Page 87 - A Complete Guide to Volume Price Analysis: Read the book then read the market

What we are waiting for now is our first marker, which just as in the case of our congestion entrance in the previous chapter, is a pivot, and as we
are in a bullish phase we are looking for a pivot high.

As we know markets never go up or down in straight lines and this is the first sign of a reversal, which in turn may also define the upper region of
our trend as we break away. Remember the pivot high and the pivot low are combinations of three candles as shown below in Fig 8.12

Fig 8.12 Pivot Creation

We now have our first point of reference in the price move higher, and since we have a pivot high, we know that the market is going to reverse
lower. This could be a major reversal, which is unlikely given the volume profile and the recent price congestion, but at this stage we are never sure
and must be patient. The volume is falling, which a good sign, and in due course, the market stops, and reverses higher, posting a pivot low. We
now have the second marker in our journey higher, as we can see in Fig 8.13.