Tag Archives: anomalies

Market rallies after gap open lower

Rally after a gap open lower results in an outside day to the upside.

rally, pullback low
Rally after gap open lower results in an outside day to the upside

Price one timeframed higher for the first ten periods before balancing above 2809.50. Acceptance below that level could target some of the multiple anomalies and single prints in the poor profile structure below. Opening within the upper balance could target the poor high, where balance trading scenarios could apply – look above or below balance and accelerate/find acceptance at higher or lower prices, look above or below balance and fail (targeting the opposite end), or remain balanced.

Although higher than the prior day, NYSE volume was just over 3 billion shares, usually not indicative of a strong market rally.



(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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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)

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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)

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