Today I read a wonderful article posted by Mr. Lance Beggs "A Simple Step To Becoming A Better Trader" on his website. Please read it here in full.
He states after every trading session, find something you can learn from, perhaps a market structure feature, perhaps an interesting sequence of price action, perhaps a trade management insight. Whatever you find to be of most value! Document it. Store it in your journal. Review your journal as often as possible.
I have decided I am going to record my observations. I am going to start with the second example that he quotes. "A strong momentum drive into the close with no follow-through overnight provides an initial expectation of a range-bound environment."
I feel we can expect range-bound movement at least in the morning session or for few hours initially if the above condition is met. Yesterday's price action in Nifty Future in the morning session was a good example.
There is also another example. In this case, it lacks momentum but the price moves in one direction only and closes near the lows. In such case, our initial expectation could be range-bound movement.
In conclusion, a strong momentum drive into the close or trending move into the close with or without good momentum; with no follow-through overnight, provides an initial expectation of range-bound movement.
Don't forget, an initial expectation should be amended if the price action suggests otherwise.