On the morning floor session on Mar 18, 2015 we had a discussion on what a High Of Day (HOD) Retest looks like and how it compares to a HOD Breakout. Candle 1 defines the first HOD. Candle 2 is a HOD Breakout, but the two candles after it show that new support and resistance are quite far apart and that old resistance (HOD) is not new support. Candle 3 is the next HOD Breakout, and the two candles after it (Candles 4 and 5) show that new support and new resistance are close together and also define old HOD resistance is now new support. Therefore I drew the trade. The final step was to find where 2 R was and identify what % move of the stock was required to achieve 2 R. In this case, it would have required about a 3% move of the stock from open; since that is less than 5%, I placed the trade. I ended up with 2.88R on this trade, but most importantly, I traded my plan. To learn how to test a strategy, read this article: reallifetrading.com/7-steps-to-building-your-own-trading-strategy/