Here we go...
I am assuming all pivots to be minor pivots which may get upgraded
to visual pivots based on the market action.
Figure 1 :: This is simple. We closed below the ERL marked in green and also broke the highest mpl so minor downtrend has started.( Any one of these conditions will confirm minor DT.
Figure 2: At (a) we closed below the green ERL which means minor downtrend has started so the high of the move becomes VPH
Once we close above the ERL at (b) that means minor uptrend has started making point (a) as a VPL and when we break this point (A) we are now in a
Visual downtrend
Figure 3:: After A when we either close below green ERL or go below the minor pivot and come to B,that means minor downtrend has started thus making point A as VPH
Price closing above the red line has no significance.But if it closes above the green ERL then B becomes VPL.
But as we have broken C on the upside,we have started minor uptrend. Now our attention points are A (VPH) and B (VPL) .If A is taken out, then we have resumed/started visual uptrend, but if B is cracked,after making lower high,then we start visual downtrend with lower VPH and VPL.
Figure 4: B has closed below ERL so A and B are VPH and VPL.Between A and B we have sideways move.
When Z breaks A we have higher VPH but VPL is firmly at B .When we go below B we take a short trade because we are now in a possible or likely visual downtrend and in our method we trade possible visual downtrend on break of VPL as visual downtrend confirmation will be too late.
Break of 2 is a minor uptrend making point 1 as VPL.
Trust the above helps ( and there are no typo errors
)
Smart_trade