Tag Archives: gap

Gap Higher, Balance

balance after gap opening higher
One day balance after gap opening higher

The ES is trading in an eight day balance between 2700.50 and 2741.25. If price opens within Monday’s range potential balance trading scenarios could include: look above or below Monday’s balanced range and accelerate/find acceptance at higher or lower prices, look above/below the range and fail and potentially target the opposite end, or remain balanced within Monday’s range (including slightly above and/or below ). Wednesday brings the release of the FOMC Minutes so remaining in balance would not be unusual ahead of that announcement, barring any major news events.

A break below Monday’s low could target the gap from Friday at 2719.75, although large gaps are rarely filled the day after they are created. There is also an un-visited very wide point of control from the 5/18 profile at 2714.50.

8 day balance
8 day balance

Price acceptance above Monday’s high targets the prior weekly high at 2741.25, and potentially the gap fill from 3/16 at 2752.75.

Monday’s wide point of control could act as either early support or resistance, or a price magnet, on Tuesday.

multi-day trading   range
multi-day trading
range



(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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Selloff fails to fill gap



Split view market profile chart 3/16/18 ES JUNE CONTRACT showing selloff failing to fill the gap, rally high at 2767.25
Split view market profile chart 3/14/18 JUNE CONTRACT showing selloff failing to fill gap, rally high at 2767.25



(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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