Attached the weekly chart as a reference for your qcuestions (actually, you can try to copy and paste image and post it along with your forum topic).  Anyway back to your questions, on Dec 31, there is a red short term bar mixed with green long and mid term bars.  What that means is the model suggested that the short term wise, there are more sellers but long and mid term wise there are buyers and usually we would see price consolidation here because short term traders are taking profits but still have long and mid term buyers accumulating.  People usually call this "consolidation".  In addition to the bars, the light green background suggested that the market is going to go up.  However this mixed signals won't help on trading, it is better to wait till the model to give clear uni direction signals.

Here I will give you an example of taking position which is what I did on Mar 22, 2011.

First we saw a downward trend since Mar 7 for 10 days and we saw the first green bar on Mar 21.  Usually after the first green bar happens, there should be a better price that you can trade lower than the first green bar and that would be a good time to take positions.  Why?  It is because we have at least one confirmation on upward trend (green bar) and we can see if it switches back to red bar (even though it is uncommon) the next day.  Just in case it is a false rally, we don't have to be trapped.  Most of the time, a regular rally, the price won't spike that much and should have enough time to take positions.  As you can see the background in light green also suggest that the stock will do better in the next couple days which it actually comes out as it suggested.  I have mentioned this is a typical "Bull Mood Consolidation" pattern in my other article.  Also, there are many strategies to take position which I am not going to explain here. 

This is an example show a bounce, as you can see the green bar raising too fast compared to normal behavior (you can tell if the movement is normal or not as you read more charts).  The red bars are similar to the above chart, however the background in red suggested that the stock probably not doing good in the next couple days.  And the final outcome shows it is a false rally (yes the price went up) but if you look at the closing price, it flucturates a lot and we don't want that to happen after taking positinos and the smart way is to get out or you will get shaken out.  Bottom line is the project from the model won't be reliable.  It is luck that makes money for you but not the model.