Those that has extremes harder to define. Look for patterns/trends on a lower time frame? Wait for breakout and sit on your hands? How do you find the extremes to trade from which provides the maximum reward and lowest risks? http://prntscr.com/cc39g4 Middle Box looks like a triangle? These are hard to trade, but am staying out when I see these, looking for some input. I will to start a daily chart analysis journal and post as I learn more and more, what you guys think? For my own tracking and people can share their analysis too, which I/we can learn and improve.
I am a contrarian too. Meaning that I love to sell new highs and buy new lows. I am not looking to enter inside the daily range. I'll be watching for levels outside the current High & Low of the day. Cause as you said, they offer the least risk for the maximum reward. My Sell area would be 13.800 & 13.100 my Buy area. From there I can't tell more. But I'll expect the price to either reverse (Cool) or to continue (Damn) or to consolidate (Ok). If continuation then close on a retracement (BE at best). If Reversal then put Stop Loss at BE. If consolidation then watch it carefully. So define your areas then watch the Price Action and the Volume at these levels. Lines are areas which are to be tested. These are questions you throw at the market. Let him answer then act accordingly.