The shorter term TO develops weakness and begins to fall below the longer term TO, while the price still tries to make a new high or tests the previous high (see red circle). The micro trend (black dotted line) leads the weakness pulling down all the higher degree TO with it.
The reverse happens when the trend reverses from weakness to strength (see green circle).
The trend transition takes place translating the weakness/ strength from a lower time frame to higher time frame, giving an early indication to the trader to exit/enter while the price is still making a new high/ low.
