Today's action...where might it lead?

[TinGull 10]

Today's action was kind of slow, then mediocre...then slow....

 

Looking at the profile and its auction rotations, what can we see? At first glance, we have a "b" shaped profile. Long liquidations you may ask? Well...could be. BUT, notice the A, B and C periods...we drove down sharply from the open, never to return, and churned a bit until the D period came. At that point, the lows of A/B/C were taken out, and even E took out the low of D. This was some new short blood in the market today! Longer time frame investors are driving prices lower.

 

Also, looking at a daily chart of the YM you can see that yesterdays little pullback was on lighter volume than the two down days surrounding it.

 

So...Where do we go? Market's will go where they want, but knowing the other time frame investor is not seeing the value in the market at the highs it's been at, we can start to think we may be in for some more selling next week.

 

Happy trading!

[TinGull 10]

Also to note...TPO count for today was 205/183. Favoring sellers again.

[Soultrader 12]

Nice chart Tin. I wasnt around today but just took a peek at that MP chart. Very interesting to see price rejection at 12531. I remember on Thursday we saw a late afternoon rally just to see price rejection around 580 and a push back towards 550 level. With this information today (rejection at 531) we are seeing serious seller domination.

 

Another 100+ range day. Very interesting. I think for day traders, we will be seeing alot more trend days to the downside from now on. Just my humble opinion.

[TinGull 10]

I'm with you on that assumption Looking forward to next week!!

[ant 10]

Hi TinGull, I've been enjoying reading your MP analysis! Hope you keep it up.

 

Although I don't trade the YM, I thought I'd post the longer-term support/resistance levels in the YM to go with TinGull's analysis. High volume nodes and low volume areas both serve as support/resistance but for different reasons. The chart below is a composite profile of the YM from Oct. 12th until today's trading. The red lines are high volume areas and the yellow lines are low volume areas (note that these are areas/regions and not single prices). High volume nodes should slow down price giving the trader an opportunity to monitor price action and enter/exit a trade. Price action around low volume areas should be more swift - bouncing off of a low volume area or trading through it. If price is accepted in a low volume area (i.e., overlapping TPOs), the market might try to fill in this area surrounded by HVNs. There are well-defined key reference areas above and below the closing price of the YM. Additional reference points can be identified from the market structure (i.e., the daily profiles form the last few days). We'll see if enough selling comes into the YM to break below the support area right beneath it.

[TinGull 10]

Thanks ant, and I definitely will be keeping it up

 

And yes, if we can break through that area...here we come 300! Aren't bearish times more exciting than those bull days of yesteryear?

 

Thanks for the volume profile, definitely appreciate it!

[MrPaul 10]

Thanks ant, and I definitely will be keeping it up

 

And yes, if we can break through that area...here we come 300! Aren't bearish times more exciting than those bull days of yesteryear?

 

Thanks for the volume profile, definitely appreciate it!

 

fear is more fun to trade than greed:cool:

[TinGull 10]

Heck yea it is

[rickv 10]

Ant,

The composite profiles that you show - what MP program allows for you to do this within Trade Station. I have been looking to be able to combine these - I trade more of the ES than YM and would like some insight on this rendition of the volume composites.

[ant 10]

Ant,

The composite profiles that you show - what MP program allows for you to do this within Trade Station. I have been looking to be able to combine these - I trade more of the ES than YM and would like some insight on this rendition of the volume composites.

 

rickv, see PM.

[TinGull 10]

Bam. MP led the way again. Having some more selling take place this morning, and by the looks of it, we'll keep around here or head a bit lower. Possible to the 375ish area based on recent range activity.