This strategy does not presuppose the use of any technical indicators on the chart. It is based on assessment of the market in terms of psychology and behavior of the group of traders. Recommended timeframe — H1.
For example, if, moving in an uptrend, the price breaks down the previous high with a relatively high volatility (ie a growing candlestick breaks down resistance level from the previous highs, and within an hour or two, closes at the same level), we can open a sell position. It is because the traders usually place stop orders above the local highs, preparing for the market reversal.
As soon as the price breaks down resistance level — Sell-order will open. Later, take profit is placed, which is equal to the height of the breakdown, ie to the distance from the resistance level to the highs of the candlestick. (Fig.1).