PATTERN: Rainbow Road

DESCRIPTION

This heatmap is characterized by having multiple prominent nodes of positive and negative values, in many cases bearing a resemblance to a rainbow. Another distinct feature of this heatmap is the lack of a clear range for price to trade within, heralding choppy and erratic price action.

HOW TO APPROACH

It is highly advisable to avoid trading when positioning is vague. Instead, wait for a higher probability setup to form.

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EXAMPLE 1

Indecisive positioning near the beginning of the session, with nodes of interest spread across an 80-point range. (07/02/25)

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EXAMPLE 2

Multiple prominent purple nodes in the 641-637 range suggest choppy and erratic price action. (08/19/25)

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EXAMPLE 3

A cluster of prominent nodes can be seen across a 100-point range.. (08/07/25)