Tag Archives: wide point of control

Balance Within Overnight Range

Large gaps are rarely filled the day after they are created. This held true on Wednesday after price opened near the top of Tuesday’s range, which had gapped open 11+ points above Monday’s range. Price was contained completely inside the overnight range, with the day’s low exactly at the overnight low and the high of the day just two ticks below the overnight session high.

S&P 500 emini overnight range
Overnight range

For the third consecutive day overnight inventory was close to 100% long going into the start of the regular session, setting up the possibility of a larger liquidation break in the near future. The overnight inventory is considered long if the majority of trade had occurred above the prior day session’s settle.

day session contained within overnight range
ES day session contained within overnight range

During the recent rally and breakout above the prior three week range, price rallied often from very visual price references, a sign of shorter timeframe traders in control, who can often easily give up their positions in the event of more serious liquidation.

Thursday’s balanced profile featured a very wide point of control at 2714.00, where all but one 30 minute market profile period had traded through. Depending on where price opens, that level could act as early support or resistance on Thursday.

Wednesday’s settle at 2709.75 was just above at the half-way mark between the January all time high and the February correction low at the 2708.00 level. Acceptance below Wednesday’s close could pressure recent longs and test the weak reference at Wednesday’s low, and potentially target the 2700 level and the top of the unfilled gap at 2692.50.

If the rally continues, visual references within striking distance to the upside include the botttom and top of the unfilled gap from 3/16 at 2745.25 and 2752.75, respectively.



(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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Inside Day, Questionable References Above and Below Range



inside day

Questionable references both above and below Friday’s range, which was an inside day; Friday’s high is one point below the prior day’s high, which was exactly at the late rally high in the profile chart from 3/14, and the 3/15 low (last Thursday) was at just a single tick above the unfilled gap from 3/8 at 2745.50.

Possible balance trading scenarios that could apply in relation to Monday’s range: Look either above or below Friday’s balance and either accelerate/find acceptance at higher or lower prices, look above or below the balance and fail – targeting the wide point of control, prior close, and potentially the opposite end, or remain balanced around Friday’s range.



(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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Poor Market Structure Both Above and Below the Current Market

S&P E-mini Market Profile Daily Chart, January 4, 2017

With short covering probably the motive for the rally to begin the new year, there is poor market structure both above and below the current market – multiple matching highs on the daily chart and a poor low from January 3rd’s market profile chart. There also remains the unrepaired poor structure from the December 7th elongated profile.

Thursday’s wide point of control (POC) could provide some clues to direction in the short term, acceptance above Thursday’s POC and above Wednesday’s close could see price initially test the prior high. Failure to find acceptance above 2263.50 could bring in sellers to test Wednesday’s low.

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