Friday, March 22, 2013

dWbShadowTrader Quad

The Value Area played an extremely prominent role in today's  auction. Price tested VAL (Value Area Low) overnight and failed on the first attempt, taking us down to make new intraday lows. On the retest, an ascending triangle formation assisted to take price through VAL to the POC (Point of Control). Shorts were squeezed here and price rallied beyond the POC. As seen many times before, almost as if to rub it in, price came back to retest the POC twice more, but at those points with it acting as support. The rally continued to the VAH (Value Area High), broke through and found some sellers at the downtrend channel from the highs of last week. The VAH turned into support and sent price back up to the trendline once more making new highs. Consolidation took place for the next part of the day as the auction worked its way back down to the VAH in a beautiful ABC leg. Acting as strong support once more, the VAH rejected any further lows and sent price over 1550 where it closed for the week.