick signal : Entry on a strong rejection candle (e.g. pin bar, engulfing) during the test.

• Retest on EMA : Entry after price pulls back to a key EMA used as dynamic support or resistance.

Frequency in Copy Trading

Moderate to frequent

Retest strategies are widely present in copy trading, though often not labeled as such.They are commonly embedded in broader strategies (like breakouts or trend following).This type of entry suits copy trading well because:

• the execution delay is less critical,

• entries are based on more stable price zones,

• and risk management is improved.

At CopyTradia, we highlight these strategies as a structured and compatible approach for delayed or passive execution.

On the forum

This type of strategy is discussed, reviewed, and evaluated by the CopyTradia community. You’ll find user feedback, variants, and real-life examples shared by other members.

Conclusion

Retest strategies offer a balanced and disciplined way to trade breakouts

.By waiting for confirmation, traders can avoid common traps like fakeouts and gain better control over risk.This logic is particularly well suited for copy trading, where timing precision is limited and confirmation-based entries bring consistency.