This chart is meant to show price action forming a base and support for the underlying equity. Notice when the %R crosses above the -80 line - it's at the bottom of the base. I noticed this AFTER drawing the bases. Which means, what you can visually see and interpret from looking at the price movement is/can be technically confirmed by the indicator - and confirmation is always a good thing. (When this %R crosses that mark [-80] it is said that the equity has/is forming a base)* All my unlicensed opinion*