There is a LVN located around 6700 - 6900. We could see some quick mean reversions out of this price area back to current price and possibly back to previous top. I would be looking for a long set up should we trade into this LVN. Low volume rejects and high volume accepts. A LVN is a vacuum for price. The market may plough straight through it our reject quickly from it. LVN's are areas the market does not want to facilitate trade. HVNS are where the market wants to trade. Transactions can only occur when two parties agree on a price. When very few transactions take place the market has a tenancy to revert to the mean (A HVN) with high velocity. When many transactions occur the price tends to squeeze and volatility reduces.
This is just a memo for myself dont trade based on this.
This is just a memo for myself dont trade based on this.