The Market Profile value areas and ShadowTrader Pivots for /ESH21 and /NQH21 Futures are posted free every morning
in the ShadowTrader Swing Trader newsletter.
WindoTrader 702-800-4628 Speak with Terry about the ShadowTrader discount
| 3910.00 | Settlement 5x |
|---|---|
| 3896.75 | RTHRegular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. Low |
| 3887.75 | Overnight HalfbackA term for the halfway point between the high and low of any session, could be a day session or an overnight session. On Peter's market profile charts it is always a dark yellow horizontal line at tha... |
| 3880.50 | RTHRegular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. Low (2.18) |
| 3861.25 | ONLOvernight Low. A term mostly used for the futures market as it trades almost around the clock. To be precise, in the /ES this would be the lowest price between 4:30pm EST and 9:30am EST the next day. |
| 3855.75 | VPOCVirgin Point of Control. This is a point of control level that has not yet been tested (traded through) during an RTH session. If the POC gets tested during an overnight session, it does not count and... 2.4 |
Solid overnight gap lower on as investors focus on the continuing rise in bond yields. As of now we have a true gapThere is a lot of discussion as to what constitutes a gap. Is it measured to the prior day's close, or to the prior day's high or low. Here at ShadowTrader we believe that it is always and only to a p... which would put gap rulesGuidelines to follow on any day that the futures open outside of the prior day's RTH range. Only opening outside of range is a true gap and puts gap rules in play. 1. Go with all gaps that don't fill ... into play. Overnight inventoryA way of measuring overnight activity in the futures market by just noting how much of the overnight activity happens to fall above the prior day's settlement value (4:15pm EST close) and how much fal... is more balanced than current prices would imply. Still net shortThe concept of being more short than long in an options spread by creating options spreads where you are selling more structures than you are buying or selling wider structures than the ones you are b... but with plenty of activity above the settlement. As of now we are trading in the lower third of the overnight range.
Recent weakness has left two VPOC’s above us now. For the moment I see this as a market struggling under the weight of an overbought situation rather than all out weakness. There is no change in any trends as of yet. That being said, there is technical support for the further bear case as /NQ’s have pierced the 20maThe twenty period moving average, often discussed in the context of a certain timeframe such as 15 minute chart or daily chart. All moving averages discussed in ShadowTrader are SIMPLE and not EXPONEN... and are looking like they want to test their trendline as shown in the picture below. Note that this is in sharp contrast to the /ES which is tested the 20 at the ONLOvernight Low. A term mostly used for the futures market as it trades almost around the clock. To be precise, in the /ES this would be the lowest price between 4:30pm EST and 9:30am EST the next day..
The open will not be a slam dunk fadeWhen a stock moves opposite the direction of its gap on an intraday basis even with futures down 24 currently. Note in the market profileA way of reading the market that recognizes either time spent or volume traded at a particular price level. A market profile can be either made up of “TPO’s” (time price opportunities), or volum... graphic above how far off of the ONLOvernight Low. A term mostly used for the futures market as it trades almost around the clock. To be precise, in the /ES this would be the lowest price between 4:30pm EST and 9:30am EST the next day. we already are. That minimizes the shock and aweA term Peter uses to describe what overnight futures traders may be feeling when faced with an open that is wildly divergent from what they expected. Large gaps in either direction that are opening we.... I’m also carrying forward the 2.18 RTHRegular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. Low which prices are very close to currently. While that doesn’t have the same weight as moving past the RTHRegular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. Low of Friday, I am still seeing that from the perspective of less fear should prices trace back into that range.
Scenarios
-
- Gap rulesGuidelines to follow on any day that the futures open outside of the prior day's RTH range. Only opening outside of range is a true gap and puts gap rules in play. 1. Go with all gaps that don't fill ... are in play. We are quite a good clip off of the ONLOvernight Low. A term mostly used for the futures market as it trades almost around the clock. To be precise, in the /ES this would be the lowest price between 4:30pm EST and 9:30am EST the next day. and overnight inventoryA way of measuring overnight activity in the futures market by just noting how much of the overnight activity happens to fall above the prior day's settlement value (4:15pm EST close) and how much fal... is not 100% net shortThe concept of being more short than long in an options spread by creating options spreads where you are selling more structures than you are buying or selling wider structures than the ones you are b.... Thus there is diminished shock and aweA term Peter uses to describe what overnight futures traders may be feeling when faced with an open that is wildly divergent from what they expected. Large gaps in either direction that are opening we... on the open and the better trades will probably develop later rather than earlier.
- Use the 2.18 RTHRegular Trading Hours. In the /ES this means the price action from 9:30am EST to 4:15pm EST only. Low as a potential go/no-go level for further short covering as it would represent a move back into a recent trading range. Monitor for continuation and target the O/N HalfbackA term for the halfway point between the high and low of any session, could be a day session or an overnight session. On Peter's market profile charts it is always a dark yellow horizontal line at tha... first.
- As gap and go scenario (continued downward pressure with very little short covering) will have difficulty finding any 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 tr... back within range today and will only fill the gap partially or not at all. Look for no opening drive higher or an opening drive higher that fails immediately and revisits the opening print. Shorts can be taken there with stops above HODHigh of Day. Note that continuations from larger gaps are the most advanced type of market play and should be attempted by those more seasoned in day timeframe trading.
The Best Market Profile Software on the Planet (mic drop)
Add the 3rd dimension to your charting with WindoTrader, the industry leader in Market ProfileA way of reading the market that recognizes either time spent or volume traded at a particular price level. A market profile can be either made up of “TPO’s” (time price opportunities), or volum... software
10% off ShadowTrader Discount
