Tag Archives: liquidation

ES Balancing Within July 27th Range




ES balancing in trading range
ES four day balance inside July 27th trading range

The ES is still balancing inside the wide range from the July 27th profile. After trading through and repairing the prior two day’s matching highs at 2475.00 at the open, an early attempted selloff Wednesday failed to find continuation below the C (third) period low, allowing two sided trade to occur around the around the prior RTH session low. Another session apparently dominated by short term traders – liquidation followed by short covering.

split view profile 8/2/17
split view profile 8/2/17

Price rallied exactly back to the open price at 2474.75 in the final period, a very visual, mechanical short term trader’s reference.

Wednesday’s late pullback low at 2471.00 could be an important short term trading reference for Thursday. Acceptance above that level re-targets the upper distribution balance above 2475.50 from the July 27th profile, and could challenge the all time high.

Acceptance below 2471.00 at a minimum keeps the market in short term balance, with good odds of retesting Wednesday’s poor low at 2463.25. Acceptance below Wednesday’s low could target the July 28th low at 2461.50 and the single print buying tail from 7/28, potentially challenging the prior weeekly low (and the weekly one timeframing higher) at 2457.00.

(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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Balanced, Inside Day Following Latest All Time ES High

Monday’s regular hour trading session opened within the upper distribution of Friday’s rally to a new all time high. Early chop and no acceptance back below Friday’s late pullback low at 2455.00 contained price there, ending the session as a balanced, inside day.

balanced inside day following new all time high
Value areas and points of control migrating higher with price on daily profile chart

Short term, mechanical buyers were waiting to buy pullbacks off obvious references – a tick above the open print in C period, and exactly off the prior high in E, trading higher into the excess single prints at Friday’s high in D & H and lowering the odds that Friday’s excess (just three ticks) will now be lasting.

split view market  profile chart
split view market profile chart

With just a 6 1/4 point trading range, Monday’s profile was balanced, which happens often following a previous trending day. It was also an inside day. On Tuesday, potential balance trading scenarios could be in play:

– Look above Mondays high and immediately challenge the all time high at 2461.25, an upside breakout would accelerate to new all time highs, finding acceptance at higher prices
– Look above the balance and fail, returning back into Mondays range and, probably minimally, targeting the lower end of the range.
– Look below balance and accelerate. Acceptance below 2454.25 could easily test the prior all time high at 2451.50
– Look below balance and fail, returning back into Mondays range, targeting the wide point of control at 2457.25, close at 2458.50, Monday’s high and a potential new all time high.

There is only three ticks of excess now at the all time high on the daily and weekly charts, probably lowering the odds that this excess will be lasting. But if liquidation does occur, which is very possible due to the mechanical nature of the buying during the four day rally, price should find acceptance back into Friday’s lower distribution, below the prior all time high, with good odds of testing Friday’s low at 2444.25. Trading below 2444.25 would stop the daily one timeframing higher off the July 11th 2410.00 low.

More serious selling would see price test Thursday’s low at 2439.00, and potentially the top of the gap (July 12th low) at 2434.75. The bottom of the gap from July 11th at 2430.00 remains unfilled.

(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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