What Tony's referring to daydreamer is the fact that once an aggressive tranche of one-way trade bias (shorts or longs) begins to get pared off or encashed, it naturally tips prices back in the opposite direction.
For example: Look at today's chart of GBPJPY. Following the NFP release, aggressive speculators shoved price down hard to the 229.0 round number base (an hourly s&r zone).
Once these shorts begin "squaring off their positions" or buying back their shorts, it causes a backdraft. This usually results in a temporary wave back in the opposite direction to the aggressive trending bias.
Occasionally, these temporary waves back attract demand from value chasers & we experience an equally strong move back up the ladder if the level turns out to be a strong area of demand.
Otherwise, the speculators again attempt to drive prices lower (once they've banked their initial profits) & look to larger tranches of money to support the directional flows.
These zones then become the subject of (sometimes) fierce fulcrum levels between Bulls & Bears - resulting in prolonged consolidation/range clips.
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