Long IdeaWhen this occurs, it is not uncommon to see price approach the line, and
"throw a spike" over the line. At other times price might approach but not
quite reach the previous high or low. This tells you that the current price is
already on the correct side. You will therefore expect the price to "bounce
down” or “bounce up" as the case may be. This will most often occur
around the time of the London open. You should recall that this is likely to
be part of the market makers aim of keeping traders trapped. If they've
already made a high for instance, and there are positions trapped here then
they will not want to push price above it again but will then approach it,
perhaps even spike with an enlarged spread and pull away again.
