Monday, January 25, 2010

Accepting vs. Rejecting Price Magnet Levels

Recall the recent post re: price magnets in the market. We've seen a rejection of such a price level (blue arrow above) in early ES trade; if this is a legit continuation of the downside, we should not return to that magnet level; it should serve as resistance. Those breaks from a magnet level can be powerful short-term trades, fueled by those on the wrong side fleeing their trades.