Tag Archives: rally

Rally Continues from Correction Low, Leaves Anomalies in Market Profile Charts



Multiple anomalies left in market profile chart following rally
Multiple anomalies left in market profile chart following rally

Back to back rallies left multiple anomalies, poor structure in the prior two regular session daily market profile charts. Early volatility saw price trade back into the prior day’supper distribution after a gap opening higher.

Long, stretched out profiles with multiple anomalies are often at least partially repaired soon after. Thursday’s volatile trading left more anomalies of it’s own.

The late pullback low at 2719.50 could be an early short term trading reference on Friday; acceptance above that level keeps the bullish sentiment intact, while failure to find acceptance above that level could see price repair some of the anomalies from the poor structure below.

Split view Market Profile chart
Split view Market Profile chart

The prior recovery high from 2/7 at 2726.75 could also be a level to keep an eye on, depending on where price opens.Trading below that level probably leaves good odds of testing the lower reference.

ES daily bar chart
ES daily bar chart
poor structure in profile charts from correction low
Poor structure in profile charts from correction low

(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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Short, Intermediate, and Long Term Time Frames Balancing on ES

Market Profile daily chart showing five day balance below 2398.00 all time high:

four day balance

All time frames are now balancing, as March ended as an inside month. The rally is tiring.

ES monthly chart

inside month April 2017 ES  Futures

Markets seldom go from bull market to bear, or from bear market to bull, there is often a balancing period in between. The weekly bar chart has been balancing for some time, with two gaps below current price:

ES weekly chart

ES weekly chart balancing

Monday’s regular hours session low at 2380.75 was very mechanically just one tick above the previous settle and one tick below the prior day’s prominent point of control. Exact levels like these have high odds of being revisited.

05-01-2017-split-view-profile

Price acceptance below Monday’s low targets the five day balance low and gap fill from April 24th at 2374.00. Acceptance into the April 24th bell curve, balanced profile targets the poor low from that day at 2365.75 and potentially the gap fill from April 21st.

gaps below price

There is not much excess on the all time high, and the psychological 2400 level has not been reached in the June contract. Price acceptance above the five day balance high at 2394.75 (April 26th poor high) targets the all time June contract high at 2398.00.

(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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