The principle of range contraction / expansion

The principle of range contraction / expansion

We can tell when the market is approaching the end of contraction and a halt because the average daily number narrows. We know a potential breakout is at hand. However, it is difficult to predict the direction of the breakout because buyers and sellers seem to be in perfect balance. All we can do is prepare for the increase in volatility or range expansion!
Most breakout trading strategies let market tip its hand as to which way he wants to go before you enter. This technique sacrifices initial trade location in exchange for greater certainty, that the market will continue to move in the direction of trade entry.
The good news is that breakout strategies have a high win / loss ratio. The bad news is that whipsaws can be cruel!