Breakout and retest is a classic price action concept used in trading (stocks, forex, crypto). Here’s the idea in simple terms: 1. Breakout Price moves strongly beyond a key level: Resistance (going up) Support (going down) This signals potential momentum. 2. Retest After the breakout, price often comes back to the same level: Old resistance becomes new support Old support becomes new resistance 3. Confirmation If the level holds during the retest, it confirms the breakout is likely valid → traders enter here.