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This works particularly well if using puts to construct the spreads because, if the stock moves lower, the long option captures the rise in implied volatility that usually accompanies increasing fear surrounding the stock's decline.
I cannot stress this enough. In the image example below, we can see how lower highs and lower lows signal a down-trend in a market: I strongly believe that once a trader knows how to analyze highs and lows correctly, he has a much better chance of trading profitably.