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:
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.
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