Retest
A retest is price coming back to a level it just broke through, to see whether the level now holds from the other side. It is usually the safer place to enter.
In depth
Resistance sits at 102. A candle closes at 102.40 and the level is broken. Chasing that candle puts your entry a long way above your stop, which sits below 102, so the trade needs a big move just to pay two to one. Wait instead. Price often comes back to 102.
Then the level answers for you. If price touches 102 and turns back up, the old resistance is acting as support and you enter near it with a tight stop. If a candle closes back below 102, the break failed and there is no trade. The retest matters more the lower your timeframe, because low timeframe breaks fail often.
Why it matters
Entering on the breakout candle is the classic way to be right about direction and still lose. Your entry is too far from the stop, so ordinary noise takes you out of a trade that works without you. Waiting for the retest costs you the occasional runaway move and saves you a long list of those stops.
Trade replay puts your fills on a TradingView chart, which is where a chased entry looks obvious. Tag your chased entries and your retest entries, then read the By tag table: it compares win rate and average winner for each label.
Frequently asked questions
No. Strong moves sometimes run without coming back, which is the cost of waiting for the safer entry.
A candle closing back through the level. The break failed, so there is no trade.
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