I found this post that MO wrote me on page 383 of The Ideas, it's about extremes and I think it could help:
I keep saying "don't read old posts, they are just going to confuse you when you read the new posts" but people do it anyway.
A stop at the extreme is not required, but if it were then you would simply change your position size to give yourself more space.
The flaw in trading away from the extremes is that there is only ONE highest high & lowest low in a given period of time.
If price is at the extreme then it is not below something and if it is not lower than something then how can we go short?
We could wait for a smaller chart to move below something but now we are praying that price moves to the opposite end of the bar and starts expanding in the opposite direction; something that is even less likely than an extreme being THE extreme.
Will there be hundreds of pips between the extremes, yes.
If you know the end then all that you have to do is solve the beginning.
If you want to learn how to read a chart then focus on patterns and breakouts.