Why is it support? The current price is where the most has traded over the past few months, so it is the "resting place" where collectively the market is viewed as "balanced" and "fairly valued".
Why is it a low risk buy? The market was distributed and poised to go substantially lower just over a week ago and instead of collapsing it reversed and rallied to squeeze out the weak shorts, but now it has returned to the level where the sellers were in control before. So, we can buy with a close stop because this is the point where the sellers failed last time, which means there are likely buyers lurking here waiting for the opportunity to drive the price back up.
Notice the logic of the decline and how orderly it was using the TIME@MODE logic: See how a mode set-up, a range expansion occured (Yellow Triangle) out of the mode and a decline happened right on schedule. When a mode forms lower in a downtrend that is larger than the previous one, it implies strongly building strength of the trend and more confidence in the trend's continuation. In other words, it builds more time and usually price into the trend.
Keep in mind that the market is waiting for news out of Brexit talks.
All the best,
8:23AM EST 10/18/2017
Could I ask why you are counting only 9d in that mode?
Are the bars before not included because the trend hadn't started yet?
And where is the 6d count coming from?
Thanks a lot