Tag Archives: one timeframing

Gap Open Higher, One Time-framing Trend Day Lower Ends as Balanced Session

poor high, rally high market profile
Late rally high did not reach earlier poor high

After a gap opening higher following Monday’s rally, the market left an early poor no excess high in the profile chart and continued to one timeframe lower into the prior day’s trading range. Price reversed and rallied on news that China would reduce trade tariffs against the U.S. from 40% to 15%, but settled to close just below the point of control. Value was mostly higher early, and ended the day with an overlapping to higher value area.

rally high market profile chart ES Traders
Price failed to hold the gap after opening above prior day’s range, leaving a poor high in the market profile chart before re-entering the prior day’s trading range. The late rally high in the profile could be an early reference for the next trading session.

The late rally high and upper distribution at 2661.00/2662.25 could be the early focus on Wednesday. Acceptance into the upper distribution could target the poor high and the upper distribution from the 12/7 profile.

Failure to find acceptance above the rally high could resume the downward tone to the market.

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Short Covering

Short covering leaving anomalies in the profile chart.

Apparent short covering leaving multiple anatomies on the market profile chart. Anomalies are often at least partially repaired the next trading day or soon after. Odds could favor a balancing trading day.

Short covering can weaken a market. The daily chart has been one timeframing lower for six consecutive regular trading sessions. Price would have to trade above Thursday’s high to stop the one timeframing lower on the daily chart.

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