I'm having a hard time following this post. Can you explain that to me like I'm 5?
I'm attaching a screenshot of a pitchfork setup. It shows price action. Each red and green bar is a "candle".
The bottom line of that pitchfork is strong support and the line above it (the middle line) is currently resistance. But if you can see, it's still slowly moving upward. It's going UP! The price coming back down to this level allows other indicators to "cool off", instead of the stock signaling a "sell" on the technicals (indicators showing overbought). You have many different indicators that people use.
The bottom purple line (rsi) is called the relative strength index. That's also another indicator. If you look at how it shows a small downtrend and looking at the candles on top showing an uptrend, this is called a hidden divergance. It's a bullish (positive) pattern.
As for what I'm talking about in my previous post. We want to see green hopefully. With how the stock went basically from $2 to $24 relatively quickly, it triggered "sell" signals on the weekly and monthly chart. Depending on the time frame you set for the chart, each candle can represent a day, a week, a month, by minutes, ect. So by the price coming back down, it's cooling off other indicators, found great support and starting to slow down on going lower. Each line on a candle shows where the price went to for that time frame. When a candle looks like a hammer (Small wick on either side of the green or red box and a long wick on the opposite side) that is called a fractal (or reversal). So basically we want to see a fractal/reversal candle, then 1 or 2 green candles to confirm the reversal. By being green on a daily candle, the closing price has to be higher than the close of the previous day.
Let me know if you're still confused. I can try breaking it down easier. Lol. It's a lot to take in sometimes.