dbphoenix said:A good example of price moving from one "balancing zone" to another through a "volume vacuum". Not only does a consideration of equilibrium vs disequilibrium provide clues as to direction, it also provides a likely target.
Db
IMO this concept is very much consistent with Market Profile trading strategies, infact Martin Cole at http://www.learningtotrade.com/
has developed a software program called PAT (Professional Activity Trader) based on these observations i.e prices trade from one zone to another, he has named them as MSP zones, ( most significant price - price traded most with vol), breakout therefore and target as next MSP zone.
Anyway this is just my observation.
