This is a YouTube tutorial by Kardec Trader ("Market Profile: Anomalies - Poor Extremes Part 2") explaining the market-profile concept of "poor extremes": poor highs and poor lows. The speaker defines poor extremes as highs/lows that lack excess (tails) and often manifest as single TPO prints, interprets them in auction market theory as places where larger or "other time frame" participants have not engaged, and discusses trading implications—notably that such levels can be repaired, be targets for stop runs, or provide entry locations depending on broader trend or range context.
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All right, so just a little bit more on the idea of poor extremes. So poor highs, poor lows. And as we went over in the last video, this is sometimes due to the fact that the market is losing momentum and there is a failed auction or a lack of a complete auction at either the high or the low. What we have is we have a high that is blunt or a low that is blunt and does not have any kind of sign of any a tail or any resemblance of excess. So Instead of having two TPOs at the low, we have something like one or even greater. So here's an example of a poor low right here. Here's an example of a poor high. And at this resolution, you might not be able to see it as obviously, but what we're looking at is just one TPO. We do not have a print of two TPOs. So this can come in many forms. It could be like this, which is a little bit more subtle than something like this and a little bit less subtle. And in between something like. So we have one TPO, two TPOs, and then three TPOs. So what this says is that the market and what we think about, when we think about auction market theory and TPOs and market profile in general is that when we look for presence of the other time frame participant, we look for something like tails, right? We look for something like a sign of excess. So what we see normally is a single print, right? We'll move into a location, we'll advance, whether we're in a trend upward or downward or making our way for the first time outside of a range, we'll advance through an area and we'll find that other participant. And what it'll lead to is a kickback. So we'll have something like a tail at the low, or if we scroll back, another tail down here or a tail at the high. Okay, so what this says is there is some degree of kickback by either that other time frame seller or that other time frame buyer. And we talk about other time frame. What we mean is we're outside of the intraday traders, we're outside of maybe the scalpers, and we've found ourselves a decent amount of resistance. So as I've said before, we have many different types of participants in the market. Not all of them participate in the same zone. As we approach key contextual levels, we start to find more and more of those larger participants. So sometimes we'll be referring to that as the other time frame participants. So if you're trading a five minute chart and you're close to a swing within a daily chart, you're going to find yourself with other time frame participants as well. So what this has said is that price has yet to find that large buyer or that large seller to move prices back in the opposite direction. Okay. So we still not have, we still haven't found anyone to complete the auction. So these are actionable in a few different ways. Right. So we obviously need to take these in consideration with the context of the current trend or the current range. So sometimes we might have a case of one poor high and the example to follow might be a poor low, or it might be moving sideways within a range. We'll zoom out and we'll just find a different example. We have an example of, let's say a poor high up here, a poor low down here, and you're wondering which one is more likely to be repaired, which one is more likely to be filled. Well, if we see that in the example we have, let's say a trend moving upward and we're beginning to see rollover. Okay. And we lose momentum, but the trend direction is upward and we have, let's say a poor high up here and a poor low down here. Well, we might repair the poor low with something like a stop run. Okay. But ultimately move through the poor high because that was one of the signs that there was a lack of presence in selling at the high of the structure. So you could look at poor highs, as we said in the previous video, as on the profile, as an indication that we've been consolidating against a level. So when we open up something like a poor high over here, that has three prints, you'll see what this looks like is that we've spent a good amount of time at this high before. Okay. If we were to open this entire structure, we'd see that over the course of this time, we've spent a considerable amount of time hovering at this location. So what this does is it gives you a very obvious sign that there's consolidation at a level. And again, there's no immediate level of kickback. You could see that over here we had a poor high. Over here we had a poor high. So again, what this is doing is showing you that price has been consolidating at this level. And if the general direction and energy of the market has been up at this point, we might expect, like we said, this poor high to be repaired and result in follow through. But we might take out this low initially before moving up to run these stops. So when you have something like a range forming. Just in the example of a range forming or a bracketed market, if you see that there are poor highs or poor lows, what these do represent also are good areas for stop runs. So anytime you're moving within a range and price has yet to gain acceptance outside of it, if you see a poor high or poor low, this does represent a prime opportunity for a stop run. Which if, let's say for example, we have a trend that has been coming from a major move up, but has been consolidating for a long period of time. When we talk about where is best to get involved in a consolidation, what we mentioned was over the course of the consolidation, the best locations to get involved are the extremes, right? The extreme high, the value area high, the value area low. Getting involved in the middle is one of the more liquid areas. But you can leave flat footed unless you have the presence of a large trend, right? What we have in this example, we talked about this being what was a prevailing trend coming from an impulsive move up and now consolidating. Now the lows and highs are where we would want to get involved for mean reversion trading. But if we have something like poor lows along this structure, and we know that it is coming from a greater trend, meaning this is a continuation potentially, or a consolidation within a continuation pattern, these stops that might be run or represent areas, these poor lows that might represent good areas for a stop running might be an area where you might want to consider placing your entries. So one of the popular sayings is you should be placing your entries where other traders are placing their stops. So this is just one of the ways that we could use something like poor extremes. And in this case that I've been mentioning, that was poor lows. But the same concept works with poor highs as well. These are areas where the market has not found any significant pressure from the other side. They represent areas where we could potentially clean up. And this might come in the form of either stop runs or continuation. And one of the things that will determine what order we think that that will occur is the context of the current environment. Are we coming from being in a range for a really long period of time or do we have a little bit more directional certainty? Whereas if we zoom out, maybe the greater prevailing trend has been that we are moving upward. In this case, when we zoom out, it's actually the case that we've been moving within a trend. But what this is is obviously just multiple scenarios that we can sort of paint for you so that you can have the best approach moving forward.
