We got a P shaped profile in today’s market. The P shape came after a balance in last week’s value area. The Market Profile Guru Pete Steidlmayer considers a balance, then a P ( or a b) to be the starting point of a new move. Today was settlement day and it is always a day when old business is closed. Hence we look to see tomorrow, is there is a new move coming.
Nifty Dec F:
Background / Previous Auctions :
Weekly levels: We have done a review on weekly charts at: http://vtrender.com/nifty-bn-weekly-view-spot-for-23-nov-27-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The NF was a Normal Variation day with a P shaped profile
#) Vwap of the session was at 7911 with volumes of 92.1 L in a session which traded a range of 7939-7866 of 72 points
#) Day POC was at 7910 levels
#) The profile is projecting a right time for new business to enter tomorrow and make a directional move.
#) Value areas are at 7928-7910-7908– for the session tomorrow. For using value areas effectively visit:http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
(based on Dec F)
K.R.A is 7952 ( K.R.A= key reference area)
Hypo1 ) If NF auctions above 7959 it could move to 7988 and 8008. SL for this view is 7915
Hypo 2) IF NF auctions below 7911 it could move to 7886 and 7817. Sl for this view is 7957
BankNifty Dec F:
Background/ Previous Auctions :
Weekly levels: For Banknifty we have updated a spot auction view with a chart at: http://vtrender.com/nifty-bn-weekly-view-spot-for-23-nov-27-nov15/
Observations in Today’s/ Previous sessions:
(based on Fut prices)
#) The BNF was a normal day
#) Vwap was at 17150 with volumes of 14.8L in a session which traded a range of 17186-17098 of 89 points
#) day POC was at 17154 levels
#) Excess at 17412 on charts
#) Excess at 16854 and 16700 also remains.
#) Larger structure is hinting at a neat balance between these 2 excesses.
#) Value areas are at 17166-17154-17136 for bias. . For using value areas effectively visit: http://vtrender.com/popular-market-profile-trading-setups/
Hypothesis :
( Based on Nov Futures)
K.R.A is 17345 ( K.R.A= key reference area)
Hypo1 ) IF BNF auctions above 17206 it could move to 17270 and 17320. Sl for this view is 17110.
Hypo 2) If BNF auctions below 17150 it could move to 17050 and 16970. SL for this view is 17255.
All Hypos to be traded with the mentioned stops and mechanically. If in the trading room, can use the Order Flow to qualify the entry and exit for the hypos.