The Previous Days Range & Why It's So Important/How I Trade it 1/2

Soooo, why is the previous days range so important? There are several correct answers to this question;

1. The previous days range mark the outermost extremes the buyers & sellers could push us either way (duh, Captain Obvious).
2. When we reach these prior extremes, we know 1 of 2 things is going to happen; we either breakout and search for new value (p.s. value & balance are interchangeable), or we reject the breakout, and return to previous value (aka, auction failure)
3.Usually (barring "poor high/low", think time) the extremes form some kind of excess (think $9 coffee) and where excess is formed, is where we want to do business, because therein lies the greatest opportunity.
4. When a breakout happens, this tells us that the market is out of balance, and the upside/downside is unlimited.

The trade ideas I'm about to present seem and are easy in concept, but the execution is where it can get tricky.
So, lets start off w/ a easy-peasy example, & was actually a trade I took on twitter in the NQ last Thursday.