Here is today’s volume profile chart of the Nifty Future.
When the market comes off a balanced profile on a normal day, with a range extension that fails, there are enough clues for the market profile student that the previous range would be tested and the longer time frame participant is trying to exhibit control.
Viren commented in the comments as early as 10.00 in the morning that the range of the past two sessions would break.For the rest of the day, it was only a matter of which side the break would come.
Since we had a balanced profile the previous day, the market had not tipped it’s hand hence it was necessary to watch the previous days values especially the point of control, to see buyer/ seller influence.
Accordingly we lay out two possibilities an auction above POC and an auction below POC, based on the info the market was providing.
As can be seen from the ovals, the market auctioned above POC in the first half and sustained below POC in the second.Then it was just a matter of time before the levels of 5374 and 5355 were met, considering that we knew early on that it was going to be a wider range day.
For tomorrow, notice the POC of today’s profile has not moved down a lot from the previous POC, hence we can expect a move back to it in the first session.
Watch value areas at 5363-5382-5401 ( volume profile)
and listen to the message of the market.
I will be out in meetings tomorrow and may not be able to post. Have a great trading day.