#ES_F $ES_F
To measure how the auction is progressing its important to pay attention to:
1. Value Are Placement
2. Value Area Width
3. Volume
1. VA Placement: Making Higher high and higher low (VAL)
2. VA Width: Getting narrower - this is a concern
3. Vol: Staying about the same or less
Bullish until proven otherwise, but the tightening signals caution. The market is auctioning higher efficiently, but concerns mount if participation doesn't rebound. This isn't panic territory yet, but it's a setup where I'd lighten longs and prepare for potential two-sided trade.
Just like any auction fading volume at highs always signals end of current auction. Stay nimble in this market. When it becomes very easy to make money on one side, be concerned.
From risk perspective, this is not the area to be increasing your position size. Reduce your exposure.
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