The range could be projected from yesterday's hourly price action (white range) or from the institutional time frame (15 min) price action (yellow ranges). Ranges generated by a multi time frame indicator accessing 60 min and 15 min data series.
There was small uptrend during the European morning, than after the noon break, it reversed.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
The following 2 users say Thank You to Fat Tails for this post:
That's interesting to look at your chart more specifically if i compare it to the chart i posted. They are similar but the visual cues are different or the attention-getting lines play differently at least from my point of view. To some extent, it is as if i was looking at two different charts.
I would rather think that the 30 minutes interval is the 'institutional timeframe' since Market Profile is based on 30 minute brackets and the MP tool seem to be used by big player more than a specific interval. But that is more of an impression and my common sense expressing itself.
A lot of it is about context what occurred prior provides us with key information when we revisit those areas. The market has held considerable levels of short inventory in the June contract and we have seen short covering as market participants unwind their short positions as we enter into a new quarter. I recall Jim Dalton saying that short covering takes a few days to unwind and until then it is difficult to determine if new buyers have entered into the market. Yesterday was an inside day as the market contracted – low volatility, so it is a case of waiting for new information to emerge.
The following user says Thank You to Trafford for this post:
This is certainly a bit arbitrary. In the literature and in blogs this timeframe is often referred to as the institutional timeframe, as traders with large positions cannot trade 1 or 5 min charts. actually, it is more like a threshold: Traders that trade large positions will of course use the larger timeframes such as 30 min or 60 min as well, and just use the smaller ones for executing the orders via appropriate algorithms.
Day traders typically trade smaller timeframes than 15 minutes and may exploit the behavior of the larger market participants.
The following user says Thank You to Fat Tails for this post: