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Technical trading is mainly centered around patterns with supports, resistances & change in trend signals.

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"Patterns repeat, because human nature hasn’t changed for thousand of years” - Jesse Livermore

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In a bearish set up, supports are vulnerable to break. In a bullish set up, resistances face the same challenge. 

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While there shall always be corrective (retracement) price action in both set ups, the existing patterns will have to break important opposing key levels to indicate a transition from one set up to another. 

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Think of supports & resistances as forts protected by an army/garrison of bulls & bears respectively.

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Supports = Forts of Bulls
Resistances = Forts of Bears

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For example, a break of a few important resistances in an existing bearish set up would be a potential signal of a transition. Similarly, taking out a few salient supports in an existing bullish set up shall be a harbinger of a potential shift in the trend. 

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Such a transition signal shall then require a shift in the preferred trading strategy from "BUY on DIPS" to "SELL ON BOUNCE" or vice-versa.

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Traders who are less risk averse simply stick to operating in the direction of the trend. On the other hand, intraday scalpers may have the propensity to position themselves at most or all key levels & hence will need to be very nimble & focused in managing risks. The slightest of indiscipline & our LIMBIC brain will quickly begin to generate biases & adversely impact objective decision making. 

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FIVE NECESSARY pointers in trading:

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1] 90% of the battle in trading is managing & regulating one's emotions. It is a process of training oneself to absorb that HOPE & BIAS can NEVER be a strategy in trading.

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2] Developing the ability to clearly differentiate between DECISIONS and OUTCOMES. A well thought analytical decision need not always have a desirable outcome. Sometimes, timing & luck can dominate outcomes. Don't let a good trading decision with a bad outcome create a negative bias or emotion in your mind about future decisions.

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3] Technicals will always consolidate all fundamental levers & convert them into patterns with key levels. All market moves are simply liquidity changing hands because of emotions of fear & greed. This can be easily captured with technicals & wave mathematics.

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4] Markets and Economy are NOT THE SAME. They need not have a proportional correlation all the time. Markets move on "future expectations." Expectations can be irrational & will always trigger emotions of fear & greed. On the other hand, economy is the reality.

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"Markets can remain irrational longer than you can remain solvent." - J Keynes

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5] Patience is everything. Focus on developing it & putting an end to FOMO (Fear Of Missing Out).

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"Patience is not simply the ability to wait - it's how we behave while we're waiting." - Joyce Meyer