The power of the void
This is one of the best things I learned from spending some time in Pristine’s trading rooms.
Price moves easier when it has no nearby support / resistance to run into. The lack of reference points leaves a “void” on the chart. Traders don’t have any obvious point at which to place their bids or offers, so price tends to blow through those empty areas.
Voids can be created by :
Price moves easier when it has no nearby support / resistance to run into. The lack of reference points leaves a “void” on the chart. Traders don’t have any obvious point at which to place their bids or offers, so price tends to blow through those empty areas.
Voids can be created by :
1) Gaps. Once price enters the gap, it is likely to fill.
2) Straight up or straight down moves.
3) Time. A long sideways consolidation leaves a void both above and below.
When you see a nice void, just think easy money.