Expiry Logic

If the prices are trading below 60% mark of its range for the settlement, bulls are weak and the settlement will end closer to the lows, often, making a new low for the settlement day.

And vice versa for upmoves/ bulls.

ATR Formula

PC-ATR*.80 to PC-ATR*0.50 Buy Zone
PC+ATR*0.50 to PC+ATR*0.80 Sell Zone
where PC is previous day's close.

Bears get weak near PC-ATR*0.50 to PC-ATR*0.75, 
but get charged up below PC-ATR*0.80 for a target of DH-1.5*ATR

Bulls get weak near PC+ATR*0.50 to PC+ATR*0.75, 
but get charged up above PC+ATR*0.80 for a target of DL+1.5ATR

where DH & DL are current days High & Low respectively.

Topping Process

What does a topping process look like? There’s a significant high. After reaching a significant high, the market uses to have three options.

A: The market turns immediately after reaching the high falling severely in the further course without testing the high again, rudimentarily at least.

B: After the high the market is consolidating/retracing for one to three days then going up again in order to test newly the significant high. In case of a volume above average this test fails being produced a lower high, or it reaches the surroundings of the first high again respectively, turning down again subsequently – finally forming the slightly higher high or the double top respectively.

C: The market overshoots again the first high after the one to three day correction of the first high, and after overcoming the first significant high the market being pushed up by a volume above average, and subsequently exhaustion in price and volume takes place. A durable fall cannot happen before the market is completely exhausted because there won’t be any buyers left and the short sellers get into a superior position.