Double Distribution

double distribution market profile chart
Double distribution market profile chart 8/1/18

Little volatility following the release of the FOMC minutes where the FED left rates unchanged. The market profile chart formed a double distribution, with just two ticks separating the two balance areas.

Value was overlapping to lower along with a point of control that had migrated lower during the session.

Looking at each distribution as a separate balance, balance trading scenarios could apply; look either above or below a balance and find acceptance – potentially targeting the opposite end, look above or below a balance and fail – potentially targeting the opposite end, or remain balanced.

The odds could favor another balancing day on Thursday ahead of Friday’s monthly jobs report.



(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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Value Lower, Poor Low

lower value area
No acceptance above prior day’s lower distribtuion

The market dipped below the psychological 2800 level, leaving a poor low at 2798.25. Failure to find acceptance back above the late rally high and value area high from Monday could lead to a retest of the 2800 level and the poor low. A short covering rally above 2812 could target the excess at Monday’s high, potentially the excess single prints and upper distribution low from Friday’s selloff.

Tuesday is the last trading day of the month and the beginning of the two day FOMC meeting. The volatility events for the week will probably be on Wednesday at the release of the FOMC minutes and the release of the monthly jobs data on Friday. The prior weekly low is at 2796.00. The market has been one timeframing higher on the weekly chart for the past 4 consecutive weeks.

lower value after selloff
lower value after selloff



(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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Poor Profile Structure

poor structure in market profile chart

The market rallied following Trump’s European joint concessions announcement, leaving poor structure in the market profile chart. The 2836.00 spike base, and probably more importantly, the 2831.25 late pullback low just before the announcement, could be important early references.

Acceptance below 2831.25 could target the weaker references below, increasing the odds of a liquidation break or correction.

If the market euphoria continues, there is an unfilled gap at 2860.00 from 1/29/18, and the all time high (September contract) is at 2883.75, potential visual targets.



(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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