The market remains in a state of consolidation. The longer a consolidation lasts, the more significant the move out of it tends to be. The primary goal of buyers is to protect the monthly one time framing up.
Likely a stupid question. But I get confused when you say something is a poor low or a poor high. If something is a poor low are you saying it’s strong support and likely won’t be breached and can possibly cause short covering ? And a poor high is strong resistance and can cause liquidation? If so , why is a strong support , a poor low and strong resistance a poor high?
Poor highs occur as a result of weak-handed buyers becoming trapped, which prompts an initial pullback or liquidation away from the area. This shakeout is intended to eliminate the weak-handed buyers and possibly attract stronger buyers at lower prices, ultimately allowing for the repair of the poor high. The poor high is not a form of strong resistance; rather, it represents an incomplete auction. Strong highs/lows have excess.
As of late, there have been numerous poor highs formed, indicating that buyers are weak and a more extensive liquidation may be necessary to locate stronger buyers.
You for the explanation. Much appreciated. As for excess, does that indicate more selling at bid side vs buying at offer side ? Or am I confusing that with a delta calculation?
Excess is often known as buy/sell tails, referring to single prints found at the edges of a profile. Excess marks the end of one auction and the beginning of another.
Thank you for the advice, already reading that. Love dalton books. I was just trying to put all the puzzle pieces together, to see it all work in real trading. Where do I go from here? I really like his sierra chart books
Hey Bmf, you may be interested in Jim Dalton books on Market Profile. A lot of these concepts are explained there. I'd recommend pairing those books with Smashelito's daily analysis. Smashelito's summaries are extremely helpful and more nuanced in their explanations and with the delta and footprint charts.
Likely a stupid question. But I get confused when you say something is a poor low or a poor high. If something is a poor low are you saying it’s strong support and likely won’t be breached and can possibly cause short covering ? And a poor high is strong resistance and can cause liquidation? If so , why is a strong support , a poor low and strong resistance a poor high?
Thanks very much
Poor highs occur as a result of weak-handed buyers becoming trapped, which prompts an initial pullback or liquidation away from the area. This shakeout is intended to eliminate the weak-handed buyers and possibly attract stronger buyers at lower prices, ultimately allowing for the repair of the poor high. The poor high is not a form of strong resistance; rather, it represents an incomplete auction. Strong highs/lows have excess.
As of late, there have been numerous poor highs formed, indicating that buyers are weak and a more extensive liquidation may be necessary to locate stronger buyers.
Thank
You for the explanation. Much appreciated. As for excess, does that indicate more selling at bid side vs buying at offer side ? Or am I confusing that with a delta calculation?
Excess is often known as buy/sell tails, referring to single prints found at the edges of a profile. Excess marks the end of one auction and the beginning of another.
Thanks again
Please consider a course. It would really provide huge value to your community, combined with your sierra chart book. Please consider. Thank you 🙏🏻
Thank you for the advice, already reading that. Love dalton books. I was just trying to put all the puzzle pieces together, to see it all work in real trading. Where do I go from here? I really like his sierra chart books
Pick up "Mind Over Markets", get a notebook, pen and treat it like a university course.
Hey Bmf, you may be interested in Jim Dalton books on Market Profile. A lot of these concepts are explained there. I'd recommend pairing those books with Smashelito's daily analysis. Smashelito's summaries are extremely helpful and more nuanced in their explanations and with the delta and footprint charts.
Amazing analysis as usual. Incredibly tricky market. We keep on hanging over 200 sma without any clear resolution
Awesome work. Thank you 😊