My ramblings on support and resistance, supply and demand are even making me nauseous so I figure I will try to enhance my trading prowess but looking at something that sums up volume at various price levels. Specifically I want to see the amount of trading activity (volume) transacted at the area of support and resistance defined by the all knowing PnF chart. What I am looking for is to see if the amount of volume transacted at specific support and resistance levels has any significance in the strength of those levels. I suspect they do. Therefore, my research (google search) has lead me to the Market Profile indicator (I hate the word indicator). So I will do my due diligence and read books on it, search websites on those that claim to be experts and mock them along the way but the end result should still be valuable. Studying is always valuable so do more of it.
As for the markets, well it looks like we hit a low of 1627 on Tuesday before bouncing and continued the rally today. We were looking at the 1625 area as we mentioned in our previous post after that nasty high volume drop on Monday so please forgive me that I was not pin point accurate. I have to say that the current two day rally has not been overly impressive. Tuesday's recovery rally clearly showed demand coming into the market but today's lackluster rally on lower volume and close slightly lower then the middle of the trading range does not buoyed well for a continued rally.
So lets wait and see what happens.
No comments:
Post a Comment