The idea is that if price enters the cloud, assume it will exit the cloud on the opposite side of the entry. I backtested this with the 30min time frame which is almost 100% accurate. Shorting if price enters from above the cloud, and going long when price enters from below the cloud. The exit is either determined by the trader or when the price enters the cloud again.
Stops can be easily set at cloud . If cloud exits in the wrong direction, abandon the trade. I've circle those two instances where you would get stopped out.
For further explanation of 10/30/60/30 see this post