Tag Archives: anomalies

Short covering into the close



With long overnight inventory coming into the regular trading session, price opened above the base of the spike from the prior session but failed remain above it, trading back into the spike in the second half hour period. In times of high volatility, standard market profile trading references are not often as in reliable “normal” trading environments.

short covering negates prior spike

The high of the third period (30 minute) bar could not get back above the spike, reversing at it exactly before selling lower into Friday’s lower distribution in the fourth period.

Split view profile 3-26-18
Split view profile 3-26-18

Price one timeframed higher off the D period low, eventually rallying into the close, to trade as high as 2662.75, one tick below the top of the spike from the 3/22 profile.

Some of Monday’s rally appeared to be very mechanical, for example, bouncing near the current session midpoint at the G & H bar lows, and rallying when the K period low failed to trade back below the opening (A) period high. NYSE daily volume was also considerably light compared to the size of the market rally, at only 2.4 billion shares.

Value for the session was overlapping to lower, despite the apparent strong rally into the close.

Monday’s stretched out profile repaired the anomalies from the prior session’s profile, but left more anomalies of its own. Anomalies are often repaired soon after they are formed. If price opens within range the odds could favor their repair, at least partially, on Tuesday considering the “mechanical” nature of Monday’s rally.

If the rally continues, price could target the point of control from 3/22 at 2672.50 and the un-repaired anomalies from that profile. The next potential targets would be the high from that session at 2698.25, the bottom of the unfilled gap above, and 2712.50, the top of the unfilled gap from 3/21.

With a light news week ahead and the futures market closed on Good Friday, the odds could favor more balance the remainder of the pre-Holiday week.

The longer and intermediate term trends are balancing, trading in a range from the February correction low at 2535.25 and, arguably, the recovery high at 2807.50. The short term trend, on the daily bar chart, is down with a two day balance.

Currently, March is an inside month.



(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)

Share  Facebooktwittergoogle_plusredditpinterestlinkedinmail


Subscribe: 

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)

Share  Facebooktwittergoogle_plusredditpinterestlinkedinmail


Subscribe: 

ES Market Profile Report: Wide Point of Control, Four Ticks of Excess at New All Time High




balance at new all time high leaves prominent point of control

Another new record high was made in the overnight session before Tuesdays open at 2842.00. Price opened within the upper end of Monday’s range and late day spike (showing that the prior day’s late price probe was being accepted), and initially failed to take out the overnight high in the opening drive. A new all time regular session high was put in at 2844.75 after price rallied off the prior day’s high in C/D period.

Split view market profile chart
Mechanical buying was the theme early, with buying at dips off mechanical price levels, most notably at the C/G/J bar lows at just one and two ticks above the prior day session high.

Notable Market Profile References

The D period excess above the C period high held throughout Tuesday’s balancing session, making 2843.75 potentially an important reference on Wednesday. If that excess holds, the odds probably favor at least a retest of 2836.75, and could increase the odds of a potential downside liquidation break and potentially lower prices.

The next downside references below 2836.76 are Monday’s low at 2832.00, and the base of Monday’s late spike at 2828.25. Price acceptance below that level targets at least some of the multiple anomalies in Monday’s profile. Anomalies are a sign of more emotional, momentum based trading and have high odds of being revisited in the very near future.

But all trends remain up. The very wide point of control at 2840.00 limited downside contnuation on Tuesday. That level could provide early support or resistance on Wednesday, depending on which side of it the market opens.

(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)




Share  Facebooktwittergoogle_plusredditpinterestlinkedinmail


Subscribe: