Imagine you have a ruler that measures how prices move up and down, like measuring how high a ball bounces. This special ruler starts at 0% and goes up in tiny steps (0.5% at a time). When prices move below a certain point between 9:30 and 10:30, we start measuring from there. It's like marking where a ball first hits the ground (that's our 0%), then measuring how high it bounces back up. We can use this ruler in two ways:
When prices are going down (bearish): We measure from the bottom When prices are going up (bullish): We measure from the top
But just like you wouldn't use only a ruler to build something, this tool works best when used with our other indicators!
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