Trading Volume Clusters on ES (S&P 500 Futures)

12 Şub 2020

Quite a lot of people like trading indices using the Volume Profile tool.

In my experience, the Volume Profile works fantastic with indices. In fact, I am also planning to add ES (SP 500 futures) to the levels which I publish daily for members of my Trading course.

So, today, I would like to have a closer look at the ES and show you my intraday trade analysis using Volume Profile there.

Let’s look for some Volume Clusters!
There was a strong buying activity on Monday and buyers were pushing the price upwards.

When I see an intraday uptrend like this, then I start to look for significant Volume Clusters formed within the uptrend.

Such Volume Clusters point to places, where the buyers who are pushing the price upwards were adding to their buying positions.

Volume cluster
As you can see, the volumes in this Volume Cluster are really nicely visible and the level is very clear and easy to see.

Most of the buyers from this uptrend were adding to their positions at this place.

What I expect now is that when the price makes it back to this level again sometime in the future, those buyers will become active again and they will start pushing the price upwards again.

This does not need to happen today or tomorrow, not even this week! Markets have good memory, so even if this level gets hit in 2-3 weeks I will still believe in a buying reaction from there.

I hope you guys liked the analysis. Feel free to leave a comment below.

Happy trading!

-Dale