Gap Lower, Selloff Following China Trade Tariffs

market profile spike

Opening within the late spike could confirm the short term down trend with good odds of retesting Thursday’s low. Opening below the spike and Thursday’s low is a sign of weakness confirming price did not travel far enough on Thursday to cut off the selling. Further liquidation could eventually lead to a retest of the February 9th correction low.

Opening above the spike would be more positive, targeting Thursday’s value and possibly the POC. If short covering occurs price could target the value area high and the B period excess single prints from Thursday’s profile. However, large gaps are not usually filled the day after they are created, so the odds would probably favor more of a rotational balancing day.



(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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Selloff Leaves Anomalies in Market Profile Chart



selloff leaves anomalies in profile chart

Anomalies are often a sign of shorter term, emotionally driven traders in control and are often at least partially “repaired” in a future trading session, if not the next.

market profile rally high
Split view market profile chart. 2723.50 rally high

Acceptance above the rally high could target the single print at 2732.25 and upper distribution in Monday’s profile.

Failure to find acceptance above 2723.50 could keep the downtrend intact, with good odds of price retesting the point of control, and the potential to test the 2700 level and the lower end of Monday’s lower distribution.

Acceptance below Monday’s low could target the wide point of control from March 2nd at 2677.75 and potentially test the low from that day at 2652.25.



(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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