The Truth About 2nd Retests in Forex, Stocks, and Crypto

107
"Structure protects the trader from their own emotions."

This post is for those traders out there who have been second-guessing themselves when the market pulls back. If you're noticing second retests more frequently in Forex compared to stocks and crypto, you're not imagining things. Let me break it down from experience and research.

🔄 2nd Retests: What Are They?

The "2nd retest" refers to when price:

Breaks through a key level

Pulls back to that level

Then comes back again to retest that zone before the real trend unfolds

💱 Forex: Where Retests Move Fast

Forex has high liquidity and volume. When a level is broken, you often get a quick pullback, then a second retest -- sometimes in the same session. It's common to catch a good entry, see profit, then watch price reverse, hit the zone again, and consolidate with a W or M formation.

This is where most traders start to doubt themselves.
But if you're reading structure and candles properly, you're not wrong -- you're just early.

Remember: Forex is designed to shake you out with speed.

📊 Stocks: Slower and Sentiment-Driven

Stocks don’t move like Forex. They’re based more on fundamentals, earnings, and market sentiment.

2nd retests happen, but they play out over days or weeks

You often see consolidation ranges instead of clean pullback entries

That means unless you’re patient or watching higher time frames, you’ll miss it or get caught in sideways chop.

💿 Crypto: The Middle Ground

Crypto behaves like Forex, but slower. Patterns like W and M retests still appear – but it takes more time. The liquidity isn’t as deep, and reactions are more volatile.

You need strong discipline

You need to trust your zones

Don’t expect instant gratification

🧠 My Strategy: Multi-Timeframe Surfing

I personally surf between multiple timeframes to track how the candle looks and behaves:

Lower timeframes = Reaction + Entry Zones

Higher timeframes = Intent + Trend Bias

When I catch the first breakout and get into profit, I don’t panic if the 2nd retest comes.
I look for structure -- not emotion.

If you're unaware of the candle you're trading on, you'll always feel lost in the retracement.

So instead of jumping ship, I wait. I watch the new candle form. I know where I'm at in the story. That's what keeps me in the trade and out of my feelings.

🔹 Final Takeaway:

Whether you're trading Forex, Crypto, or Stocks — the market always leaves clues.
But you need:

A solid grasp of structure

Understanding of candle behavior

Patience to let the 2nd retest show its true intent

Stay sharp. Stay grounded. Trust the chart — not the chatter.

Let me know your thoughts below. How often do YOU see these 2nd retests in your trading?

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.