Well this rule applies in reverse too> Don't sell after a lot of selling
And don't sell into a zone of support (demand - i.e a place where buyers are.
You violated both of these rules: selling after a long red bar and selling into a zone dominated by buyers.
I think most of us would have bought at the place you sold. I did.
As to the descending triangle idea of buyers getting used up, that
was a minor point merely used to demo the major one of support/resistance (demand/supply). in the above exampole there is a small triangle that uses up the buyers. And so one could sell PRIOR to the long red breakdown bar that you sold after. But even then you would be (and did ) sell into a huge pool of buyers.
As to your piling up of areas of supply - where did that come from? Nothing I've seen before.
There are zones where sellers are the dominant force entering the market and zones where buyers are the dominant force enter the market. And these are at the extremes.
Thanks noushina for clearing it up.
