Tag Archives: poor high

Bell Curve Profile – The market is long on poor structure, risk to longs is high

After the second consecutive gap open higher, price tagged the overnight high at 2797.75 to the tick and struggled to find acceptance above the June high at 2796.00.

 bell shaped curve in Market Profile chart
Near perfect bell shaped curve in Market Profile chart

Tuesday’s profile, just a 9 1/4 point trading range, was a near perfectly balanced market profile bell curve. The profile chart shows a very prominent point of control at 2793.75 and a no excess high (three TPO’s wide) at 2797.75, which was also the overnight high coming into the day trading session.

If the market gaps open higher again on Wednesday it would be unusual to have three consecutive gaps, and the risk to longs would apparently be very high as recent underlying market structure is also very poor following the prior week’s end rally.



(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 Selloff

balanced inside day
Balanced inside day following priors day’s selloff

The late rally high from the prior day’s trading session was ignored as the market balanced inside the previous range, leaving a poor, no excess high at 2735.25.

Rallying from two ticks above the prior point of control at the third (C) period low, Tuesday’s value area ended the day as slightly overlapping to higher and the point of control had also migrated slightly higher during the day.

Potential scenarios could see price look above or below the one day balance and either accelerate/find acceptance at higher or lower prices, look above or below the balance and fail – potentially targeting the opposite end, or remain within or slightly extending the 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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3/16 Gap Filled to the Tick – Another Poor Low and Poor High in Profile.

poor high and low in market profile chart

Another poor high and also a poor low in the profile chart. Large gaps are rarely filled the day they after they are created, Tuesday’s low did not fill the gap from 6/1.

Momentum trading off of very visual price references has carried the market higher increasing the odds of short term liquidation breaks. Tuesday’s high was exactly at the low from 3/16, very mechanical.

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