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The fifth dimension - Sell signal above the Balance Line

Sell signal above the Balance Line has the same principles as Buy signal below the Balance Line. In both cases you hope that the price will move towards the Balance Line (go "uphill"). Following principle 4, you need to have two lows to generate a signal.
Picture 1. Fifth dimension: sell signal is above the Balance Line
Let's assume that on the chart you see bar "2" and all the preceding bars. Bar "2" is considered to be the base bar, i.e. it is the first bar (if you read the chart from right to left) whose bottom is higher than that of the preceding bar. As the price tends to move towards the Balance Line, you need to find two lows to generate a signal: First bar right to left, whose bottom is lower than that of the base bar. This is bar "1". First bar right to left, whose bottom is lower than that of the bar "1". This is bar "0". This is why after bar "2" appears, you should place a Sell Stop order 1 tick below the bottom of bar "0". When bars "3" and "4" occur nothing changes: bar "2" keeps the status of the base bar and the pending order has not been triggered yet. Once bar "B" appears the situation changes sharply: Bar "B"becomes the base bar and the pending order, placed 1 tick below bar "0", has to be deleted. A new Sell Stop order has to be placed 1 tick below the bottom of bar "1" (the bottom of bar "4" is lower than the bottom of the base bar "B", and the bottom of bar "1" is lower than the bottom of bar "4"). The pending order will be triggered on bar "6" and the Sell signal above the Balance Line is generated. No matter what signal is created you must ignore it until the first fractal buy or sell signal is triggered outside the Alligator's mouth. You should ignore signals which are not in the same direction as the first signal generated from fractal. For all the signals of the fifth dimension there are two principles which will help you recognize false signals: Never sell above or buy below Alligator's mouth. If the current bar is in the Red or Green Zone (refer to the "Trading in the Zone" page), double the number of new higher tops (lower bottoms) that are required to create a buy (sell) signal.