| | | You are on the right track, but history matters.
Since I am sharing these charts, I am going to explain a few things so you can have the right mindset.
The basics - the green, blue, and red lines are where most bottom pickers, typical traders, and top dollar payers entered the market *for the given timeframe*. As you know, I have often emphasized that timeframe is the most important decision you make. To this end, longer timeframes are stronger, but you are more likely to miss on them if you wait for it.
Of these 3 lines, the blue one is the most nuanced. It is where median trade went in (not the average of the price, and not the median of the price either. It is the median of the order flow). So yes, long stretches of the blue line tell you that is where most people will pile in.
Long story short, here's the daily chart. Today we paused where the former green line had a long stretch (see the thin red line extension of the price). We just took that out we're on the way to where the recent blue line had a long stretch, which is about 2492. And then we'll move lower as traders cut losses (or bounce up as sentiment and order flow changes).
I will be taking profits today since I don't want to have the market on my mind.
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