Markets are always in a never ending cycle. Cycle means the change from Expansion to contraction and then from contraction to Expansion. If at all there is something to rely on market movements it is this phenomenon. How can we use it. When market goes into narrow ranges trend traders can get ready for a Breakout day (ofcourse we will take price action confirmation on the breakout day ) or when market enter expansion phase mean reversion traders can stay away. Start observing this Basic Price action phenomenon and you will start to see a difference in the way you trade as you are better prepared for the next move.

The Following Example is from Bank Nifty 5 min View 

In the above example you could see banks Expanded yesterday and today it went into Contraction phase. Trading Expansion phase had its own benefit and trading contraction will be via option spreads and volatility dry down techniques. If you want to learn more I teach an Advanced Price Action program one to one , For more details do call /watsapp at 7373339777

Happy Trading And learning !!!

Cheers !!!