Secret 24
Limit moves are important indicators of support and resistance
When a market is bid limit up or offered limit down (for those markets that still have limits, for example the cattle or corn), this is a level where you could be unable to buy or sell. There is more demand at the limit-up price than available supply or vice versa. The market “should” continue in the direction of the limit move. On corrections, it should find support above the limit price (or below if a limit-down move). Watch for this. If a market again trades under the limit bid price or above the limit offered, go with the flow. These are trades that possess reasonable risk, because they indicate the previous support or resistance is now absent. If anyone can now buy ...
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