Tag Archives: spike

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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Late downward spike, poor low in market profile chart

market profile spike
Late day spike in profile, no excess low

A downward spike in the market profile chart occurs late in the trading day, not leaving enough time for the lower prices to be verified as being accepted or rejected.

Acceptance below the spike targets the distributions from the 6/28 profile chart and potentially the prior weekly low/trading range low at 2693.50.



(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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