F-Forex, Diary of a quant forex trader

Out of bracket lows

When a break of a bracket to the upside is denied as we saw a few days ago the market will go to lower extremes fast. The same is true in the lower extreme of the bracket. The market don’t have enough fuel to get lower so it gets up with strenght. The market opened in the 1120 levels and closed at the end of the day in the 1160. We don’t know if 1160 was accepted as the market didn’t had time to form volume.

1158.00 m
1157.25 m
1157.00 m
1156.50 m
1155.00 m
1154.50 m
1154.25 m
1153.75 m
1153.50 m
1153.00 m
1152.25 m
1151.50 m
1151.00 m
1150.75 m
1150.50 m
1149.50 m
1149.25 l
1149.00 lm
1148.75 lm
1148.50 l
1148.25 m
1148.00 lm
1147.75 lm
1147.50 l
1147.00 l
1146.75 l
1146.50 l
1145.75 l
1145.50 l
1145.25 l
1144.00 kl
1143.75 efk
1143.50 k
1143.25 ek
1143.00 efk
1142.75 ek
1142.50 efk
1142.25 ek
1142.00 fk
1141.75 afg
1141.50 fgk
1141.25 efgjk
1141.00 efgjk
1140.75 efgk
1140.50 ag
1140.25 0fgj
1140.00 aefgj
1139.75 efgj
1139.50 fj
1139.25 adefjk
1139.00 afjk
1138.75 aej
1138.50 adj
1138.25 adej
1138.00 ad
1137.75 adgjk
1137.50 dgj
1137.25 aegh
1137.00 ej
1136.75 adg
1136.50 dgi
1136.25 dgj
1136.00 adghi
1135.75 agi
1135.50 dghi
1135.25 aghj
1135.00 adhi
1134.75 adi
1134.50 hi
1134.25 dhi
1134.00 dhi
1133.75 chi
1133.50 ach
1133.25 achi
1133.00 adhi
1132.75 chi
1132.50 dhi
1132.25 chi
1131.75 abc
1131.50 ab
1131.25 c
1131.00 b
1130.50 b
1130.25 c
1130.00 bc
1129.75 bc
1129.50 b
1129.25 bc
1128.75 bc
1128.50 bc
1128.25 bc
1128.00 c
1127.75 b
1127.50 bc
1127.25 b
1127.00 b
1126.75 b
1126.50 bc
1126.25 b
1126.00 bc
1125.75 bc
1125.50 b
1125.25 c
1125.00 bc
1124.75 c
1124.50 b

Tags: bracket highs, bracket lows, bracket trading, Market Profile, range trading, responsive traders

Normal distribution in lower extreme of bracket

Market hanging in the lower extreme of the bracket. In here to get lower we need more bad fundamental economic news to fuel more downside move. As this didn’t happened today the market is hanging in the extreme forming a double distribution.

1135.25 j
1135.00 j
1133.75 ij
1133.50 j
1133.25 i
1133.00 dij
1132.75 d
1132.50 ij
1132.25 j
1132.00 j
1131.75 ei
1131.50 dijm
1131.25 dfim
1131.00 dijm
1130.75 dem
1130.50 fjm
1130.25 defgi
1130.00 fjm
1129.75 djlm
1129.50 cefl
1129.25 cdfilm
1129.00 cfgjlm
1128.75 cdejl
1128.50 dfg
1128.25 efgiklm
1128.00 cdefgilm
1127.75 defgjk
1127.50 afgklm
1127.25 cdegijklm
1127.00 adefgijkm
1126.75 defijkl
1126.50 adefgjl
1126.25 cdehijklm
1126.00 befghikl
1125.75 bcehk
1125.50 aeghjkl
1125.25 ghk
1125.00 eghi
1124.75 aghik
1124.50 abchi
1124.25 ckl
1124.00 abchk
1123.75 ach
1123.50 agh
1123.25 acgk
1123.00 bcgl
1122.75 bc
1122.50 h
1122.25 abch
1122.00 abch
1121.75 a
1121.25 c
1121.00 ac
1120.75 bc
1120.50 ab
1120.00 b
1119.75 b
1119.50 b
1119.25 ab
1119.00 ab
1118.75 ab
1118.50 b
1118.25 a
1118.00 b
1117.75 a
1117.25 ab
1116.50 b
1115.75 a
1115.00 0
1114.75 a
1114.50 a

Tags: bracket extreme, bracket trading, Market Profile, normal day, normal distribution, range extreme, responsive traders, responsive trading

Responsive traders

The Market opened at 1200 levels, then went down to the 1190 levels but this lower value was quickly rejected in the morning. Market moved 10 handles to the opening point and then moved 10 handles more to the upside at 1210 area. In the 1220 area we have the intermediate bracket higher extreme, this bracket is formed after the US debt problem and downgrade of investment rating to this country from S&P and others. Is an important bracket and it needs fuel to be broken. This fuel is good economic data, we are really not under those conditions right now, in fact the situation in Europe is not good and the 0 jobs creation in The US from August don’t help either.

So, responsive traders got in the market when it was trading at 1215 and moved the market down to 1200 area again where the market formed value and closed for the day.

Tomorrow the FED announcement could be the fuel we need to break up if they release good news.

1214.00 dh
1213.75 d
1213.50 deh
1213.25 defj
1213.00 dehij
1212.75 defhij
1212.50 deghijk
1212.25 defghi
1212.00 defghij
1211.75 defghjk
1211.50 defghj
1211.25 defghij
1211.00 efgij
1210.75 efgi
1210.50 defijk
1210.25 fgi
1210.00 cfgij
1209.75 cfgj
1209.50 cfgjk
1209.25 cgk
1209.00 cgk
1208.75 cgk
1208.50 ck
1208.25 cgk
1208.00 ckl
1207.75 ck
1207.50 k
1207.25 ckl
1207.00 k
1206.75 ck
1206.50 k
1206.25 ckl
1205.50 l
1205.25 c
1204.75 bc
1204.50 bcl
1204.25 c
1204.00 cl
1203.75 ab
1203.50 acl
1203.25 bl
1203.00 l
1202.75 0l
1202.50 abl
1202.25 l
1202.00 bm
1201.75 abl
1201.50 alm
1201.25 blm
1201.00 ablm
1200.75 ablm
1200.50 blm
1200.25 blm
1200.00 a
1199.75 ablm
1199.50 m
1199.25 m
1199.00 l
1198.75 a
1198.50 abm
1198.25 b
1198.00 abm
1197.75 a
1197.50 abm
1197.25 bm
1197.00 am
1196.75 am
1196.50 am
1196.25 am
1195.75 a
1195.50 a
1194.75 a

Tags: braket extreme, Market Profile, response traders, responsive traders