Open Rejection Reverse - Trading Glossary

Open Rejection Reverse is when the market opens and auctions in one direction to only be quickly rejected and reverses the other direction. This is very similar in appearance to an Open Test Drive (OTD).

This is a trading glossary term series of blog posts. You can take a look at all the terms we post with the Trading Glossary label.

Also, visit our Trading Community to learn more about our indepth top down analysis process and trading methodology based on the auction market theory and other closely related nuances.

TPO Intra-day Analysis on ES

A quick glar on the daily TPO profiles and we can see that the market closed as a p-shaed profile yesterday. Today the market opened way below the value close area. At the first glance we should be bearish. However, we are kind of far below the POC, therefore the probability to revisit the value close area was higher. As the day unfolded we can observe that the market were magnetized to the value area. Currently we test the VAl close level and trying to test the POC close level. Let's see what happens here to conclude a possible bearish trade scenario - until the market does not break above the mentioned POC.

Learn more about the p-shaped pattern on our website: https://leprivatebanker.com/education/p-shaped-profiles/

Intra-day VWAP Update on ES

The market opened above value and found support around the previous day's VAH close level. Quite rotational day between the extremes and the slope of the VWAP is kind of flat. After this quick surge higher the market found resistance around a prior VWAP level. Let's see how the market will evolve here with some pattern to conclude the next possible trade scenario.

Pullback Low/Rally High - Trading Glossary

Late in the afternoon on a trend day price migration against the prevailing trend. During the afternoon there is one inventory adjustment. On the next session the pullback high or low is used to see if there is any change to the previous day; if the pullback high/low is not taken out this shows no change in directional conviction and becomes support.

This is a trading glossary term series of blog posts. You can take a look at all the terms we post with the Trading Glossary label.

Also, visit our Trading Community to learn more about our indepth top down analysis process and trading methodology based on the auction market theory and other closely related nuances.

Yearly VWAP Update on ES

Looking at the daily perspective with the Yearly VWAP we can observe the strong sell off which occured for six days. On Friday in the previous week the market found support around the previous Year's VWAP close level after breaking several Yearly developing levels and the VAH close level of the prior Year. Today we quickly surged higher to test the developing VAL level for resistance. At the same time we can see support of the previous Year's VAH close level as today's session opened above this particular level. Let's see how the marke envolve between these two levels.

TPO Profile Update On ES

Looking at the TPO profiles we can identify Friday as balanced proile. The market opened inside of value and found support at the VAL close level to surge higher above Friday's high. After six days of a strong trend lower we can see a test of a high again. However, the market found resistance and seen a pullback into value again. The market found support at the VPOC (volume profile based) and testing the upper balance extreme once again. Let's see how the market will behave here as it confluent with the developing daily VAH level of the daily VWAP.

Reversion to the Mean - Trading Glossary

A Reversion to the Mean can be looked at as an inventory adjustment that will occur in the later part of a trading session. This can be the result of intra-day traders liquidating their long positions or covering their short positions depending on what the market was doing that day. A reversion to the mean trade will always be targeted and is best taken when the market comes back into the day's developing value with a target at the VWAP or DPOC.

This is a trading glossary term series of blog posts. You can take a look at all the terms we post with the Trading Glossary label.

Also, visit our Trading Community to learn more about our indepth top down analysis process and trading methodology based on the auction market theory and other closely related nuances.