Red plot = hightrend
Lime plot = lowtrend
Blue plot = centertrend = (hightrend + lowtrend) / 2
Red arrow (down only) = market top = short entry (long exit)
Lime arrow (up only) = market bottom = long entry (short exit)
Blue arrow (up or down) = long or short entry (long or short exit) *
* If the blue arrow is against you, it is better to liquidate the position
Red background = more likely downtrend
Lime background = more likely uptrend
NA color background = 50/50
A down arrow on a red background is a more reliable prediction than an down arrow on a lime background.
A up arrow on a lime background is a more reliable prediction than an up arrow on a red background.
The logic of this system
The price usually moves either in the upper zone (between the red plot and blue plot) or in the lower zone (between the lime plot and blue plot).
If the price is in the upper zone, then this is the uptrend. If the price is in the lower zone, then this is the downtrend.
If now the uptrend, then the red plot is the top of the market, and the blue plot is the bottom of the market.
If now the downtrend, then the blue plot is the top of the market, and the lime plot is the bottom of the market.
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