Breakout retests are a classic pattern in technical analysis, mastering it can significantly improve your trading success rate.

In practical trading, this logic can be applied across four different market environments. In an uptrend, when the price breaks through a key resistance level and then pulls back to the support level, this is the most ideal low-risk entry point. During trend reversal phases, breakouts are often accompanied by increased volume, and only after a retest confirmation is the true trend change confirmed. Be more cautious with breakouts within consolidation zones—false breakouts occur frequently, and only when the price stabilizes at a key level can you trust the signal. Conversely, in a downtrend, a second decline after confirming resistance at a rebound high often provides a good shorting opportunity.

Within each breakout retest pattern, two critical points are hidden: one is your entry point, and the other is your stop-loss point. Entry should wait for retest confirmation, and stop-loss must be set at the opposite side of the failed breakout to control risk.

Many traders overlook the details of breakout retests, resulting in repeated shakeouts in choppy markets. Using this tool correctly, combined with reasonable position management, can help seize key opportunities in volatile assets like Bitcoin and Ethereum. Of course, trading always involves risks; these methods are for educational reference only. Actual trading strategies should be adjusted according to your risk tolerance.