Today was a trend day with a difference.
An inventory which got excessively short at 5332 was rebalanced by a move to 5375 creting a “pullback high”. This has been marked out at 5370 in the charts.
5370 is a prior ref level, but the purpose of these two lines is to mark such levels in charts as levels for continuation or change.
The pull back high was 10280 in BN charts.
Pullback low/Rally high: Applicable to trend days and is a late afternoon price migration against the prevailing trend. During a trend day there is usually one afternoon inventory adjustment; the pullback high or low is the extreme of this inventory adjustment. On the following day the pullback high or low is used to determine if there has been any meaningful change relative to the previous day; if the pullback high or low is not violated, there has been no meaningful change in the opposite direction of the prior day