$1425.25
1381.00
1353.00 **** (vs. the 1352.75 printed in today's early a.m. Globex trading AND not re-visited in today's day session) ****
1342.50
1264.00
1203.00
1179.00
1123.00
1080.00
explanation of Low Volume Node (LVN):
Low Volume nodes (LVN's) are a Volume Profile or Market Profile concept. LVN's are areas where there is a sudden drop in trade volume on a volume at price histogram.
LVN's are initially created as a result of either a breakout rally or a bounce. During a breakout rally (or breakdown selling), we have "Buying/selling single price prints", the buyers have overtaken the sellers (and vice versa for breakdowns) and the market goes higher/lower quickly.
The breakout rally will initially have lots of volume behind it, but there will be specific areas where very little business is being done as price searches for fair value.
**** Because there is very little business done in that area, LVN's imply "not fair" value.
When price later approaches an LVN, the typical behavior is to:
1) breakout / breakdown again (like a vortex quickly tunneling through the LVN),
OR
2) bounce rejection away from the LVN.
Edited by hiker, 09 February 2012 - 06:07 PM.
