Tag Archives: poor high

Two Day Trading Range Near All Time High




Another small range regular trading hour session in the ES Thursday, just 8 points, following Wednesday’s 9 point range after Tuesday’s pre market gap higher rally. Value and the point of control closed higher from the previous day.

2 day balance below all time ES high
2 day balance below all time ES high

Long inventory risk in the ES appears to be very high as traders were again buying at very visual, mechanical references, notably late Thursday at the I and K bar lows (just a tick above prior day session high) and the later J period pullback low, mechanically one tick above halfback. These levels have high odds of being revisited.

split view profile market chart 7-13-17
split view profile market chart 7-13-17

Looking like the profile would leave another poor high with no excess on the matching F/G/H bar highs, price traded to within two ticks of repairing the last remaining poor high from June 26th at 2447.50 in the final 30 minute trading period, but fell back to close two ticks above the very prominent twelve TPO wide point of control.

Depending on where the market opens on Friday, potential balance trading scenarios could play out in relation to the two day range:

– Look above 2447.00 and accelerate higher. The all time high would be the initial, obvious target at 2451.15.
– Look above 2447.00 and fail to find acceptance/continuation, and trade back into the prior range. Potential destination trades below the very prominent point of control at 2447.75 are Thursday’s low at 2439.00 (would stop the daily one timeframing higher) and potentially the top of the gap, Wednesday’s low at 2434.75.
– Look below Wednesday’s low at 2434.75 and accelerate/finding acceptance/lower value, targeting the bottom of the gap at 2430.00
– Look below Wednesday’s low and fail to find acceptance/continuation and return back into the two day range, potentially targeting the upper end.
– Although probably unlikely, there is always the possibility the market remains in balance.

(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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Gap Open Higher Repairs Two Poor Highs, Leaves A New One

A gap higher opening on the ES repaired the poor high from the July 3rd and poor/matching highs from June 28/29, but also left a new poor high in the current profile at 2443.75.

ES gap open higher repairs two prior poor highs, leaves one
ES gap open higher repairs two prior poor highs, leaves one

The bulk of the move higher happened in the pre-market, as price was contained to just a 9 point range in the regular trading hour session with mechanical buying from just above the prior weekly high at 2436.50 in the D and F periods.

short term traders buying near prior weekly high
short term traders buying near prior weekly high

Large gaps are rarely filled on the day or day after they’re created, and often during gap days if the gap is not filled and value does not become at least partially unchanged, the odds favor a late day rally in the direction of the gap. A late rally did not occur as price settled at 2439.75, two ticks above the half back level of the session after one timeframing higher in price in F through K periods.

Notable references for Thursday are the prior weekly high (an inside week) at 2436.50, on the downside, and Thursday’s poor high at 2443.75 on the upside.

Wednesday’s profile was balanced. Acceptance and continuation above the poor high targets the last remaining unrepaired poor high above from 6/26 at 2447.50, and potentially the all time high at 2351.50.

Acceptance below last week’s high at 2336.50 first potentially targets Thursday’s low at 2434.75, followed by the top of the gap at 2427.25.

Wednesday’s point of control was very wide, if a breakout occurs from Thursday’s balanced range there should be better odds of continuation if price first revisits the POC.

(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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