Here are two interesting and similar trading setups which help positional traders in spotting very high probability and very high risk-reward ratio using market profile. this tutorial explains how to understand the context of High probability trend exhaustion using short-term inventory conditions and the exponential trading odds with lower risk trade setups
Yet another 3 day balancing and slowly moving unproductive days for a positional trader in Nifty futures as it trades in 10360-10420 range for the last 3 trading sessions. Interestingly stops again got built around 10420 post todays panic intraday drop towards 10360 levels.
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.