Break and retest strategy

The break and retest is one of the most common price action strategies in forex, and it has its own module in the Kroxier course.

How it works

1. Identify a key level: support, resistance or a range boundary.
2. Wait for a clean break of that level, ideally with a strong candle close.
3. Wait for the retest: price comes back to the broken level, which now acts in the opposite role.
4. Enter on confirmation at the retest, with a stop beyond the level and a target based on risk.

Common mistakes

• Entering on the break instead of waiting for the retest
• Trading weak levels
• Ignoring the higher-timeframe trend

Keep reading