Replies to post #38724 on The TradingEdge

[jxyzobrien]

market profile defend the open
(open nunance)
So the market gaps up and then adjusts to too many longs.

The normal market tries to return to the the open and then rally.
The 2nd time failure thru the open forces longs to sell
and this is psychologically devastating as longs watch all their
profits go from positive to minus.
Longs do not immediately sell instead look for hopium (i hope it goes back up) and finally sell when they have to.
your chart below

[jxyzobrien]

market channeling up
Market made a higher high and no new low. This is the 3rd time
also. I believe we still see lower prices. So sideways chop
and flush seems to be pattern. charts at 9am

[jxyzobrien]

value area red green
market trading in balance so it will try to get to green line
or pullback to red line and then rally.

when a market enters a value area from below it tries to rally
to the top.