Break → Retest → Continuation

Setup

Price moves through a published Key Zone rather than rejecting from it. Instead of assuming the break must continue immediately, the trader can observe whether price later returns to the area.

What to observe on the retest

• Does price return to the original zone after the break?
• Does the area hold from the new side, or does price move back through it?
• Does price begin separating from the zone again after the retest?
• Is the response clear enough to fit the trader's own setup and risk rules?

Continuation is only one possible outcome

A successful-looking retest does not guarantee continuation. Price can still fail, rotate back through the zone, or become choppy around the area. The retest simply adds information to the observation process.

What would weaken the continuation interpretation

• Price cannot remain on the new side of the zone
• The retest turns into sustained trade back through the area
• Repeated tests produce less separation from the zone
• The market no longer provides the confirmation required by the trader's plan

Risk considerations

Break-and-retest structures can look clean in hindsight but remain uncertain in real time. Risk should be defined independently of the visual pattern, and the trader should know what behavior would invalidate the idea before acting.