DAX Futures December 2021

400 zoen right now bought 6 FDXS and 2 FDXM

412 ADDED 4 dax cfd TOO

I have now:
23 fdxs 451,5
6 dax cfd 432
2 fdxm 399

425 AND 426 RIGHT NOW: CLOSED 2 fdxm 399 + 8 FDXS 451,5
443 REDUCED dax cfd FROM 6 TO 3

439 437 NOW CLOSED 5 fdxs

452 closed 2 dax cfd now

421 added 4 fdxs now

414 added now FDXS

+26,5 pips x 2 FDXM=+53 pips FDXM

-26 p x 8 FDXS=-208 p FDXS=-41,5 pips FDXM

+11 p x 3 DAX CFD=+33 DAX CFD=+6,5 pips FDXM

-13 p x 5 FDXS=-65 p FDXS=-13 pips FDXM

+20 p x 2 DAX CFD=+40 p DAX CFD=+8 pips FDXM

I HAVE NOW 16 FDXS 439 + 1 DAX CFD 432.
A dozen green pts gain so far for me, but I completely was wrong att he open....
anyway day is long and I will try to improve this disaster start.

444 now reduced from 16 to 12 my FDXS 439

+5 p x 4 FDXS=+20 p FDXS=+4 pips FDXM

I have now 12 FDXS 439 + 1 DAX CFD 432.

keep on adding some FDXS from 42..zone until 37..39..zone.
Soem closing orders around/above 45..zone up to 49..zone, but for now it seems only a wishful thinking.

I'll back after midday to check if some orders has been filled.
Roughly+20 pips FDXM gaiend so far today.

For the same reason as gaps have to be closed. Gaps and low volume nodes are irregularities of similar character in the auction process. At the range in question no regular price discovery took place.

In the case of a real gap there was no trading at all.

In the case of a LVN there was trading but only very little. Price moved too fast, most probably because of a sudden big order cleaning the order book at once. The effect is very similar to a gap: no regular trading took place.

Real unmanipulated markets (don't apply it to FX or OTC) don't accept non-orderly traded price ranges, and I can't tell you exactly why. Means after some time the market returns to that range to get a confirmation whether the move caused by the sudden event was justified or not.

You can see this everywhere, e.g. at NFP or FOMC time which also causes LVNs. Price spikes and then it retraces back to the original level. After regular trading took place over the whole range the market continues in one direction.

As markets are fractal the same mechanism works on a micro level, too. The whole chart consists of swings up and down and LVNs appear every few swings. An impulse in one direction (when a swing starts) which is then follwed by a retracement to almost the same level. With the built-in bar spacing of MetaTrader you don't need real volume or Market Profile to see it. Just zoom out of an M1 chart. I haven't yet found another charting software where you can spot LVNs with the naked eye so easily.

The interpretation must not be "price will always retrace". It should be: if the rotation completes (i.e. if an impulse is followed by a retracement) and if the impulse started with a LVN then the retracement will probably continue to cover the whole LVN. Irrespective of what happens after.

Yesterday's chart with markers:

thanks a lot, that is very instructive!
closely following M1-candles, i have also noticed this behavior from time to time, but i wasn't aware there is a concept to describe it and didn't think of it in terms of liquidity/auction process.

i understand that you can not trade these M1 LVNs, but if they occur more often, you might interpret them as a signal for a stronger bias in one direction

as regards gaps i have been looking to understand it as something that has to do with the strategies of the market makers. but never found an explanation to understand what exactly is driving this market behavior.

36..zone now : bought 2 FDXM + 7 FDXS
379 NOW ADDED 2 dax cfd too

i have now:
19 fdxs 411
2 fdxm 365
3 dax cfd 396,5.

All positins overnight, few additionals waiting 35..31..zone.
I'll back for US session with Mr Powell.