I'm new to the community and trading in general but I have taken 2 intensives with Jim Dalton and thought I could share what I think I (might) know in a journal (mostly for my own practice) and more importantly to meet others much smarter and more experienced than me who are also trading utilizing the profile, Jim's approach, or other complimentary strategies. This is a market recap as Jim would make. Feel free to ask any questions about terminology or concepts I'm putting forward. Please do not let any of my shortcomings be reflected on Jim's name. I am just a beginner.
Analysis is for ES.
Monthly hasn't let up at all, still one time framing strong
We ended the weekly bar with an inside bar. Always thinking balance and excess. Break out of balance with gap is excess. We go with break outs and most gaps.
In the daily bars you can see the balance in more detail that we had last week. The high today is weak because it tags the past high for this contract. There is high odds it will not hold in tomorrow PIT. We now have a new high in the electronic session.
The profile today was not elongated and market very sluggish. Volume was not overwhelming. NYSE composite at 3.25 mil. Day traders were clearly in charge of the market taking it exactly to the past contract high. They were able to hold the market right there but not enough to actually take new highs. The other negative side is we have weakness below. Two matching poor lows. Multiple poor lows exponentially raise odds of being taken out. Only one could mean a market is too long or short but multiple suggest the auction in that direction has not yet completed.
Using the profile and Unirenko bars (thanks to the Scalper's Journey) gave some nice and clear cut opportunities. On August 8th as we hit highs for the contract we then broke and began a short term trend to the down side. We need to be watching for this possibility tomorrow if we see continued weakness. We could also see new highs and momentum traders take it much higher.