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The fifth dimension - Sell signal below the Balance Line

Sell signal below the Balance Line has the same principles as the Buy signal above the Balance Line. In both cases you hope that the price will move away from the Balance Line. Following principle 4 you need to have one low to generate a signal (pic.1).
Picture 1. Fifth dimension: sell signal is below the Balance Line
Let's assume that on the price chart you see bar "B" and all the preceding bars. If you read the chart from right to left, then bar "B" is the base bar, i.e. the most recent bar whose bottom is higher than that of the preceding bar. As you only need one lower bottom you can place a Sell Stop order 1 tick below the low of bar "1". Nothing changes when bar "2" occurs: bar "B" is still the base bar and the pending order has not been triggered. Bar "3" also does not change the situation. You should remember that if any of the subsequent bars (before Sell Stop is triggered) becomes the base bar, the previous signal has to be ignored, and the previously placed pending order has to be deleted. In our case, this has not happened yet. When bar "4" occurs, the pending order is triggered and the Sell signal below the Balance Line is generated.