Low Value

Introduction:

The Low Value of a trading session represents the lowest price reached during the given period. It is a key metric for evaluating market sentiment, volatility, and trend reversals. Traders use the low value to identify potential support levels and bearish trends.

How does it work?

Low_t = min(P_low)

Where:

• P_low is the lowest price recorded within the time frame.

Interpretation of Low Value:

1. Support Level Identification: If the price consistently rebounds from low values, it suggests strong support.

2. Downtrend Confirmation: Lower lows in successive sessions indicate sustained bearish momentum.

3. Market Fear and Selling Pressure: A rapid decline to a new low suggests strong selling pressure or panic trading.

Practical Applications:

1. Risk Management

2. Trend Reversal Strategy

3. Breakout Strategy