01Definition
Expansion moves out of a range. A pullback tests what buying remains after that move.
02Why it matters
The percentage decline alone cannot distinguish a retest from structural failure.
03What to check
- The prior breakout area and base
- Sell activity and subsequent recovery
- Liquidity changes and external holder evidence
04Healthy / Dangerous
Healthy
Selling cools and repeated buying stabilizes price near the prior area.
Dangerous
The base fails, rebounds weaken, and liquidity deteriorates.
05Beginner mistake
Calling every 30–50% drop either healthy or dead.
06Takeaway
Judge what the pullback does to the structure.
See the idea
- 01
Price expands from a range, then declines 35%.
- 02
The prior breakout area holds through repeated tests.
- 03
The decline may be a retest; a sustained loss of that area weakens the view.
Try it on a token
See it in Meme Fast → InspectUse available historical candles for ranges and returned swaps for observed flow. Candle volume does not provide a buy/sell split.
Go deeper
Base → expansion → pullback → continuation is one possible path. Specify what would count as a failed retest before interpreting every rebound as confirmation.
Need the basics? Revisit 101A →