Pocket

By Lawrence

It has many names as it is discovered and rediscovered again and again by different people.

When you see a move, say an up move, retracements are expected. If a retracement low does not tag the previous swing high or an important reference price level from a breakout, within a very small range like a point or less, you get a pocket.

These pockets are tagged easily later in the day or by next trading day.

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Comments
  • smilingsynic July 8, 2011 at 3:27 pm

    Today is Friday,and I am am looking at Thursday’s chart.

    Would 1348.75 be an example of a pocket, because the swing low at the 155-200 bar was 1349, The market went up to make new highs, and then the pocket was closed at the 355-400 bar.

    Is this what you had in mind as a pocket?

  • Lawrence Chan July 8, 2011 at 3:39 pm

    Yes that is a pocket.

  • Minty415 August 19, 2011 at 6:55 pm

    For the market\volume profilers out there…pockets are similar to LVN (low volume node) and single print TPOs.

  • kashter August 31, 2011 at 10:10 am

    Thanks Minty

  • vertigo3 September 8, 2011 at 2:34 pm

    I think charts depicting a couple of examples would be much better. I looked at the day SS referenced.
    These things happen all over the place, how are you supposed to weight their importance?

  • vertigo3 September 8, 2011 at 2:40 pm

    here’s a chart of the pocket ss identified

  • irza February 4, 2016 at 8:18 am

    For trading date 2/3/2016. 15 minute chart, is 92.25 a good example of an untested pocket?

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