Open, High or Low Break & Retest Strategy (All Markets)

The break-and-retest setup is timeless: price breaks a key level (open, high or low), pulls back to it, and you enter on the retest. It works across forex, stocks and crypto when used with structure. Here is the method.

The Setup

1. Identify a meaningful level — today's open, a swing high/low or session high/low.
2. Wait for price to break it with momentum.
3. Wait for the pullback to 'retest' the level from the breakout side.
4. Enter on the retest with a stop beyond the level.

Rules That Improve It

• Trade in the direction of the higher timeframe trend.
• Prefer high-liquidity times.
• Confirm the retest holds (rejection) before entering.
• Target the next structural level.

Risks

False breaks and news spikes cause failures; retests sometimes break through. Use stops and modest size, and backtest on demo.

FAQ

Does this work in crypto?

Yes, with 24/7 volatility — use the same rules and tighter risk.

What if the retest fails?

Stops protect you; a failed retest often signals a pause — stand aside.

Related: Consolidation Breakouts and Optimization.