Clues are piece of information/evidence/facts that helps investigators to discover/solve sequence of an event. In this case, these clues are used to identify the sequence of price action/trend. These clues also can be used as signals to confirm price action direction or even a sequence of multiple trends.
Left upper corner there are 3 clues that is informing us that price action is breaking downwards.
First clue is that price action broke and is forming below the minor support line/zone. It is considered minor support, because there only 2 touches and usually in lower time frames the support or resistance zones are very weak.
Second clue indicates price action made lower low. These lower lows inform that price action is moving downwards. Third clue is the higher low is also informing that price action is heading downwards.
In the chart there is red line/zone that is the resistance, the more touches of the higher low touches the stronger it will become. This resistance can be used to place stop loss above it, not on it or well trader will get stop out every time price action hits it. The higher lows also can be used as stop loss zones as stated in the chart. If downtrend continues, just move the stop loss to the next following higher low.
The pink line is the support zone which has multiple touches of the lower lows. As seen in the chart the price action is bouncing between support and resistance line/zone forming downward channel pattern. At the bottom of the chart price action breaks the resistance/channel indicating the rend is about to reverse.
Left upper corner there are 3 clues that is informing us that price action is breaking downwards.
First clue is that price action broke and is forming below the minor support line/zone. It is considered minor support, because there only 2 touches and usually in lower time frames the support or resistance zones are very weak.
Second clue indicates price action made lower low. These lower lows inform that price action is moving downwards. Third clue is the higher low is also informing that price action is heading downwards.
In the chart there is red line/zone that is the resistance, the more touches of the higher low touches the stronger it will become. This resistance can be used to place stop loss above it, not on it or well trader will get stop out every time price action hits it. The higher lows also can be used as stop loss zones as stated in the chart. If downtrend continues, just move the stop loss to the next following higher low.
The pink line is the support zone which has multiple touches of the lower lows. As seen in the chart the price action is bouncing between support and resistance line/zone forming downward channel pattern. At the bottom of the chart price action breaks the resistance/channel indicating the rend is about to reverse.