Debriefing 22nd June and Todays Journal

Debriefing 22nd June and Todays Journal

June 23, 2022 0 By The Balanced Trader

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Thursday’s Data

Wednesday’s Market Profile Debrief

P-Distribution, Short Covering, OUTSIDE DAY, In-balance Balance rules apply need to see volume.

H: 3805.5 L: 3719.25 VPOC 3785 VWAP 3772.25 SETTLE: 3760.75

MONITORING 3760 (settle), 3745(spike singles), 3720 (yLo)and 3785 (yVPOC)

Yesterday’s Price Action Review

Yesterdays ON session saw a complete reversal of the short covering rally on Tuesday that had left a large gap to the Friday high of 3711.75 (Monday was a holiday counted as ON). The ON decline into the EU open was persistent and did not let up until support was found just above 3693 last week’s lower distribution VAH 3691. I think it’s really important to review the weekly profile when starting a session and analysing the bigger picture.

[Many were calling in bottoms which may be the case but there is no excuse for chasing short-covering rallies that remains weak. Tuesday Auction never managed to close above the prior week’s HVN at 3775 and close week. ]

The auction pushed up into the RTH handover 3724 (Important look at weekly HTF sheet) just above the Friday Gap. The RTH open above the prior week’s pivot area 3712-3723 was an important area for buyers to hold on to as any push below 3712 would liquidate more longs accumulated post-Friday close. More importantly, we were opening out of the prior day’s range ( yLow 3735), an open gap out of range and gap rules apply. Would buyers attempt to close the gap and trade back inside yesterday’s range?

It didn’t take long to find out the answer, another responsive open much like Tuesday but the response temporarily stalled at the previous day’s low 3735 before eventually driving higher again. Buyers pushed the auction higher up to the VAH 3798 of the upper distribution of last week’s DD before a PB to the IB mid. One final late push and look above the IB to create an Outside day with a high 3805. A peculiarly similar P-distribution to the prior day’s RTH session. PA into Settlement was weak trading to settle 3760.75.

You need to be looking at your HTF charts to have any chance to build a picture and understanding. We are inside monthly lower distribution HVN. Which is characterised by the last weeks Upper and lower distribution HVN acting as the VA LO and Hi. PA in between is fast and fluid as you would expect in balance.

P-Distribution, Short Covering, OUTSIDE DAY, In-balance

H: 3805.5 L: 3719.25 VPOC 3785 VWAP 3772.25 SETTLE: 3760.75

MONITORING 3760 (settle), 3798 & 3745(spike singles), 3719(yLo)and 3785 (yVPOC)

Wednesdays Open

TIP: We are in balance and that means don’t expect much more than a ping pong effect on either side of the net

ON Update

Continuing with peculiar, very similar ON behaviour with longs liquidating below the upper P-distribution.

US PMI DATA

Monitoring

ON Lo 3735

ON H 3797 ON L 3735 ON VPOC 3763 VWAP ySETTLE 3760

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Quote Of the Day

Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.  – Michael Jordan

Trade Well And Prosper.

BT