Also see Variant #6
🔎 Retest Continuation Scalp
Definition
The Retest Continuation Scalp captures the principle of old resistance becoming new support. Instead of chasing the initial breakout, this setup waits for the pullback retest. If buyers defend the level and a confirmation candle prints, traders can enter with tighter risk and strong continuation odds.
Why It Works
- Structural Confirmation. Strong levels once broken are often defended.
- Volume Clues. High volume on breakout + low volume on retest = buyers in control.
- Sniper Entry. Avoids chasing and enters with precision when probability is highest.
DOM & Tape Tells
- Breakout bar = surge of aggressive orders, lifting through resistance.
- Retest = slower, lighter flow, sellers unable to press back in.
- Confirmation = buyers step in, tape regains aggression.
Trading Application
- Entry: Enter on candle confirming the retest (close above prior bar).
- Stop: Hard stop just below the turn/retest low.
- Exit:
- Half at prior pullback high.
- Half trailed with 9 EMA on 1m until stop-out.
Conditions That Improve Odds
- Level significance (premarket high, prior day high, clear range top).
- Volume surge on breakout + lighter volume on retest.
- Market/sector trending in the same direction.
Conditions That Kill the Setup
- Overextension on breakout (move > prior range height).
- Pullback too deep, breaking below level with no reclaim.
- Trading counter to bigger-picture daily trend.
Ideal Timing
- Morning: 9:59–10:44 ET.
- Midday: 10:45–1:29 ET.
- Afternoon: 1:30–4:00 ET.
Stats
- Win rate: ~50–55%.
- Reward-to-Risk: ~1.9:1.
⚖️ Bottom Line:
The Retest Continuation Scalp is the patient trader’s breakout play. Instead of chasing first touch, it confirms the level flip and joins continuation with conviction.