A Poor Low is created when the low of the session lacks excess. They can be recognized in the ES* as having less than two ticks (TPO’s) of excess at the bottom of the range forming a flat looking bottom. It indicates that there are short term or weak handed traders who are short at …
A Poor High is created when the high of the session lacks excess. They can be recognized in the ES* as having less than two ticks (TPO’s) of excess at the top of the range forming a flat looking top. It indicates that there are short term or weak handed traders who are long at …
A Liquidation Break happens when the market gets itself overly long. The late majority and laggard buyers run out, then as the market begins to pull-back they panic sell their positions. This causes an abrupt drop in the market. Recognizing liquidations allows a trader to avoid panic and choose the most effective response. They can be recognized …