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S/R Flip Retest

Pro

Trade Retests of Broken S/R Levels

5m Entry
15m Setup
Structure
Retest

📊At a Glance

Best For

Clear breakouts with strong conviction candles

Timeframes

15m level detection / 5m trigger

Typical Hold

30 min - 4 hours

Primary Targets

  • •Measured move (break candle size)
  • •2R extension
  • •Prior structure level

Common Failure Mode

Late retest — market forgets the level after 8+ bars

When to Avoid

  • •Choppy range-bound markets
  • •Weak break candles
  • •Multiple failed retests

The Concept

When a key support or resistance level is broken, it often "flips" its role. Former resistance becomes support, and former support becomes resistance. This strategy waits for price to return to the broken level and enter when a rejection candle confirms the flip.

Key Insight: The most reliable S/R flip trades occur when the break candle shows conviction (strong body, high volume) and the retest happens quickly (within 12 bars). Late retests often fail as market memory fades.

Long Setup (Broken Resistance Becomes Support)

Resistance Flip to Support

Price breaks above a range high with a strong candle, pulls back to the level, shows rejection wick, and resumes higher.

Flipped LevelStop LossT1 (Measured Move)BREAKRETESTENTRY

Short Setup (Broken Support Becomes Resistance)

Support Flip to Resistance

Price breaks below a range low with a strong candle, rallies back to the level, shows rejection wick, and continues lower.

Flipped LevelStop LossT1 (Measured Move)BREAKRETESTENTRY

Level Detection

level = range_high or range_low (30-bar lookback on 15m)

Identify significant horizontal levels from recent price action on the 15m timeframe.

Break Confirmation

break_candle.body_pct >= 55% AND close > level + buffer

A valid break requires a strong body candle closing beyond the level with a buffer.

Retest Proximity

distance_to_level <= 0.3 × ATR(14)

Price must return within 0.3 ATR of the level to arm the signal.

Rejection Confirmation

rejection_wick >= 35% of candle range

The retest candle must show a rejection wick of at least 35% to confirm the flip.

Setup Detection (15m)

  • Level identification— Range high/low over 30 bars
  • Break candle— Body > 55%, close beyond level
  • Retest deadline— Within 12 bars after break
  • Quick retest bonus— Return within 4 bars scores higher

Trigger & Targets (5m)

  • Long trigger— Rejection wick below level, close above
  • Short trigger— Rejection wick above level, close below
  • Target 1— Measured move (break candle size)
  • Target 2— 2R or prior structure level

When It Works

Clear breakouts with strong candle bodies. Quick retests (within 4 bars). Higher timeframe trend alignment with the direction of the break.

Watch Out For

Late retests after 8+ bars. Weak break candles with small bodies. Multiple failed retests of the same level.

Avoid When

Choppy, range-bound markets. When the break occurred during news or off-hours. If the level has been tested multiple times already.

Why S/R Levels Flip

The flip phenomenon is rooted in market psychology and order flow:

Resistance Becomes Support

  1. Traders who shorted at resistance are now underwater
  2. When price returns, they cover (buy) to limit losses
  3. New longs use the level as a "value zone" to enter
  4. Combined buying pressure creates support

Support Becomes Resistance

  1. Traders who bought at support are now underwater
  2. When price returns, they sell to get out at breakeven
  3. New shorts use the level to fade the rally
  4. Combined selling pressure creates resistance

See an Example Signal

Here's what a real S/R Flip Retest signal looks like in the app:

Sample Signal
NZDUSD
S/R Flip Retest
LONG
5M
Retested broken resistance as support
Why this signal was detected
Entry Zone
0.5920-0.5930
1
Stop Loss
0.5895
2
Targets
0.5975 / 0.6010
3
R:R
1:1.7 / 1:2.8
4
Quality: 74
(High)
Clean structure flipConfluence with EMA50London session
Each signal includes:Entry zone,Stop loss,Take profit targets, andRisk:Reward ratio
1
Entry Zone
Optimal price range for entry
2
Stop Loss
Invalidation level to exit if wrong
3
Take Profit
Target levels for profit taking
4
R:R Ratio
Risk-to-reward calculation
Score: 74 (High)

Quality score is calculated from regime alignment, structure quality, timing, and technical confluence. Higher scores indicate stronger setups.

Quality Scoring Factors

The signal quality score (0-100) is composed of several factors:

Setup Quality (0-40 points)

  • Break candle body percentage (55-70%+)
  • Quick retest (within 4 bars = +6 points)
  • Strong rejection wick (40-50%+)

Regime Alignment (0-20 points)

  • 1H trend aligned with direction (+5 points)
  • 4H trend aligned with direction (+5 points)
  • Counter-trend signals score lower

Invalidation & Risk Management

Stop Loss Placement

  • Long: Level - buffer - 0.3 ATR
  • Short: Level + buffer + 0.3 ATR

Buffer = max(spread x 2, ATR x 0.05) to avoid noise

Signal Cancellation

  • Two consecutive closes on wrong side of level
  • Retest deadline exceeded (12 bars after break)
  • No rejection confirmation on retest