All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others.
In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout. Entry at these spots doesn't guarantee sure win but minimize our risk and increase the chances of reward. After an entry, stops can be placed below the range or below the prior swing low -- whichever suits the situation.
Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range.
Notes on the chart.
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Great insights! I've also noticed that if the price action is just below the 1st pivot resistance line, and stays there for a while, it's more likely to breakout than go down (in 70% of the cases).
This happens only if the price action has been coming from the lower levels to the first resistance. If the price is falling and then comes to the 1st support line and stays there for a while, it's more likely to breakdown than go up. Just what I've noticed happens in most cases.
Love your detailed explanations. Thanks!
Bravetotrade
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@mackanshunegi, your welcome and thanks for sharing your experiences.