What it means
After a confirmed breakout, price often retraces back to retest the broken level (former resistance becoming support, or former support becoming resistance). Throwback = retest from above after an upside breakout (price comes back DOWN to retest); pullback = retest from below after a downside breakout (price comes UP to retest). Roughly 60% of confirmed breakouts include a throwback/pullback within 5-15 sessions.
Why it matters
Throwbacks and pullbacks are the highest-reward entry points for breakout strategies. Initial breakout entry has wide stop and frequent false-trigger risk; throwback retest entry has tight stop just beyond the retested level and a high-conviction signal (the level holds = breakout valid). Patient traders prefer this entry type for the better risk-reward despite missing ~40% of patterns that never retest.
How to use it
Wait for confirmed breakout (close beyond level with volume). Set buy/sell limit at the broken level for a throwback/pullback entry. Stop just past the level (1-1.5 ATR beyond). If price closes back inside the prior range, the breakout has failed — exit the trade. Target = the original measured-move from the pattern.
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