Throwback
A post-breakout pullback to the broken resistance level, which now acts as new support — a common re-entry opportunity in trending markets.
A Throwback occurs after a bullish breakout: price breaks above resistance, advances briefly, then pulls back to re-test the former resistance level now acting as support. The flip of resistance to support is the core principle behind throwbacks.
Throwbacks offer cleaner entries than chasing the initial breakout candle. A hold above the prior resistance on the pullback, confirmed by lighter volume on the dip and expansion on the next advance, validates the support flip.
- The bearish equivalent (a throwback below support after a breakdown) is called a pullback or dead-cat bounce.
- Throwbacks occur in roughly 60%+ of valid breakouts.
On the desk
Stock breaks above a 6-month resistance at $75 on heavy volume, reaches $79, then drifts back to $75 on light volume over three days. Holding $75 on the close is a throwback buy entry with a stop just below $74.