How To Read Headwinds, Tailwinds, Perch, and Lean Lines

 

These four labels are in every Weather Report.

 

Headwinds

 

Headwinds - Short bias below the Lean Line.

Tailwinds

 

Long bias above the Lean Line.

Perch

 

Patience.

Lean Lines

 

The level, above or below, to potentially express your bias.

Quick Decision Template

  1. Pick your timeframe: Day Trader, Trader, Investor.
  2. Scan headwinds/tailwinds/perch counts for market regime context.

Common Interpretation Mistakes

  • Using tailwind as an automatic buy signal without setup confirmation.
  • Ignoring timeframe mismatch between report section and holding period.