Measuring Short Term / Intraday trading inventory is the most underrated topic and very few market profile practitioners understand the importance of Trading Inventory and follow it religiously.
E-mini S&P 500 future derivative contract is based on the underlying S&P 500 stock index(US Market). ES-Mini is showing an interesting structural pattern when comes to market profile with trend reversal odds. The structural pattern also reveals the significant risk in holding to the longs as the short term inventory goes long to too long.
How do we understand that smart money is getting out of their shorts? and how the dumb crowd get trapped into it? Here is the high probable trade setup using market profile which explains the context of inventory getting short to too short and the potential risk in holding trade in line with the emotional players.
Nifty Futures on Wednesday trading session exactly respected at the Tuesdays prominent POC and also selling continued at days open. Day ended with a spike with a poor structure combination indicating a potential pullback towards 10540 levels as the short term trading inventory goes short to too short. Current swing low is not secured yet (will be revisited in a very shorter term).