Retest Trades

The retest trade is a simple bounce trade type strategy that uses theTutorial Magnifying Glass combination of key support and resistance levels with quality price action to create powerful trading setups.

Once price has broken through a key level, look to see whether it retraces back towards that level. Very often once price has broken through prior resistance, that level then becomes new support and vice versa. This new support or resistance level can then provide the backstop or springboard for further price movement back in the direction of the dominant trend.

Like all trade setups, the best results come when trading in the direction of a well established trend and where price is not over-extended from its moving averages.

Check out the video below for further explanation.

6 thoughts on Retest Trades

  1. Thanks and lastly what do you think of Fib especially 1.618 or what do you use?

    Many thanks again for your knowledge and help.

    Byron

    1. Have never used Fib myself. Keep it simple. Trading is challenging enough without adding even more to think about!

  2. Hi Nick

    Great website, thanks for your advice, do you ever use pivot points and if so which one?

    Regards

    Byron

    1. Thanks Byron!

      Not so much to be honest, but if i do its with forex trading and then only to see where there is confluence between daily pivot levels (P, S1 & R1) and classic support and resistance levels to add weight to any bounce setup.

      Nick

      1. Thanks so would you say pivot points are not an accurate way to trade forex, would you rather stick to moving averages and resistance and support levels?

        Regards

        Byron

        1. I would say that if it works for you then don’t change it, but personally i find simple support and resistance are the keys to the trading kingdom. Often pivots work best when they already line up with an obvious support level in my experience?!

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