Tag Archives: excess

Markets Sell Off to Begin the Week – Fear of Possible Trade Wars Finally Sink In

large gap lower
large gap lower to begin the week

Often large gaps that begin a new week develop into a new short term trading range. Large gaps are also rarely filled the day after they are created.

market profile rally high
Split view market profile chart shows late rally high following early selloff

The late rally high at 2725.00 could be an early Market Profile trading reference on the next trading day. Continued acceptance below that level keeps the current downtrend in tact. Acceptance above the late rally high targets the excess single prints above 2732.00, and potentially test the prior monthly high at 2745.25. The session low, at just two ticks above the psychological 2700 level, is also very questionable.



(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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Gap Lower, Selloff Following China Trade Tariffs

market profile spike

Opening within the late spike could confirm the short term down trend with good odds of retesting Thursday’s low. Opening below the spike and Thursday’s low is a sign of weakness confirming price did not travel far enough on Thursday to cut off the selling. Further liquidation could eventually lead to a retest of the February 9th correction low.

Opening above the spike would be more positive, targeting Thursday’s value and possibly the POC. If short covering occurs price could target the value area high and the B period excess single prints from Thursday’s profile. However, large gaps are not usually filled the day after they are created, so the odds would probably favor more of a rotational balancing day.



(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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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)




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