Inventory Imbalance

[TheDude 10]

Hello All,

 

Firstly, I'd just like to say as my first post, what a great resource of Market Profile information this forum is. Thanks to everyone who has contributed, esp Frank. I've been lurking for a while....

 

Reading Dalton, he often talks about inventory imbalance, and how key it is to anticipate possible trades. Understanding the various time frames inventory/position is simple enough, but how does a trader identify an imbalance (logical trade idea), and prepare for a potential inventory correction before it happens (timing)?

 

I thought of the commitment of traders reports, but that data is only released once a week, and is too 'old'. I don't think average TA levels will suffice such as support/resistance - as I see those as trade signals, not really a need to rebalance inventory; such as that required when the margin clerk walks up to your desk and taps you on the shoulder! :crap:

 

Thanks for any insights....