[waveslider]

Thanks soultrader, I am not familiar with Dalton and maybe should do a little reading.
Something else that tells when price is balancing out is price catching up with time, this is the same idea as what you stated I believe. The idea is that the trend will slow down and "recharge" before it makes its next move -continuation or reversal. Either that will happen or there will be a capitulation "washout" move signaling reversal.
One thing to note is that when one of these levels is broken and price holds above or below the dotted line, it will normally come back and retest the other side of the dotted line from the other side.
So in other words, resistance becomes support - not a new concept, just a different way of visualizing it.
Here's a chart from friday's session that shows that happening.