As the range narrows and volatility decreases, the market may be entering a "breakout mode"— a breakout upward or downward could occur, but the direction cannot be predetermined. A narrowing range only indicates temporary balance between buyers and sellers; it does not guarantee a strong trend will follow. The first breakout may fail. What matters is whether there is follow-through momentum after a strong breakout candlestick. If price highs and lows continue to contract and candlesticks overlap significantly, avoid trading back and forth within the middle of the range. Wait for a strong breakout with confirmation, or consider entering on a pullback that holds after the breakout. If price quickly re-enters the range, treat it as a failed breakout. #PriceAction