I was just wondering if someone could please tell me if i'm heading in the right direction. How do you identify "balance areas" on the day time frame? Am I right in the chart below? It's from the ES on Monday August 15. We one-time frame up for four 30 minute periods and then hit a stopping point, pulling back. We form an area where two sided trade occurs. So, the scenarios now (ignoring long-term context and just thinking on the day timeframe.....) 1) Initiative buyers (on the day time frame) take control, we breakout from 2190.75, pullback and head higher 2) We breakout from 2190.75, fail to build volume and acceptance, and responsive sellers take us back to the VPOC of intraday balance and possibly to the balance lows 3) Initiative sellers (on the day time frame) take control, we breakdown from 2188.75, pullback and then head down to the VPOC of the up move and possibly the low of day (unlikely given the bullishsentiment) 3) We breakdown from 2188.75, fail to build volume and acceptance, and head back to the intraday balance VPOC and possibly to the balance highs 4) We continue to rotate and build volume + acceptance in this tight range for the rest of the day. Image attached below. Thank-you for your help. Times are in EST. RTH only. Tom
IMO it was an extremely basic day, not much analysis to be had, at least on that bar interval. I'd be wary of over-analyzing it. For me it was a pretty simple two-legged day, initial change in sentiment was gradual and then picked up pace into EOD.