[TinGull]

Today was an absolutely perfect day in all respects. Had nice up moves that were signaled, and a HUGE down move that was signaled loud and clear by the MP structure. In this screenshot of the YM notice how the C period couldn't overtake the B period for an upper range extension. Then...the D period couldn't take over the C period. This makes it evident that longer term sellers are getting their footing in the markets. E period would've been a great place to get in, while on the charts we had a lower high forming right under R2. Gave a nice entry point.

When you see things starting to form like this, its great knowledge to have. Like looking inside the Matrix. Auction periods not being able to overtake the previous period is definitely something to watch for.

[Soultrader]

Nice one Tingull. I sense a market profile expert in the making?

[TinGull]

Thanks Soul. We'll see about the expert thing. HA! It's definitely something that I'm going to make a huge part of my trading life.

[TinGull]

Other things to watch out for...

On the 30 day volume profile we've breached outside of the value area. We're nearing the all time highs of 12650 area. With this sort of imbalance and lack of volume to the upside, especially compared to right below us in the 12550's, will we remain up here?

To paraphrase Mind Over Markets...it takes time to validate new levels. If we're going to stay in this area, volume really needs to catch up. Otherwise, people aren't going to see the point in staying up here if the value is seen below us, causing us to fall a bit more.

Notice, too, on January 3rd we opened outside of this value area. This was a good "Value Area Rule" trade where we opened outside of value, poked down into value and built multiple TPOs only to cruise through that value area for 150 points or so.

So...while today we found balance outside of the value area, looking at a larger time frame as we are we can only put so much validity on it. If we break back into the 580's tomorrow...that would spell potential trouble for this bull run.

Something to watch for