Price GAPs, Exact Level Bounces & Short Covering Explained | Seeing the Market in 3D Ep. 3

Añadido: 2026-05-27

[00:00:00]Hello everyone. Welcome to episode number three of seeing the markets in three dimensions. Clarifying what three dimensions are, it is time, price, and opportunity to buy or sell, which is what is reflected in this 3D sort of looking like charts called market profile charts. In the description of the video, I I shared what tools I use to see this kind of data for the futures market for Nasdaq or whatever ticker symbol that So, jumping to last Friday's price action, I saw something very unique that I wanted to point out. So, let's start with the ES futures market profile view first.

[00:00:40]The shape that we formed on Friday, May 22nd, in the ES futures, like S&P 500 index, is a P profile. As you can see, it's a distinguished P profile with point of control being at 7505. If you have noticed, the low of the day is exactly matching with afternoon rally high of prior day, which is like May 21st. I do track the levels every day, so I noticed that the low of the day was exactly matching the afternoon rally high of May 21. That means market opened with a gap.

[00:01:17]You see here, prior day's high. This is May 21st [snorts] high.

[00:01:22]And this is the overnight session.

[00:01:25]Then comes the regular trading hours of May 22.

[00:01:29]We opened with a gap up, and we filled the gap.

[00:01:33]Then we bounced right from the afternoon rally high, went back up, then closed somewhere like slightly below the opening.

[00:01:44]But still above the prior day's high.

[00:01:45]So, the trend is starting to continuing to be up on the daily time frame.

[00:01:51]What I wanted to clarify here is the exactness. When you see that kind of exactness, be it like afternoon early high or bouncing off the settle, there is a slight chance that the trend can tend to be choppy or like balancing the day, but we are noticing another thing.

[00:02:10]Today, since it's a Memorial Day weekend, the futures are still traded, and we see that there was a overnight price gap, which is what I have highlighted here with this white box.

[00:02:24]It's a key information. It you have to consider this as a gap that would form in the regular trading hours. In the last week's episode, I have covered what a gap means and so on. You're welcome to check out that one.

[00:02:37]And here, this overnight gap essentially means, as long as the gap remains, you have to like continue in the trend to the upside.

[00:02:47]When when it tries to come and fill the gap, then we have to see whether it fully finishes and then bounces off or it finishes