Trends/Gaps and breakouts

Breakout retest

After price closes above a level, it returns to that level from above.

Gaps and breakoutsBest on 3M, 6MAlso called retest, throwback, pullback

Illustration of the breakout retest shape. It is a sketch, not real price data.

What it shows

A retest happens after a breakout. Price moves back to the broken line, often within 5 to 15 bars, and touches or comes near it.

Old resistance is then acting as support (see role reversal). Edwards and Magee called a return after an upward break a pullback, and after a downward break a throwback.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find a level and a close beyond it.
Wait for price to come within 1% of the level.
Mark the touch.
Show the number of bars after the break.

Starting values: Distance within 1%; Window 5 to 15 bars. These are proposed and will be tuned on real price data before launch.

How to read it

The dashed line is the broken level.
Price rises, then drifts back to it.
The gold dot is the retest.

Status labels you may see

Label	What it means
Retesting	Price within 1% of the level after a break.
Held	Retested and closed above.
Failed	Closed back below.

What cancels it

Fails if price closes back through the level.

What traders check next

Volume on the retest.
How many bars it took.
Whether it holds.

Limits

Not every break retests.
Settings vary.
The line is a choice.

Try it in forecastviz

Open any ticker and choose Gaps and breakouts → Breakout retest in the left menu.
Switch between 3M, 6M to see how the picture changes.
Compare with Trendline break and retest and Role reversal on the same chart.

Open on a ticker

Questions

Does price always retest?

No. Many breaks never return.

Pullback or throwback?

Pullback after an upward break. Throwback after a downward break.