Our daily TPO profile graphic for 15Mar.
This graph shows weekly distribution (right) development at/near the upper quartile of the monthly distribution (left) following the breakout above structural resistance, 92s, and buyside phase.
This graphic reflects the major structural resistance at/near 93.80s, micro support at 93.20/.10s, and the major structural support at/near 92s. Insight into the significance of these levels was key in the 18Mar auction.
Our daily statistical study plotting key reference levels/price action for 15Mar and projected statistical levels/inferential analysis for 18Mar.
Following Friday’s failed Gap Open Higher, the market auctioned lower during Sunday Asia session toward the Avg Daily Range Low, 92.41s, achieving a Stopping Point and balance there, probing the low, and auctioning toward the 1st Std Dev Low, 91.80s, before eliciting a buy response.
This level coincided with the key structural support (noted in TPO profile) and the buyside rejection of that level indicated an important shift in the market condition in the day timeframe. The short covering rally had begun.
Knowledge of the key structural development of Friday (Gap Open Higher failure) informed our subscribers to the potential buyside inventory imbalance and subsequent asymmetric risk (long positions in this case) at/near the high.
This knowledge coupled with the structural and statistical levels based on market generated data, not opinion, provided the context necessary to align trade with the dominant market participant (in this case sellside) and insight into where such activity may be shut off (in this case the Daily 1st Std Dev Low/Structural Support).
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