1. Marking Key Levels (Previous Day’s High and Low)
Identify and mark the high and low of the previous day’s price action on the chart. These levels act as significant support and resistance zones where potential reversals or breakouts may occur.

2. Wait for Price to Breach Either Level
Be patient and wait for the price to reach and breach either the high or the low of the previous day’s range. This indicates market interest in testing liquidity beyond these zones, creating a setup for potential trades.

3. Confirmation Before Entry
Always wait for a clear reversal confirmation, such as a candlestick pattern (e.g., engulfing, pin bar), divergence, or another technical signal. This ensures that the price is rejecting the breached level rather than continuing the trend, improving the probability of a successful trade.

This approach emphasizes discipline and minimizes the risk of entering prematurely into false breakouts.