Nifty futures on Daily timeframe formed excess on election results day. Excess is the end of one auction and the beginning of another auction. However last Friday there is a failure to follow thro post the Excess and ended as an inside bar and still, the focus on the excess setup remains invalidated.
Welcome to Market Profile Series. In the last tutorial we seen Poor High and Poor Low. In this tutorial we will be seeing couple of examples on Excess. Excess generally indicates end of auction and the start of another. Generally Excess is seen in the extremes of the profile with strong pullback as shown below. Excess occurs across various timeframes (Hourly, Daily, Weekly Charts)