Free lessons › Breakout & Retest Strategy › The Retest Playbook

Target selection

Reading the next liquidity level for your T1 and T2.

7 min · Beginner

What you'll learn

• Choose T1 and T2 from the next levels on your map instead of from hope
• Set targets slightly in front of levels to improve fills
• Calculate a blended R-multiple when scaling out at two targets

Key takeaways

• Targets come from the next levels on your map, not from a dollar amount you hope for.
• T1 is the next significant level, and T2 is the major level beyond it.
• Front-run levels by a few cents so your orders actually fill.
• If the first real level is less than 2R away, the trade does not qualify.
• Blended R is the weighted average of each piece's result.

Glossary

• T1 and T2 — First and second profit targets, set at the next significant level and the major level beyond it.
• Speed bump — A minor level that may slow price briefly but is not significant enough to be a target.
• Blended R — The average R-multiple across all pieces of a position that was exited in parts.

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