If the stock price is close to the top and i would like to be in the game. I usually sell otm put somewhere close to 50 day or 200 day, depending how bad i want to participate.
A futures scalper aiming for 1-5 ticks on 10 contracts or whatever might well buy when price is near a prior range high on the assumption that there will be a 'magnet' effect. From the perspective of another type of trader that is buying at the top. A wave counter (with an edge) might buy anticipating a breakout, fundamentals..
many experts and writers would say when price breaks out of resistance line, go and buy. But this is what I will do: small range - stay away from market big range - can trade. when price is around support line, look for reversal up signal. when price is around resistance line, look for reversal down signal. how to define big or small range? you have to make judgment based on historical.
Naw... I just run my mouth. (Political thread mostly... how I hate Obama, Hellary, Pelosi, Schumer, Waters, Cummins, Guiterrez and others... DemoCrap party... all the people doing their best to harm America.... big government.. that sort of thing.)
Doesn't matter whether weekly, daily, intraday, each instrument has it's own general history based on decades of data, so my system is seeking when price has hit certain high know it is due to go thru, but from stand point of what my brain likes, I rather buy support, but this too actually is 50/50% of going one way or the other, and I rather luv the failed breakout caused by newbies entering and getting stopped out soon after as they underfunded. Then system is feeding them to get out while system is jumping on board. TaDa.
People have reasons for doing what they did at that moment...and it's not really for me or for you to decide against it or for it -- they have their reasons. It's hard to criticize someone in real-time...you'll only truly understand the collective, whole picture of things in hindsight, for better or worse. If you ask me, nothing is truly neutral or range-bound or flat ...but rather calmly, waiting, on the verge to breakout or move in one direction or another. If something is flat lined, it's dead. And the market is never dead...it moves. constantly. The market is like a sleeping bear or bull or snake or shark or bird or human...just because it's not moving, that doesn't mean it's dead, or range-bound....you have to use your collective foresight and vision and intuition and knowledge and wisdom, Make Trading Great Again 2018...High-Five` ET, extraterrestrials