A trader explains how to read a downtrend by watching price move to the 50% midpoint, then the midpoint of that range. If it stalls there, the trend reverses. If it keeps going, it continues. He avoids bigger moves that fight the downtrend.
price is tumbling. Yeah, all I want to see is price trade into 50% of the range here and then 50% of this range. And all I want is this move right here because at that point, if this is going to continue to here, great. If it's not, it's most likely going to reverse from here. So all I need is this move right here. I don't need trade from here to here because this is a risky move, and I don't need to try and grab this because this is fighting the overall downtrend
