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 that high of range.
There are two common responses the market has to a Poor High.
The first is that prices should push away (lower) from the Poor High. This could last just a few seconds or it could go on for days.
The second is that at some point (could be days/weeks later) the Poor High is revisited; the odds then strongly favor that it will break and move higher by at least two ticks. We call this a “repair” as it repairs the structure of the high that lacked excess, giving enough volatility for a proper two-sided auction.
*Every market is different. They all have different rhythms, patterns, and volatility. So, each trader must figure out what are the “Norms” for their particular market or asset. For example, they may find 3 ticks is good excess, because most of the highs and lows in that market are three or more ticks in size.