Interesting the falling three appears in the weekly chart of the xjo as well Rick an appeared around a support but also broke down to the next support before the bounce .
I think your analyses is correct to look backwards over the prior periods candles an look in different in different time frames for supports etc
Like i have sell signals on it thats for sure . My averages in the worm's on drugs are telling me sell . How many do i need till i get stung by the electrifying market dynamics !