Technically speaking....

Here is an example of a technical chart pattern. I have found these to be high probability profitable over the years. Particularly in the Chinese stocks.

The timing is the trick. Too early and they are not highly probabilistic.  Too late and you miss a good entry point.

Usually it is a mistake to take a position when a market is in a trading range if expecting a trend play.
However, with close observation the timing can be refined. I noticed in this pattern that there were a couple of days when the price traded below the price of a couple days previously and then recovered to the top of the range. ie, there was no panic about the price going down. If anybody sold just because the price was below a previous low, they were in small numbers, and others were buying those "low" prices.

The Chinese stocks often gap out of these ranges so I try to get at least a small position early....

This one is good so far. The Chinese market does seem to be bottoming.....

We'll see,
Control risk.
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