Tag Archives: liquidation break

Liquidation Break, Outside Day Following FOMC

Liquidation break following FOMC release. The base of the late spike at 2920.25 could be an important early market profile trading reference, depending on where price opens. Value for the day remained overlapping to higher.

late downward spike on market profile chart
Late downward spike on market profile chart accelerates price through the low of the prior two day trading range

Opening below the spike base and within the spike shows price acceptance and could keep the late break intact. It signifies the market had found a level where two sided trade could take place.

Opening below the spike is negative, price has not yet found a level where two sided trade can take place.

Opening above the spike can be positive, since the late spike was rejected, leaving a buying tail.

The low at 2907.50 exactly matched the half-back price reference from 9/18, a very visual short term trader’s reference.

(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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Early Liquidation Break Ends Weekly One Time-Framing Higher, Short Covering Late

early liquidation break, short covering late

Early selling at the open intensified as price repaired previous multiple poor lows on the daily Market Profile charts, but falling short of repairing the the poor lows from 10/9, 10/3.

Apparent short covering off the G period two-tick excess low rallied price back 17 points to one tick below the A period single print.

The selloff gained momentum after price broke through the prior three day balance low and bounced back exactly to that level and halfback from A period, suggesting the move lower was initiated by shorter time frame momentum traders.

The late rally high at 2558.75 could be an early important trading reference on Thursday, acceptance back above that price level and into the upper distribution probably targets Wednesday’s high and potentially the very prominent point of control from 10/24 at 2567.50, and the poor high from that profile at 2570.25.

Failure to find acceptance back above 2558.75 could keep the downward tone from Wednesday in tact. Price had stopped one timeframing higher on the weekly chart on Wednesday. For more potential serious change price would have to trade below a prior weekly low at 2539.25 and test the current October low.

Price has been one timeframing higher on the monthly chart since the November 2016 Presidential election, if it can close near the October low at 2517.50 by the end of the month the odds could be good that the monthly one timeframing would be challenged in November.

The current all time high was made in the overnight electronic session at 2577.25, something to carry forward as to date, any all time high made in the Globex market has always been traded through during a regular US hour trading session. Although, however, it can remain untested for quite some time.

(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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