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Goal of This Lesson:
To help beginners understand how the Break and Retest pattern works, why traders wait for confirmation instead of chasing price, and how this simple repetitive setup can help identify potential trend continuation in the market.
In my experience, finding a reliable strategy feels overwhelming. However, you can simplify your approach completely by mastering the break and retest pattern. It really works.
How to Understand Break & Retest?
A Break and Retest Pattern is when price breaks an important support or resistance level, then comes back to test that same area before continuing in the breakout direction.
Traders tend to use this repetitive setup because it gives better confirmation and helps avoid entering the trade too early.
The Breakout: The market pushes hard through a known support or resistance level
- Resistance → broken = potential bullish shift
- Support → broken = potential bearish shift
Retest/ The Pullback: It turns around to revisit that exact price zone
- Old resistance → becomes new support
- Old support → becomes new resistance
Continuation If the level or the zone holds, price continues in the breakout direction
How Does the This Pattern Look on AUD/CAD?
Weekly Chart
On the weekly AUD/CAD chart, the trend is still strongly bullish. Price is consistently making higher highs and higher lows, showing continued upside momentum.
Price has already broken a key resistance level and is now retesting it as support. This is a normal move in an uptrend and often acts as a pause before continuation.
Simple view on the weekly chart:
- AUD/CAD is in a strong bullish trend with higher highs and higher lows.
- Price has completed a break and retest of a key resistance level.
- That resistance has now turned into support.
- Price is currently reacting at this support zone, showing buyer interest.
- If support holds, the uptrend may continue.
Overall, the weekly chart remains bullish, and price is still favoring further upside as long as support holds.
Daily Chart
On the daily AUD/CAD chart, the trend is still bullish. Price is moving upward and recently broke a strong resistance level.
Now, price is pulling back to that same level, which has turned into support, this is called a retest. If this support holds, buyers may step in again and push price higher.
Simple view on the daily chart:
- Trend is still up
- Resistance has turned into support
- Price is retesting that support
- If it holds, price can continue going up
How the Current AUD/CAD Price Action After the Break and Retest?
Price has already been retesting and already done the break and currently it is retesting, and after it massive surge of bullish momentum happened. This is not a coincidence =, this is simple repetitive patter than always happening in the markets.
Daily Chart Observations:
- Right after the retest of the previous resistance acting as a support price tend to have massive rally to the upside.
Final Take
Sometimes trading doesn’t need to be complicated.
The Break and Retest pattern?
One of the simplest patterns the market shows before the next big move.
Instead of chasing price, patient traders wait for the exact pattern…
Letting the market come to them!
Then ride the momentum once the exact confirmation of the pattern happened.
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Check Out My Contents:
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- Beginner Trading Steps: 4 Rules to Follow Before You Trade
- The 1% Risk Rule: The Most Common Mistakes That Quietly Destroys 90% of Traders
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Mastering Traders Mindset
Your mindset is what separates steady growth from costly mistakes. Focus on these essentials:
- Trading Mindset: Why Trading Exposes Who you Really Are?
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Beginner Trading Roadmap
Not sure where to begin? Here’s a simple roadmap to guide you:
- Common beginner Traders Mistakes → avoid overtrading, revenge trading, and chasing the market.
- Master Traders Psychology → build discipline, patience, and emotional control
- Mastering Risk Management → learn how to have a sustainable trading.
- Master Simple Technical strategies & Indicators → especially price action, key levels, and market structure.
- Applying to Real Market → forex, crypto and indices.
By building step by step; from basics → real trading → mastering the craft, you’ll gain clarity, confidence, and steady progress without ever feeling overwhelmed.
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Disclaimer:
Trading forex and derivative instruments involves substantial risk and may not be suitable for all individuals. Only use funds that you are prepared to lose. It is important to understand how these markets work and the risks involved before trading, and to seek independent financial advice if needed. All market analysis and insights shared are intended for educational and informational purposes only and should not be considered financial or investment advice. May 5, 2026
