Back-to-Back Market Profile (lower case) ‘b’ Formations

Back-to-back Market Profile 'b' formations
Back-to-back Market Profile ‘b’ formations

Lower case Market Profile ‘b’ formations can suggest the market had gotten too long in the short term, resulting in short term liquidation off the latest all time high, and probably not the more potent combination of liquidation and new money selling.

Wednesday’s profile chart left a very wide (12 TPO) point of control at 2684.5. Acceptance above the POC could target the excess singles prints from the prior two day’s opening periods, and potentially re-test the all time high at 2698.00, which is a poor high with no excess, and potentially the 2700 level.

Acceptance below the POC targets the close from Wednesday, and low of day at 2679.00. Price acceptance below Wednesday’s low could lead to further liquidation, potentially testing the late, mechanical pullback low from 12/15 at 2674.25, and possibly the singe print at 2669.25, and low from that day at 2666.00.

(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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