I will take another look at this after trading today. The arrows are probably confusing. Basically, you can use all the levels, including the red box levels as sort of a pivot. You want to be long above and short below. Right now for instance (9:17AM EST), I am looking at the EURUSD. It is pushing up into 4636. I would set shorts, target 1.4572. If it pushes through the 4636 levels this is very bullish. I would look to set longs and target 4830. Since the 4636 level has traded both in the EUROPEAN and NA Session, I will remove it from the key levels. It is resolved. The hard part is developing a process for your risk around the reversal levels. The USDJPY and USDCHF are trading nicely between the levels. Look at the USDJPY. You should have been short into 106.29. Taken profit. Price revesed and you should be long into 106.93.
As of 10:37, I see the EURUSD is trading at 4645. It has been holding above the 4636 level for some time. I would cover my short (should be a loss of around 10 pips or so) and either reverse to long or you could also wait for the swing high to be taken out as a confirmation. Not an exact science, just work the levels into your own method maybe as a confirmation, etc. ECB is tommorrow, so it may get quiet.
No just went with the flow below the level and reversed. It's sort of like taking small losses to get in position and then (hoping) you are right on the directional move to make up for it. It is hard to develop the discipline to regularly reverse though.