📘 TRADING FROM SCRATCH – DAY 40/90

🎯 RETEST: Was the breakout really valid?

After a breakout, price sometimes returns to the zone it just broke through. This move is known as a Retest.

🟢 BULLISH SCENARIO

📈 Price breaks a resistance.

✔ Closes above.

✔ Pulls back to the former resistance.

✔ The zone attempts to act as support.

✔ A buying reaction appears.

👉 If price rises again, it can confirm a bullish continuation.

🔴 BEARISH SCENARIO

📉 Price breaks a support.

✔ Closes below.

✔ Bounces back to the former support.

✔ The zone attempts to act as resistance.

✔ A sell rejection appears.

👉 If price falls again, it can confirm a bearish continuation.

🔎 What to look for?

1️⃣ Clear breakout.

2️⃣ Return to the zone.

3️⃣ Price reaction.

4️⃣ Confirmation.

5️⃣ Risk management.

⚠️ A retest does not guarantee continuation. If price regains the broken zone, the breakout may lose validity.

💡 It’s not about entering because price returned to the zone; it’s about watching what it does when it gets there.

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