Tag Archives: balance

Two distributions, probable short covering rally

Anomalies in the market profile chart are often repaired, or traded back through, soon after they are created. Wednesdays balance and Thursdays rally traded back through the multiple anomalies in the profile following the April 24th selloff. Thursday’s (4/26) market profile chart also left a poor high at 2675.50, closing just off the high of day.

short covering rally

Depending on where price opens in regards to areas of balance, potential trading scenarios could include:

– Look above or below a balance and accelerate/find acceptance

– Look above or below a balance and fail, targeting the opposite end

– Remain in balance

Prior wide “naked” (not yet revisited) points of control can act as price magnets, often drawing price back to them. There are very prominent points of control both above and below Thursday’s range.

market profile daily charts

Focusing on the two separate distributions in Thursday’s profile, price acceptance within the upper balance would probably have decent odds of repairing the poor high, and potentially re-testing the high from 4/24, and if the market remains strong price could target the upper excess single prints from the 4/20 profile.

Carrying past information forward, the high from 4/19 at 2703.50 was mechanically just a single tick shy of filling the gap from 4/18, and the very wide naked point of control from the 4/18 profile at at 2714.00 has not been revisted. The prior weekly high is at 2718.00.

split view market profile chart
Split view market profile chart 4/26/18

If price opens in or finds acceptance back inside Thursday’s lower distribution, below the pull back low at 2663.75, the lower excess single prints in the profile could be tested, followed by the small gap at Wednesday’s high at 2645.00. Acceptance back into the 4/25 range could target the 10 TPO wide naked point of control at 2629.50.



(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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Failure to Breakout of Two Day Balance, Wide POC Near Range High

Failure to break out of the two day balance. The wide point of control from Thursday is just below the high of the two day range.

failed breakout of two day balance

Price acceptance back into the two day balance below the point of control targets the wide point of control at from Wednesday at 2649.25 and potentially the poor low at 2638.50.

Acceptance back above the balance could target 2676.00 and the upper distribution from 3/22, and potentially the high from 3/21 at 2698.25 (bottom of unfilled gap) and gap fill from 3/21 at 2712.50.



(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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2 Day Balance



The ES is currently trading in a small two day balance within a larger multi-day balance

  Two day balance ES daily chart
Two day balance within a larger multi-day balance, ES daily chart

Wednesday’s profile was a balanced, inside day featuring a prominent point of control and a poor low.

2 day balance, inside day

The point of control could act as early support or resistance, or draw price back to it, perhaps briefly, depending on where it opens. Potential trade scenarios in regard to the two day balance could include:

– Look above balance and accelerate/find acceptance higher, targeting prior daily highs
– Look above balance and fail, return back into the balance targeting the wide point of control and possibly the opposite end of the balance, potentially lower
– Look below balance and accelerate/find acceptance lower, targeting prior daily lows
– Look below balance and fail, return back into the balance targeting the wide point of control and possibly the opposite end of the balance, potentially higher
– Remain in balance within or around the current balance (probably lowest of odds)



(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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