I don't really know, but maybe a pullback could mean just dropping back to any point above the breakout, and breakout test means the pullback actually made it close to the breakout area..."testing" the breakout level? I'm not sure I've ever distinguished between the two.
This is my dictionary. break out --> break up - price breaks the recent high pull back --> retrace - price goes up, then goes down a little before resuming the up journey break out test---> testing the recent high - price is trying to break the recent high reversal down - price goes up. then price change direction decisively reversal up - price goes down. then price change direction decisively break down ? break inside ? break outside ? break off ? break through? break and break ? unbreakable ? false break ? real / sincere break ? clean break ?
i think this is it i have read my first book in 1994cbut even though i have come across both these terms many times no one has really explained the difference between them. i find it quite inexplicable
It's not that precise of a deal. IF the "breakout, back-kiss" occurs, you should play it. However, you should NOT bet on it occurring. It often does NOT. The breakout may just continue in the same direction without the "technical retrace" you're hoping for.
Absofrickenlutely! Made the mistake myself many a time... "I'll buy the backkiss test of the breakout"... that doesn't occur... just keeps moving the same direction, leaving me in the dust! The CORRECT technical play... (1) chase the breakout quickly, (2) presume any correction will hold the "breakout/backkiss" support, IF tested. (Whatever "buffer" you want to use for the possibility of a false break of back-kiss support is subjective.) Though a "worth its weight in gold" tip, is not a "great reveal". Anybody who is a student of the markets already knows this.
That's why I worked on trying to trail and use a tight stop loss today in demo during the breakout on the NQ. It SEEMS like it should work when price is trending quickly. It sometimes does, but often, with a tight stop loss for protection, it will get taken out. Using a large stop loss isn't great either, because it can change direction quickly. For now I'm just going to focus on trying to find places price does match my set ups and work on getting those down.
Stops are essential... wide and lose or tight. They protect you from wipe out. Exactly where to place them is subjective and an art.
tests do occur .....near major turning points of trends once the main trend starts...tests are fairly rare...so getting in early is good if the trend has started