Inventory adjustment occurs especially when the market participants goes too long or too short. Short term Inventory Adjustment will be realized in the market either in the form of short covering or long liquidation breaks. Understanding the Long Term, Short Term, Day timeframe inventory conditions will give the true edge from both the trader/investor perspective.
On Fridays trading session price opened lower though the trading sentiment on Fridays trading session is positive price maintained to close below thursdays pullback low reference. Value formed lower to overlapping and trading sentiment turned to negative despite one timeframing higher for 5 consecutive trading sessions on Daily timeframe.
Volume profile is a key study when comes to understanding the auction trading process. Volume Profiles will show you exactly how much volume, as well as relative volume, occurred at each price as well as the exact number of contracts for the entire session. It is a visualization tool to understand the high activity zone and low activity zone.
On Mondays trading session price is able to find a new higher equilibrium compare to the Fridays session as value is created higher and market sentiment too revived to positive mode despite Fridays negative close. Entire June trading session is so far in a compressed 100 point trading range between 9600-9700.
On Mondays trading session price is able to accept below the Spike base which we discussed on last preparation. Price was trading around the days open most of the time and also price was moving back and forth around the prev week low which is not a sign of high confidence selling on mondays trading session. Finally price manage to close above prev week low (9619.5).
Video log on how to prepare for 12th June 2017 Nifty future trading. Here is the quick summary of what is discussed in the video. From the Top down analysis monthly timeframe is up and trending higher not much weakness seen, weekly timeframe is up (sentiment is up as well) and also week range is very thin 85point range. However daly timeframe is in balancing mode for last 6 trading sessions as the volatility in the markets remains low.
One of the Patterns one have to watch out when there is a four day balance formation followed by a trending breakout. Breakout generally happens especially post a news event or a short covering despite strong negative sentiment, long liquidation despite strong positive sentiment.
I will be speaking at 42nd ATMA Bengaluru Educational Meeting on Introduction to Market Profile and will be sharing my trading experience on how to understand and apply in real life intraday/positional trading.
We had already wrote couple of tutorials on Market Profile which could improve your understanding about Market Profile and helps you to organize the market generated information in a better way than any other trader. This time we are inviting Ninjatrader Ecosystem partner Vinod (Founder – BellTPO) for a live discussion on the basic concepts of Market Profile and Trade Setups.
Interesting Development happening in Bank Nifty Futures on the daily charts. Bank Nifty Futures had broken the 15 days of consolidation movement with a strong breakout and also close below the bottom of the consolidation zone 18760. This post is to analyze whether the breakout is really strong or not. Market Sentiment is really negative and the last fridays sentiment continued on monday as well.
For many people price by itself not a key factor while making a purchase decision. No one will be buy a house or mobile phone just because of the price tag. Most of us understand the value (i.e offerings, features, benefits) before making any purchase decision and not solely based on product price. While making a purchase decision price is one of several variables which attracts buyers to evaluate when they mentally assess a product’s overall value.
Understanding who is dominating the market on a given day gives fair advantage and plays a crucial role in deciding trading strategy and executing the strategy at the better price. When the market participants behavior changes one can continually readjust his strategy and change his/her tactics depending upon who is in control.