Tag Archives: spike

Wide Range, High Volatility. Anomalies in Profile

anomalies-in-profile-poor-low repaired
Market Profile charts with multiple anomalies are often at least partially repaired (revisited) during the next day trading session or soon thereafter.

Price sold off below the low from Friday, repairing the poor low in the market profile chart.

Price acceptance below the base of the spike at 2666.25 could keep the selloff tone in-tact, possibly testing the buying tail below 2624.50 single print.

There was no outside day as price closed back within the prior day’s range. Value ended the session as overlapping to higher. Price acceptance back above the spike base could see price at at last attempt to repair the anomalies in Monday’s upper distribution.

The market had been one time framing lower on the daily chart for seven consecutive days. One timeframing lower occurs when price fails to take out the prior day’s high by more than a couple of ticks. It is not uncommon for price to stop one timeframing for one day to allow the market to come back into balance before the one timeframing process resumes. An inside day does not negate one timeframing.

(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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Liquidation Break, Outside Day Following FOMC

Liquidation break following FOMC release. The base of the late spike at 2920.25 could be an important early market profile trading reference, depending on where price opens. Value for the day remained overlapping to higher.

late downward spike on market profile chart
Late downward spike on market profile chart accelerates price through the low of the prior two day trading range

Opening below the spike base and within the spike shows price acceptance and could keep the late break intact. It signifies the market had found a level where two sided trade could take place.

Opening below the spike is negative, price has not yet found a level where two sided trade can take place.

Opening above the spike can be positive, since the late spike was rejected, leaving a buying tail.

The low at 2907.50 exactly matched the half-back price reference from 9/18, a very visual short term trader’s reference.

(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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