How do you know when the pair you’re trading is going to retest? Help please
I see a lot of traders say “it’s retesting yesterday high” I’m confused
You dont know. You just watch the charts and hypothesise whether something will happen and if it does what am I going to do or what am I watching for. Sometimes people look for signs of reversal and sell at the previous high hoping for sellers come in like the time before.
A re-test is when price approaches a level it has reached previously but then retreated from. Often it could be a day’s high or low. For some strategies and for some TA it is significant if price can re-test a previous high or low and break through it, or if it re-tests it but fails to break through.