Candleread
7Grade 7: Price Action Lab
Technical Analysis + Price Action · Multi-Timeframe Analysis

The higher-timeframe retest entry

Identify a higher-timeframe retest entry by waiting for price to return to a broken HTF level.

3 min read+25 XPLesson 4 of 96
Start reading

Lesson path

Technical Analysis + Price Action

Multi-Timeframe Analysis

Lesson 4 of 964%
Lesson 4 of 96Technical Analysis + Price ActionMulti-Timeframe Analysis

Today's tiny win: make one idea click.

Identify a higher-timeframe retest entry by waiting for price to return to a broken HTF level.

Learn itSpot itPass the check

The market comes back to the scene

Markets break levels. Then they often come back to those levels before continuing. A breakout above resistance becomes support — and price often returns to touch that new support before moving on. That return touch is called a retest. Retest entries are popular for one big reason: they give you a cleaner risk-reward ratio than chasing the initial breakout.

Wick points at a scale that sinks on the Daily retest side, rare and once in weeks, while the 15m retest side, 50 times a day, floats up, showing bigger levels make bigger retests.DailyretestOnce in weeks15mretest50 times a day?
Wick saysA retest of a Daily level matters far more than a retest on a 15m chart.

The higher-timeframe retest is the same idea, but applied to a level you identified on the Daily or 4H. The size of the timeframe matters. A retest of a 5-minute level happens 50 times a day and means nothing. A retest of a Daily level happens once every few weeks and matters a lot. The bigger the timeframe of the broken level, the more meaningful the retest.

Walk-through. The Daily on AUD/USD breaks above resistance at 0.6700 after months of failing there. That level is now your candidate. You do not need to enter immediately. You set an alert at 0.6700 and walk away. Days later, price pulls back and tags the level. You drop to the 15m. You see a rejection wick and a bullish close. That is your retest entry. Stop goes just below the level, target goes to the next visible Daily structure.

Wick points at a practice chart with an entry line at the broken 0.6700 level, a stop placed below it and a target at the next Daily high, showing room for a retest that does not hold.AUD/USD retestPractice chartNext highEntry 0.6700Stop below
Wick saysPut the stop just below the retest level, not right on it, since some retests fail.

Two warnings. First, not every retest holds. Some break right through, which is why your stop is below the level, not at it. Second, do not invent retests. The level had to be a visible, meaningful HTF level before the break — not a line you drew because price stopped there once last Tuesday.

Wick shows a green card saying use a level that was clear before the break and a coral card saying do not draw a line from one stop last Tuesday, teaching not to invent retest levels.Do thisUse a level clearbefore the breakNot thisDraw a line fromone stop lastTuesday
Wick saysOnly trust a retest of a level that was clear on the big chart before the break.

Recap: HTF retest = wait for price to return to a broken HTF level, then take an LTF trigger in the direction of the original break.

Knowledge check

Answer before moving on.

0 / 3 answered

1. What makes a retest of a Daily level more meaningful than a retest of a 15m level?

2. After the Daily breaks 0.6700 resistance on AUD/USD and pulls back to tag it, what is the best next step?

3. Why should the stop on a retest entry go beyond the level, not at it?

Lesson handoff

Pass the check before saving.

Use the knowledge check first. After you pass it, this card turns into the save-and-continue handoff.

Preview mode is on. This lesson stays available for browsing, and your saved resume point will not move until you open the required lesson from the track map.