Tag Archives: acceptance

Seven Day Trading Range

Wednesday’s high is exactly at the prior close and midpoint of the trading range:
 high of day exactly at prior close and range midpoint
Wednesday’s low failed to fill the gap from April 24th at 2374.00.

Price acceptance below the prominent point of control and close from Wednesday (2382.25/.75) could target Wednesday’s low at 2375.50 and potential 2374.00 gap fill. Acceptance into the April 24th balanced profile targets the poor low from that day at 2365.75, and potentially the gap fill from April 21st.

Acceptance above the point of control and prior close on Thursday targets Wednesday’s mechanical high at 2386.00, a weak reference. Trading above 2386.00 would stop the daily one timeframing lower, targeting the highs from May 1st & 2nd, and potentially the trading range high.

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Short, Intermediate, and Long Term Time Frames Balancing on ES

Market Profile daily chart showing five day balance below 2398.00 all time high:

four day balance

All time frames are now balancing, as March ended as an inside month. The rally is tiring.

ES monthly chart

inside month April 2017 ES  Futures

Markets seldom go from bull market to bear, or from bear market to bull, there is often a balancing period in between. The weekly bar chart has been balancing for some time, with two gaps below current price:

ES weekly chart

ES weekly chart balancing

Monday’s regular hours session low at 2380.75 was very mechanically just one tick above the previous settle and one tick below the prior day’s prominent point of control. Exact levels like these have high odds of being revisited.


Price acceptance below Monday’s low targets the five day balance low and gap fill from April 24th at 2374.00. Acceptance into the April 24th bell curve, balanced profile targets the poor low from that day at 2365.75 and potentially the gap fill from April 21st.

gaps below price

There is not much excess on the all time high, and the psychological 2400 level has not been reached in the June contract. Price acceptance above the five day balance high at 2394.75 (April 26th poor high) targets the all time June contract high at 2398.00.

(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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Market Sells Off From Inside Day, Short Covers Into Close

The ES opened near the lower end of Friday’s small range, inside day on the first trading day in April, immediately testing Friday’s low to within a tick at 2358. But after a low confidence, less than 4 point opening period price accelerated lower through the low.

Monday’s early selloff appeared to be a liquidation break from shorter term traders rather than from longer term money selling, evident by the short covering rally into the close.

Short term traders in control

An early bounce in B period off its low at 2352.75 up to 2357.75 went back exactly to Friday’s low, and the selling resumed from the C period high at 2358.00, just one tick above that level, a very obvious short term traders’reference.

Although price sold off sharply, accelerating through two consecutive daily lows and into the March 28th lower distribution, Monday’s low at 2340.00 was not re-tested, and a wide point of control began to develop at 2348.00, turning 8 wide by K period.

Depending on where price opens on Tuesday, Monday’s rally high at 2357.70 could be an important early reference. Opening and finding acceptance above 2357.50 nullifies Monday’s early downtrend, and price could gravitate back to the prominent back-to-back points of control at 2362.25/.50 and on its way to repairing the back-to-back poor daily highs at 2366.75, also the prior weekly high. Opening and finding acceptance below 2357.50 keeps Monday’s early downtrend intact.

The market has stopped one timeframing higher on the daily chart, and is still one timeframing lower on the weekly. Monday’s point of control at 2348.00 did not migrate higher with the late rally. If price opens below Monday’s close, early focus could be on price acceptance either above or below the point of control, and developing value.

Failure for price to find acceptance above Monday’s POC should see a test Monday’s excess single print buying tail at the low. A breach of 2340.00 could re-test the March 28th lower distribution/balance low at 2338.50 and the prior support level at 2332. If there is more serious selling below prior support, more extreme levels price levels could come into play including last week’s low at 2318.00 and the unfilled gap from February at 2312.75.

(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. Please read our disclaimer

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