Markets Test Both Ends

[Soultrader]

This is a common pattern in the YM. The markets will usually test above or below the value area to see if there are sellers/buyers in that zone. If not, price will get pushed back into value to test the other extreme.

Whenever the previous days high and low is right above/below the value points, watch these levels closely. The markets have a tendency to test these areas before a reversal.