Some rules to understand the strategy: - shade of red trends = primary (the black one are secondary trends) - Redish trends is primary as medium investors are arbitring short/long term investors decisions.
Div: Trend vs demand/supply -Ascending trends with red cloud is most likely tested twice before break up. -Descending trends with green cloud is most likely tested twice before break up.
Conv: Trend vs demand/supply -Ascending trends with green cloud doesn't need retest to break up. -Descending trends with red cloud doesn't need retest to break down.
Current idea:
Too many gaps in the supply/demand mapping => It's a good R/R for traders as these gaps will generate huge down momentum and probably push the drop futher down. I wouldn't target the demand clouds as the momentum will wipe it off but directly the static support.