Gaps in Value area

[waveslider 10]

I have been noticing that gaps between value areas are about as significant as VPOCs. They act as price magnets. As an example, there is a gap between Monday and Tuesday's value areas (7/23 and 7/24). We'll see if that acts as a magnet. The idea is similar to price filling in gaps on a chart.

 

Anyone else watch this stuff? Maybe Pete Sted. mentioned this?

 

ws

[TinGull 10]

That's interesting. I've never noticed that or done any research on it. I do know gaps in value areas are significant, but never watched to see if they acted as price magnets. Look forward to seeing some more research on it.

[notouch 10]

In whipsawing markets (like we have at the moment) they would tend to fill but in strongly trending markets they wouldn't. I would advise looking back over the value areas over several months before coming to any conclusions.

[waveslider 10]

That's a good assessment notouch. However, the majority of the time price is not trending strongly, so it seems worth looking at.