Month: March 2012

Today's open was a text book drive ( which took the market away from the previous value area and the composite POC from last week placed at 5379.


Value started developing lower and responsive buying at a previous High volume node at 5300 just managed to give some hope that a retest of the broken high volume zone may be in store in the coming session.



5287 holds the key for that to happen.Today's move is important as it signifies a break from a developing balance area.


The small split profile on the right shows a concentration of volume at 5319 today and 5334. There are also single prints above 5352 which serve as a reminder of today's initiative seller. If price manages to come back into this zone it will meet with resistance again.


Let's look at a composite structure of the past 2 months of activity.



The composite profile above is in rainbow colors, with the greenish yellow showing higher volumes than the ones below.


This composite POC is at 5380 and declining.The low volume zone is marked in green oval as in the chart above.


The low volume zone represents a range of prices which got rejected by the market by poor trade facilitation between buyers and sellers. These regions are often known to be "Fast Paced" zones and price movement can be rapid in this zone.


It is just the Opposite of the High volume zone where the market finds acceptance and stays within that region as we saw all through last week.


So we are between a low volume pocket below and a high volume zone at the top. The auction in the next session will be interesting indeed.

In between the High Volume and Low volume Zones