A stock you follow takes off and trends sharply. But you miss your entry and watch in frustration as it clears one hurdle after another. Finally it stops and reverses. As it pulls back on your 5-min chart and Level II screen, you have to decide whether or not to join the action. Predicting price movement when an intraday trend pulls back requires both skill and patience.
Some corrections persist or roll over into ranges that empty trading accounts.
But others quickly bounce and take off to new highs. The first pullback from a breakout has high odds of rapidly ejecting in the direction of the new trend. But watch the depth of the correction. If it breaks through several minor support levels before reversing, sellers will likely emerge when price tests the short term high. This common scenario will still produce good trades.