A framework for analyzing a spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. on the next trading day after it is formed.
Because the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. forms late in the day, it is impossible to gauge whether or not the higher or lower prices that have run quickly away from value will be deemed fair later. Thus we employ the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. rules in the next session.
Everything below is assuming a spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. at the TOP of a daily range (reverse for a spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. at the BOTTOM of a range)
-If prices open above the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range., that is considered bullish and tells us that prices didn’t auction high enough in the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. to attract sellers and cut off buying activity. Monitor to see if there is acceptanceWhen the market profile begins to build out or develop in a certain area, it is said that the market is accepting those prices. This can be measured either in time spent or amount of volume that is transacted. It is generally understood that ShadowTrader defines acceptance as more of a time dynamic than a volume one. A good rule of thumb is to look for at least two TPO periods to print in the accepted area. The acceptance confirms that a significant amount of market participants are transacting at those levels. Acceptance is the opposite of rejection. above the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range..
-Prices opening within the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. confirm the higher prices of the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range.. This tells us that the prices are fair enough for two sided trade to again start to take place.
-Opening below the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range. is more bearish and is considered a rejectionPrices are rejected when they move away from a key area quickly in the market profile. For example, let's say that futures open below the value area and start to rise towards it. Upon breaching the low of the value area, they rise just a couple ticks higher and then fall quickly back out of the value area. That's rejection. Rejection is often noted when prices move into "make or break" areas such as an ONH or ONL or prior day's RTH high or low from outside of those areas.
Rejection is the opposite of acceptance. of the higher prices in the spikeA set of single prints that are created in the last 30 minute session of the day which form at the top or bottom of a range.. The prior day could then be characterized as having a selling tailA single print column that appears at the top of a market profile structure. The tail is usually made up of at least three or more TPOs. It is formed as a result of buyers drying up and not being present in high enough numbers to continue to move prices higher once they have risen to an area that market participants perceive as an unfair high for the session. As the lack of buyers brings a strong imbalance of selling activity in reaction to the low price levels, prices quickly reverse lower, leaving the single print tail in their wake. It should be noted that these areas usually include the taper of volume in the futures market as volumes at each price level get less and less the closer you get to the top of the tail..
