The Break Hook and Go is also commonly known as a Breakout, Retest, and Bounce (BRB).
THE BREAKOUT (BREAK)
The Break refers to the scenario where price action breaks through a key level you may have (THE BREAKOUT). Although many traders will trade a breakout, there is inherent risk in doing so as price has moved away from the key support/resistance, thus reducing your risk to reward ratio as your stop will be further away from the entry price. Also in the case of options, the breakout may have caused an IV spike, resulting in you paying a higher premium on the breakout.
As you can see in the above image, when the candle broke through the previous support line, there was continuation for a couple of candles, but price then quickly reversed. Traders caught chasing those breakout candles will likely now have to sit through a reversal, and stressing through the trade. It is far safer to wait for the retest of the level after the break.
THE RETEST (HOOK)
Once price has broken through the support/resistance level, often it will come back to retest the level. This is known as the Hook (or Retest).
In the above image, what was once support was broken. We now wait for confirmation for this level to become resistance. 5 candles after the break, you see price retest the level. It wicked slightly above, but closed below the level, confirming it as resistance. Further conviction is added on the next candle where the level again has held, and price direction has now reversed from that level.
Safe places to enter a trade at this point is as close as possible to the level once we retest it and close under it. Your stop would be placed just over the line (accounting for the volatility of the ticker at the time).
THE BOUNCE (GO)
Once the retest occurs, you want to ensure that level is held. It can happen that the price falls back through the level and closes under it, invalidating the original breakout. In the case that the level is held - we retested it and price is starting to move back up (with the candle closing over the level again), this is an indication of the bounce and a safe place to enter. You want to place your initial stop just below the level, and move stops as price moves in your favor to guarantee a win and maximize gains.
I will generally allow price to move to the next leg down before moving my stop to break even to account for volatility in the move. As we continue to move, then I will move stops based on my profit taking goals.