To interpret this situation, you need to get the concept of price action.
Market is made of forces, sometimes that are directional, without any forces coming against. Also there are forces that oppose each other at some point in time.
In this example, there is a D1 trendline plotted, which carries a D1 energy (D1 Trendline).
While D1 force is on the way up, it meets a W1 force (yellow rectangle) that is an ABA (Acceleration - Base - Acceleration), thanks to the candle structure on the way down (blue rectangle).
So we have a D1 force on the way up against a W1 force on the way down. W1 force down will win over the D1 force up.
D1 players (bulls) have set their Stop Losses ( 1.5730) at 2ATR below the level where they enter (1.5950), which is a support to the market (market structure level in green).
As a result, because this move on the way down is caused by D1 players who are panicking, you will experience only downward (red) D1 candles from now till the green support level.
Market is made of forces, sometimes that are directional, without any forces coming against. Also there are forces that oppose each other at some point in time.
In this example, there is a D1 trendline plotted, which carries a D1 energy (D1 Trendline).
While D1 force is on the way up, it meets a W1 force (yellow rectangle) that is an ABA (Acceleration - Base - Acceleration), thanks to the candle structure on the way down (blue rectangle).
So we have a D1 force on the way up against a W1 force on the way down. W1 force down will win over the D1 force up.
D1 players (bulls) have set their Stop Losses ( 1.5730) at 2ATR below the level where they enter (1.5950), which is a support to the market (market structure level in green).
As a result, because this move on the way down is caused by D1 players who are panicking, you will experience only downward (red) D1 candles from now till the green support level.