Inside, Balancing Day Within 5 Day Trading Range




5 day balance, inside day
Inside day inside of a five day trading range

Value developed as overlapping to lower Thursday after price sold off from exactly at the prior day’s very wide point of control, trading into Wednesday’s late lower excess.

Split-view Market Profile Chart 7-22-18:

overlapping to lower value areas
Overlapping to lower value area

Developing value could be an indication of attempted price direction on Friday. Thursday’s upper value area is just above the midpoint of the 5 day range.

With the inside day, possible balance trading scenarios could see price:

  • Remain in balance (which could include slightly extending Thursday’s range on either side)
  • Look above or below the one day balance and accelerate / find acceptance at higher or lower prices, potentially targeting the 5 day range high or low
  • Look above or below Thursday’s range and fail to find acceptance, returning back into the balance. The potential would still exist to test the opposite extreme of the 5 day range.

Depending on where price opens, especially if a gap opening on Friday (good oods with recent overnight volatility) the same scenarios could apply regarding the 5 day balance: Look above or below the range and accelerate/find acceptance, look above or below and fail (returning back into range), or remain within the 5 day balance.

(the above, post and all posts on es-traders.com, is an interpretation of market generated information using the Market Profile, and the information contained within is to be used for informational purposes only and not to be construed as investment or trading advice. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)



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Rally Continues from Correction Low, Leaves Anomalies in Market Profile Charts



Multiple anomalies left in market profile chart following rally
Multiple anomalies left in market profile chart following rally

Back to back rallies left multiple anomalies, poor structure in the prior two regular session daily market profile charts. Early volatility saw price trade back into the prior day’supper distribution after a gap opening higher.

Long, stretched out profiles with multiple anomalies are often at least partially repaired soon after. Thursday’s volatile trading left more anomalies of it’s own.

The late pullback low at 2719.50 could be an early short term trading reference on Friday; acceptance above that level keeps the bullish sentiment intact, while failure to find acceptance above that level could see price repair some of the anomalies from the poor structure below.

Split view Market Profile chart
Split view Market Profile chart

The prior recovery high from 2/7 at 2726.75 could also be a level to keep an eye on, depending on where price opens.Trading below that level probably leaves good odds of testing the lower reference.

ES daily bar chart
ES daily bar chart
poor structure in profile charts from correction low
Poor structure in profile charts from correction low

(the above, post and all posts on es-traders.com, is an interpretation of market generated information using the Market Profile, and the information contained within is to be used for informational purposes only and not to be construed as investment or trading advice. DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Please read our disclaimer)




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