When prices are in a trading range, count the number of closes above or below a specific price near the vertical mid-level of the trading range. If 70% of the closes are above the mid-level price and the market cannot rally and close above reaction highs, a severe correction may be imminent. If a market breaks and cannot close below reaction lows, then expect a rally to carry prices above the reaction highs. E.g. Let's assume that a futures chart is showing that about 90% of the Closes are above 445.00, yet prices cannot Close above 455.00. If prices finally do Close above 455.00, a strong buy signal would then be in place.
Another way to determine that prices are about to break out of a trading range is to note if you have a 1-2-3 followed by a Ross hook within the trading range. If both are present, the percentages favor a breakout to follow and entry by way of a Traders Trick Entry is acceptable.
A 1-2-3 formation followed by a Ross hook is a consistent objective chart pattern for defining that a trend exists. Once the point of the Ross hook has been violated this pattern is enough to establish that a trend does exist.
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