Concept question

Hi Sudeep,

Here's my thinking process if looking for a buy here:

When a leg goes more than 50% against previous leg it's more likely to lead to a trading range. So I draw a box and assume TR in progress. This puts the bull bar you marked in the middle 3rd of possible TR. Al usually advises against buying with stops in middle of TRs. I would want to see bears find strong support before being willing to buy in such a location.

Additionally the bear leg was strong. No bar went above prior bar. I assume the first break out of this micro channel will be a minor reversal attempt and won't succeed. It's like a micro bear trend. I would like to see its TL break and then bears fail to resume down once or twice before looking for a buy (just like an MTR).

Now bears fails to resume down twice but bar (A) is big, in middle of TR, and overlapping with previous bars creating a barbwire (TTR). But still it's a good looking bar and hard to resist. I may have taken it even. But when buying in middle of TR trader wants immediate strong BO and price get away from this bad area as soon as possible. I would probably look to exit BE if the next bars weren't taking off immediately.

But let's say we admit that it's a TR and so we sit and wait for something to happen while price is bouncing in the middle 3rd. We know that eventually a BO will happen. To have an idea in which direction, we look for pressure building. There appears to be more strong bull bars accumulating and closing above their middles than strong bears. Eventually there's a BO attempt at (A) but it looks to be failing. Trader has to make a decision, is it a failed BO, or a breakout pullback? Bear bars look weak so could be just a pullback. Al also advises to not enter on BOs in TRs but enter on PBs instead so finally we reach the bar Al marked.

This is all in hindsight of course and if you ask 100 traders to analyze this chart they will give 100 different answers. This is just my interpretation of the kind of things I look for while trading. I probably wouldn't have taken any trades inside this TR anyway if it was me 😭 

Hope this helped!
CH
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Thank You so much @Mr. Carpet, for such a detailed description 🤗 ! It makes me happy when I get my questions answered like this in such a detailed and easy to understand way. 

There will be more questions 😉 !!