As you approach this case of nine classic buying tests, you ought to keep in mind the following admonitions from Lefèvre’s Reminiscences of a Stock Operator:
This experience has been the experience of so many traders so many times that I can give this rule: In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be—up or down. The thing to do is to watch the market, read the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take an interest until the price
breaks through the limit in either direction. A speculator must concern himself with making money out of the market and not with insisting that the tape must agree with him.
Therefore, the thing to determine is the speculative line of least resistance at the moment of trading; and what he should wait for is the moment when that line defines itself, because that is his signal to get busy.
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