Break & Retest: The Strategy That Separates Traders from Guessers

Break & Retest: The Strategy That Separates Traders from Guessers

May 8, 2025

Let’s talk about one of the most slept-on but ridiculously effective strategies out there: the Break and Retest.

This isn’t just some textbook nonsense — this is how smart traders get in with confidence and avoid buying tops like amateurs.

🧱 The Basics
Here’s the play:

Price breaks through a key level — support, resistance, supply, demand, whatever you call it.

Everyone and their cousin FOMO buys the breakout.

Price pulls back to that same level.

Most folks panic. We don’t.

That pullback becomes your retest entry.

🚀

This works because market structure doesn’t lie. A level that was resistance becomes support. That’s market psychology at work.

🎯 Why It Matters for Options Traders
Options are time-sensitive. You don’t get the luxury of being “early and right.” You need to be right and timely.

Break and Retest gives you:

Better entries (cheaper contracts)

Defined risk (set your stop just below the retest)

Cleaner confirmation (no guessing)

This lets you size up with confidence or scalp with sniper precision.

🔍 What It Looks Like
Imagine TSLA breaks $300 with volume. Don’t chase. Wait. It comes back down to $300, holds, gives you a little hammer candle or bullish engulfing? That’s your moment. You’re not the guy chasing green candles — you’re the guy loading when it counts.

⚠️ Rookie Mistakes
Buying the breakout with no pullback? Congrats, you bought the top.

Entering too early on the retest? Wait for confirmation — candle close, volume pickup, price stability.

Forgetting the context — higher timeframe structure always wins.

📈 Real Talk
In our live crew, we don’t just scream “TSLA to the moon.” We look for levels, we watch volume, and we wait for that clean retest. That’s how we trade with purpose — not vibes.

Want to stop guessing? Learn to love the break and retest.

By Published On: May 8, 2025Categories: Trading Strategies
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