Tag Archives: gap

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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Short covering following gap open lower



The market rallied following an overnight selloff on the news that Trump’s top economic adviser, Gary Cohn, had announced his resignation.

Overnight inventory was 100% short leading to a gap opening lower on Wednesday.

short covering from overnight inventory

Thursday’s rally was not particularly on high volume. NYSE daily volume was also relatively light at 3.35 billion.

Wednesday’s profile was balanced. Notable Market Profile references for Thursday ahead of contract rollover:

market profile trading references

Balance trading scenarios could apply regarding Wednesday’s balance high or low; Look above or below the range and accelerate/find acceptance, http://es-traders.com/short-covering-following-gap-open-lower/?preview=truelook above or below and fail, or remain in 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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