Retest

Example

Say a stock closes at $21.60, above a $21.00 neckline, then drifts back to $21.10 two days later and bounces. A trader who missed the breakout might enter near $21.10 with a stop at $20.70, risking $0.40 a share instead of $0.90 from $21.60. Often, though, price never comes back, and a trader who always waits for a retest will miss some moves entirely.

Hypothetical numbers, for illustration only.