Short

US 500: A Volume Profile Analysis - 09th / 13th May, 2022

Updated

Price has closed last week at the (VAL) suggesting further expected bearish trading activity for this week. The fact that the two-days value area relationship show a lower value, supports this suggestion.

My trading idea focuses on being short next week, but I would wait for my new opening price, and a session high and low (Registered by the first - 4 hourly - four candles) to further confirm my trading activity.

Now, I will wait and see what happens, as my trading activity starts at 14:00 (GMT) on 09th May, 2022.

Note

Note

The Open @ 4101.1 and the Session High for this week @ 4104.9 seems to be well established. Now, I'm waiting for Session Low to form.

Currently price is testing the 13th May, 2021 low (Support Line) @ 4035.6 where I expect Responsive Buyers to act and drive price back to this week's open price.

Let's see what happens

Note

Now that we have our session low, it's time to look for a trade. It seems as we are looking at a bearish scenario - this doesn't mean that surprises can't happen. So, if I was thinking of going short, I would target two places to initiate my short position:
1. The Opening candle @ 4101
2. The session Low @ 4036 (If it was taken out)

Note

If the Breaching of the 13th May, 2021 Support Line is sustained, we may consider entering a short trade at the (VL) with stop loss at the Session High. I will publish the targets later.

Remember: This is now a plan and not an official trade yet

Note

I'm a bit skeptical now that a breach of the 13th May, 2021 would be successful. I might even shift my preference to a Loong trade.

So, in order to do this, I would like to see price successfully breach this week's session high to consider going long.

Let's wait and see.

Note

Original Preference is at play. We have a close below the 13th May, 2021 Support level. This may be a good lesson for everyone to not be hasty before a candle closes.

So, we will go short @ 4060 with a stop loss @4110. We may target the VVAH level @ 3980 initially

Note

We can also target a riskier Session Low @ 4035 for a short trade

msrozba

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