I’ve been studing forex on-off since October and I’ve recently been doing the BabyPips school, and there’s one thing, that seems to be obvious, that I can’t get my head round. The retest.
I originally thought that it was when price hit support (or res) came back up and then tested it again. I’ve thought it was this for so long that it’s burnt into my psyche. I then came across this tutorial (below) and it sent my mind into a spin.
Could someone pleeese explain to me what a retest is?? It would also be handy if you could show me where it is on this graph:
Tutorial:
Ok, so I can’t put the link in because this is my first post but you can see it if you go to the BabyPips School and then add [I]playing-the-breaks-with-pivot-points.html[/I] to the end.
A break of support, or resistance is sometimes followed by a return of price to that point.
Pretend the E/U had been stuck in a 100 pip range, from 1.32 to 1.33. And it broke out above that. Say it went to 1.3450, then returned to 1.33, or very close to it, only to rocket back up past 1.3450 to 1.35+.
It’s much clearer now after your explanation, thanks.
If you don’t mind, I have one more question. Using your example, should I also assume that when it returned to 1.33, if broke through, that would [B]not [/B]be a retest?
