Lets provide some examples of market charecteristics(you should define your trading strategy based on how the market behaves) I will make a short contribution: 1 The market tends to trend. (if this is true, one can earn money just on following the trend..however many new traders lose money because of taking profits too early, and holding on to losers to loong, without reversing etc) 2 Bigger likely hood of a trend break if the market has been consolidating for sometime, as momentum and volatility is building up. 3 a couple of touches of an important area gives higher probability of trend break, as the the level becomes a zone of attraction, where stop losses is gathered and the market therefore tries to pursue them 4 extended period of consolidation is an indication that there will soon be an increase in volatility.(earn money on this by either setting a buy or sell position, with tight stops and reverse if stops are triggered) 5 impulsive movements trying to break a trend is usually a false break out. 6 if there are longer period of times between touches of a support or resistance level, there is a high chance that this level will hold on the next one, wheras the opposite= short period of times between the touches of important levels, indicate that there is enough momentum to break the level. and so on, like this: