08-22-2006, 12:21 PM
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Status: Super Moderator Join Date: Aug 2006 Location: Tokyo Thanks: 545
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| VAH once broken will act as key support
Chart post from August 22nd market action. We had a market that gapped down for roughly 35 points. The markets rallied in the opening causing prices to lift and easily penetrate the value high pivot. This is the first sign of market imbalance. The second sign was when the markets penetrated beyond the previous days high.
Notice the value high pivot in line with the gap fill as well. We also have the daily pivot (yellow line) clustered in this zone. Once prices broke through this level, the VAH acted as key support. This is a classic market profile trading strategy:
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