The hAnDbOOk Of TeChnICAl AnAlysIs■ (^) The Range Extremes: Traders also use the previous day’s range extremes as
support and resistance levels for entry to, or exit from, the markets.
■ (^) The Value Area: Traders may also use the previous day’s value area as a zone
of potential support or resistance.
the profile’s big picture
The tendency of price to seek balance in skewed distributions applies to longer
time horizons as well. Look at the overall pattern of all daily profiles. Notice that
figure 17.24 A Mid‐Range Close Neutral Day.
figure 17.25 An End‐Range Close Neutral Day.