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Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
No ignorance by asking questions. Low Volume Nodes (LVN's) are areas where price moved out of very quickly in a break out or break down in trend. Usually very little trades took place in this area (low volume) meaning price was not accepted there. These areas can become magnets for price down the road but can also serve as support and resistance. The terms are in reference to Market Profile of course and are watched heavily by the bigger players in the market. I don't want to go into a long winded explanation but that's the gist of it.
Node is a physics term with reference to a point on a standing wave.
Speaking of nodes, price on the Euro has now reached the ledge of the next high volume node (HVN) which is providing support so far, hence the sideways action so far in RTH. Price could be getting absorbed around the 1.2970 area with the hope that more buyers step in. Be careful though, this could give way if no one steps in.
Very small daily ranges the past days on Euro. Question is if it will retrace or continue the trend. If eur/usd take out today's high, I would guess the former is most likely, considering that both weekly and monthly range have been fulfilled to the downside.
"We may not be able to control the wind, but we can always adjust our sails"
I'm not expecting that but its possible IF today's high is taken out.
Average ranges is based on different time-frames and how much a currency have potential to move in that given time-frame. I usually look back 30 periods to make an average, which for example makes the average weekly range on eur/usd is 376 pips. Nothing fancy at all
"We may not be able to control the wind, but we can always adjust our sails"
I know what they are. I don't trade them, and don't believe in them since in my experience they work just as often as they are ignored. But a volume profile picture would help visualize the explanation better for those who are interested in that approach.
Like I said, I could never find any high level of consistency in their usage, but I'm sure there are probably some out there who have discovered the secrets to get consistent performance out of them.