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7.3 POC Resistance to old volume
The Market tests the Highest Volume Traded and is immediately rejected before
coming down to the unfair lows. At the unfair lows buyers step in to bring price
up, they leave an HVN support bar behind as price continues back into the prior
rejected POC. This HVN leaves us a clue that there has been a lot of trading
interest in this area. This area will act as a futures pain point for long traders. It
is also clear that price is not willing to trade in the POC area as price is swiftly
rejected. Since the HVN consists of relatively new orders we can expect a
breakdown of this level as traders who were long exit degrading positions
thereby creating new sell orders. Any retests of this HVN from a downside
retest will be met with much resistance as losing long positions offset orders near
break even.
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