Tag Archives: half back

Gap and Grind Higher

A gap open higher to begin the week left an early poor, no excess low in the Market Profile chart.

ES gap open and grind higher,
Gap open higher, mechanical buying exactly at half back level in ‘H’ period on this Market Profile chart.

Mechanical buying exactly at half back level in H period (2779.25) suggests that shorter term buyers were in control, and that level could have good odds of being retested.

The point of control is only somewhat prominent at 8 TPO’s wide, but could be an early trading reference on Tuesday. Acceptance above the POC could target Monday’s high at 2787.75, above that level is the prior monthly (June) high at 2796.00. (Price had already traded to 2797.75 at the time of this posting. The overnight high and low are always valid short term trading references going into the regular day trading session).

Price acceptance below 2779.00 could target the no excess low at 2772.75, and potentially the unfilled gap from 7/6. Friday’s breakout was on low volume, if liquidation occurs price could target the bottom of the upper distribution from Friday’s profile and late pullback low at 2756.75, and potentially try to test of the top of the prior short term trading range at 2748.00.

 no excess low on Market Profile chart
Gap higher with poor, no excess low on Market Profile chart

Large gaps are seldom filled the day after they are created. However, there exists the possibility of an island reversal if Friday’s breakout of balance fails.




Therefore, looking at Monday’s range as a one day balance, potential balance trading scenarios could be: look above or below the balance and either trade (with acceptance) higher or lower, look above or below the one day balance and fail – returning back into the range and possibly retesting the opposite end, or remain in balance (which could include a slight extension of the 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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Poor High, Late Pullback to Half-back in Profile Chart

Poor high market profile chart
Poor high in the market profile chart

The market attempted a breakout higher of the previous three week high above 2680.50. The move higher was on lower futures volume than Friday, while Monday’s NYSE volume was also relatively light.

The late pullback low at 2676.25 in L period on the chart below was very suspect, as it was at just one tick below the session’s half back level and exactly at the point of control.

split view profile chart displays mechanical pullback to half-back level
split view profile chart displays mechanical pullback to half-back level

Value was higher throughout the day.

Monday’s profile left a poor high (no TPO’s of excess) at 2687.00. If the poor high is repaired and price finds acceptance above that level, potential targets are the high from 3/22 at 2698.25 (the bottom of the unfilled gap) and gap fill from 3/21 at 2712.50.

The mechanical nature of the late pullback low to half back leaves good of of being revisited. Price acceptance below that level could target Monday’s low at 2666.00, further liquidation could see a test of Friday’s point of control at 2658.25. The next downside reference would be the low from Friday at 2644.75.



(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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