Shallow versus deep retests
A classroom distinction that changes where stops sit and whether an idea is still alive after price returns to the broken level.
Once a level breaks cleanly, traders often treat every return as identical. In the intensive we split retests by depth.
A shallow retest tags the broken boundary and leaves quickly, often on lower volume than the break itself. Stops can sit just beyond the level with less noise — though they can still be clipped in thin lunchtime ASX tape.
A deep retest drives well into the former range before attempting to resume. Some of these recover; many become failed breakouts. We teach students to decide, before the bar prints, how deep is too deep for their plan.
Failed retests get their own column on the worksheet: price accepts back inside the range and follow-through continues against the break. Those are not “almost trades.” They are exits from the breakout thesis.