The market profile is a methodology of trading, not an indicator, and interpretations made from the system are individual in nature i.e different people will interpret the same chart differently ( as in all charts). It is not a predictive tool, but used to interpret market action, using volume, price and time.The observations posted by me through the market profile are my own and I could be wrong.
With that off, let's start by looking at the charts.
It always is difficult to come back and look at charts after a trading holiday and even more so when other world markets are functioning.I wonder when the NSE would have a 24 hour futures market--it will take so much of the dis-connect away, especially with all the added holidays we have in this part of the world.
The chart shows a close in value, at POC, indicating balance being restored in the markets after the gap down on Monday. The chart also shows sellers having failed miserably for the second day in a row to keep prices below 5220.Infact it is the third time that prices below 5205 were rejected swiftly and this only points to higher prices ahead. So keeping our range of 5220-5272 in mind, a test of 5272 should be next. We'll see..
The Bank Nifty is a stronger looking chart and points to a big move tomorrow as prices have coiled within a smaller value area. I will be looking at this chart as an indicator of market direction tomorrow. I foresee a big breakout.
It's expiry tomorrow, besides the return from the holiday. So a lot of moves may not make sense. So stay light, stay smart tomorrow.
Posts
7 comments:
viren, Good day,
I have squared off my positions, will enter only on fresh series. So, being in position is not the reason for this query.
I wished to know why VAH is 5234
and VAL is 5217 when bigger bars are nearby to 5237 & 5220 respectively [as in chart here] ?
[My quoteTracker does not update data properly for Nifty so I am not able to experiment on that, so donot know]
with regards...
Also, can i ask you to put up this chart every EOD, even if you happen to be busy to make a writeup.
Thanks.
Mok,
GM.
The value area lines( VAH & VAL) encompass 70 % of the traded volume of the day.Hence they by themselves as bars do not signify anything.
The POC will alsways be between these lines and these and the other vol lines in btw value constitute the major traded volume.
w.r.t ur second query, I'll surely do so.
Long at 5217 expectingh pre-market assessment to play out.
Sl 5197. Will add/ reduce at 5234 ( depends on how it plays out)
Banks have opened weak and below value.I'll try to be a buyer at 9220 depending on the tape. Will update
Just to clarify...I'm still trading March future values.
I would have been better served with April future.
let's book out at VAH here at 5235.
Post a Comment