Qualifying Relative Retracement

By qualifying a retracement level, the probability of identifying a successful intraday breakout is enhanced if any of the following occur:

1. The close of the prior bar to the upside (downside) penetration is down (up) versus the close two bars ago, OR

2. The open of the first bar exceeds upside (downside) the retracement level, OR

3. The difference between the previous bar's close and its true low (true high and close) added to (subtracted from) the previous bar's close is less than (greater than) the retracement level. A true high is that bar's high or the close of the previous bar, whichever is greater. A true low is that bar's low or the close of the previous bar, whichever is lesser.