On this chart it does not mean that price cannot rise from under the switch. This is not how ATRs work. ATR's create probabilities. The situation is not predictive. No indicator can predict anything. If that was the case then everybody would just follow indicators and make millions. That's not going to happen.
The snapshot picture is for a trend following setup which can be engaged on a lower time frame e.g. 5 min to 15 min. Note the hefty disclaimer below because trend-following set ups are high risk and very high gain. They are not easy and require significantly large stop-losses.
Price can certainly move significantly north and head for the moon.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which has a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.