price will likely range for a bit on 30m TF, I would expect to go short eventually, might be wrong, of course
well, after gaining a bit more ESSENTIAL information, like looking at the chart on Daily TF I have to reconsider my previous statement. price has been trending up on a daily for quite some time and I have no reason to think why it should not keep doing that. I would see if it goes down a bit (like around 3670, though unlikely) and then enter long. In general I wouldn't trade this at this point, though.
this is my interpretation of what VO tried to explain: Pink arrows indicate the chime / tail they are observed at the end of a "path" - a price development in one direction, indicating a change of sentiment / price that blue line is a representation of a past reference level; here followed by a sharp reaction to the downside (point B) a anticipation / theory could be, that in the region of the second blue arrow there should be some kind of reaction to the downside - it isn't without a hindsight view, my favorite action would be to go long on the next bar - which would be wrong, as it is red actually the red candle could serve as a kind of confirmation of the first pink arrow / tail: a softer version of price change to the downside a anticipation/theory could be, that price tends to correct to the area of the first blue chart However, this is an attempt to explain and understand the techniques described - please hammer on it, if it is wrong, as it is not my intention to contribute with false or misleading information.