Tag Archives: single prints

“P” Formation Market Profile Chart

Opening two ticks below the previous regular session’s small range, price reentered and rallied through the balanced, inside day repairing the poor high in the profile.

"P" Formation Market Profile Chart
“P” formation in the Market Profile chart. Can be typical of short covering.

When C period opened at the B period high, leaving almost ten points of single prints in the first two periods below, the odds should have been good that many of those would be filled in.

The reversal in C period traded lower, mechanically, to the A/B single print at 2578.25 before bouncing and retesting the early high, but did not trade back into the 5+ points of excess from the opening period.

split view profile 11/13/17
Split view profile chart for 11/13/17: 2580.75 late pullback low exactly at prior 3 day balance low. Price acceptance below that level could test ‘A’ period’s lower excess in profile. Acceptance above it could keep pressure on shorts, retest highs.

Value was developing as overlapping to higher, with a point of control widening to four TPO’s at 2580.25 in the fourth period that climbed to 2581.50 by the close, as the market balanced in a narrow range at the prior day’s high.

The market was also one timeframing higher from the open, not stopping until H period, lowering the odds for any significant retracement before coming off the high in the final hour of trade.

Early focus on Tuesday, depending on where the market opens, could be on the late M period pullback low at 2580.75. Acceptance below that level could test the C period low at 2578.25 and potentially trade back into and “fill in” some of the excess single prints below.

Acceptance above the pullback low and the wide point of control and settle at 2181.50/2582.00 targets Mondays high and could bring the all time high back into play.

Technically, the session closed as an outside day as price opened below the prior day’s range but closed above it, although only by one tick.

(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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Market Profile “P” Formation Suggesting Short Covering After Prior Week’s Selloff




After leaving a poor and weak low (no excess and exactly at the prior day’s low) on Friday’s 10.5 point balanced regular session profile, the ES gapped open higher on Monday on seemingly high confidence, but not very high volume (first half hour NYSE volume was just at 317,798).

Ignoring the 100% short overnight trade leading into the open (no correction) the market rallied/*short covered from the opening bell, leaving a long string of excess single prints in the opening period.

gap higher following poor low

Excessive single prints in a single 30 minute period are often at least partially filled in on the day they’re created, or soon after. Monday’s second period (B) could only trade 5 ticks into the A period single prints, leaving 24 ticks of excess. Single prints, along with gaps, are a form of excess.

split view market profile chart
split view market profile chart

After rallying higher to just a single tick below the very wide point of control from 8/9 at 2466.50 in C period, the market balanced in less than a 4 point trading range until a minor liquidation break in K period failed at the A period high and single print at 2461.00.

The high or low of the day is often made in the first 90 minutes of trading. After the early short covering ran its course, and with no new apparent longer term money buying (as evident by lower volume), the high of C period at the wide POC marked the high of the day

It appeared that short term traders were back to buying off mechanical levels – G/I/J/M lows were all within one tick of Thursday’s (8/10) selloff high, the K period low was exactly at the A period high and single print, and the L period low was a single tick off the K low.

Monday’s rally put price back into the multi day trading range above 2457.00, and after closing as an outside week on Friday, back near the center of the prior week’s range.

It is not uncommon for a new trading range to develop following a large gap higher to begin the week, as large gaps are rarely filled on the day or day after they’re created.

Monday’s profile left a poor high at 2466.50 and another very wide point of control at 2463.75. Depending on where price opens Tuesday, balance trading scenarios relating to Monday’s upper balance between the K period pullback low at 2461.00 and the day’s high at 2466.50, could apply:

– Look above and repair the poor high at 2466.50 and accelerate/ continue higher. The excess prints at the 8/9 high and multiple anomalies from the 8/8 profile are potential targets.
– Look above and repair the poor high at 2466.50 and fail, returning back into Monday’s upper balance area and targeting the very wide point of control at 2463.75. Acceptance below the K period pullback low at 2461.00 targets the excess single prints and potentially the lower gap.
– Look below Monday’s K period pulback low at 2461.00 and accelerate, targeting the excess single prints and lower gap.
– Look below Monday’s K period pulback low at 2461.00 and fail, returning back into Monday’s upper balance targeting the wide point of control and poor high.

*Total NYSE volume for Monday was very low at under 2.7 billion shares, also suggesting Monday’s trade was mainly short covering.

(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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ES – Balanced inside day following selloff from all time high

Monday’s regular trading session opened within the previous day’s elongated range but below the prior close, and below the late rally high from Friday at 2429.25.

The ES sold lower in the opening period to two ticks above Friday’s single print buying tail, mechanically selling at halfback intra-bar in A period and leaving a long line of single prints (over 8 points) – early clues that the early move lower was probably just a liquidation break rather than from larger time frame money continuing the selloff from Friday.

ES Market Profile chart- Balanced inside day following selloff from all time high
ES Market Profile chart- Balanced inside day following selloff from all time high

Although early ES volume was higher, and first half hour NYSE market volume was substantially higher at over 535,000 shares, price did not find acceptance into Friday’s single print buying tail.

The market balanced in less than an eleven point trading range on Monday, leaving a poor high at 2427.50 (no excess) and a very prominent point of control at 2422.00.

An early reference on Tuesday could be on the prominent point of control, as acceptance above that level has good odds of repairing the poor high. If price can also find acceptance above Monday’s high, odds suggest price would attempt to repair some of the anomalies from Friday’s range.

Split view Market Profile chart 6-12-17
Split view Market Profile chart 6-12-17

Balance trading rules could also apply on Tuesday, depending on where price opens: Look either above or below the high or low and either accelerate, or fail. A failure of an attempted breakout from the inside day could target the opposite end of the balance. Another potential scenario would see price remain balanced around Monday’s range ahead of Wednesday’s 2:00 PM ET FOMC Meeting Announcement.

Potential destination trades to the downside, if price breaks out lower, could include Friday’s low at 2412.20, the June 1st low at
2410.50 and the unrepaired prominent point of control from May 31st at 2405.25 (September contract).

There is now substantial excess at the all time high on the short, intermediate and longer term time frames, although the profile from the June 9th record high is a poor high, with only one tick of excess.

(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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