Breakout of Balance to Begin Week



breakout-of-five-day-balance

The ES gapped open higher to begin the week, breaking out of the prior multi-day trading range.

Anomalies in market profile chart
Anomalies in market profile chart

Multiple anomalies in the market profile chart are often a sign of more emotionally driven and shorter time frame momentum traders. At least some of the anomalies have good odds of being revisted in a soon-after trading session, if not in the next.

breakout of balance, late pullback low

The late pullback low at 2769.50 could be an early trading reference on Tuesday, continued acceptance above that level could test the excess single prints above 2780.50 and possibly Tuesday’s high. Acceptance above the high could target the unfilled gap from 2/1, 2/2.

Price acceptance back below the pullback low could at least suggest a potential balancing day developing, and/or a possible test of the prior trading range high, and the gap fill from Friday.

Monday’s rally was not on notably high volume. NYSE daily volume was just over 3.2 billion.

(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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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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