The break and retest strategy is extremely simple to implement. To begin, you must identify a financial asset that is either in consolidation mode or in a channel. This is due to the fact that it must first break the consolidation phase before retesting it.

When a breakout occurs, it is usually a sign that the bulls or bears have won. False breakouts, on the other hand, are common at times. As a result, rather than going all-in right away, you can wait for the price to retest the previous resistance, which has now become a support level.