01

Read the relationship

When the faster average is above the slower average and both are rising, short-term direction is constructive. The reverse is true when both are falling.

02

Treat the cloud as an area

Price can move through the space between the averages. Avoid treating either line as an exact wall.

03

Add location

Use Volume Profile and prior structure to judge whether price is extended, accepted, or approaching a meaningful area.

04

Wait for confirmation

Direction gives permission. Momentum and price behavior help with timing.