Do this by placing the stop under the low of the day at the time of the setup. If they gap is relatively small there will be some cases in which you can continue to use under the previous day's low but this happens less frequently. Reverse this strategy for a short. Any time a stock pulls down to an area of price support it is becoming a lower risk buy. This is especially true of an uptrending stock that has decline.
Minor support is defined as the general price area of the peak in the last rally.
The idea being the prior resistance will become new support. They also serve as good indicators of general areas of support and resistance. An inside range day is one in which that days range is completely inside of the last days price range. Breakouts from inside ranges, especially in the direction the prevailing trend make great buys. The reason behind this is that an inside range day represents the sellers becoming less confident in the continued decline of a stock.