Reading Range Width Before a Breakout
When a trend pauses, the first question is not whether price will break out, but whether the range is still part of the same move. We start by measuring the height of the consolidation in relation to the prior impulse leg.
On SET-listed names we often see three to seven sessions of overlapping candles before continuation. Mark the highest high and lowest low of that overlap, then compare the range height to the last swing that established the trend. If the range holds above half the prior leg's midpoint, the continuation case stays alive.
Width alone misleads. A tight range on low volume can simply be a holiday-thinned week. We pair width with where closes cluster: if most closes sit on the upper third of the range during an uptrend pause, that bias often resolves upward once volume returns.
Practice this on five historical charts without looking at the outcome. Write down your range box, your expected breakout direction, and the level that would invalidate the trend. Only then scroll forward. This discipline is what we repeat in the weekly study circle.