Daytraders After Market Lounge 14th Jan, page-54

@Riijkard

Re PSY, you will see in the chart below that it formed a dominant bullish candle on heavy volume on Jan 5 (circled) and has since traded within the range of this candle on decreasing volume. This is a classic continuation pattern with a very high probability of breaking out in the direction of the initial bullish candle (ie. up) on volume any day now. Given how narrow yesterday's candle was - I think it might even move today.

It's also a really easy setup risk management wise - as you can set your stop loss just under the low of the dominant Jan 5 candle (if it breaks to the downside, the setup has failed).

Hope that helps.