Auction Market Theory and Market Profile

awsome thread!!

A few examples of how to interpret delta.

I've been looking at that ClusterDelta tool since you sent it to me, Mzvega. It's a very interesting tool, it's cool that it's free.

I've been running it along side my MT4 to better understand how to interpret the data. That website is a little rough to navigate, even with the google translate (automatic on Google Chrome).

Here's another link thats alittle easier to read, not the same site, but the same tool.......

Learning to read Cluster data
(Theres 47 thread pages, the page #'s at the bottom of the page are small and easy to miss

http://translate.google.com/translat...wtopic%3D23597

Heres another thread at the same site (49 pages)
http://translate.google.com/translat...D17799&act=url

Spot on mzvega...nice analysis. & nice share.

I tried this software previously but experience a lot of crash on my system so did not test it further..it seems the currect beta is more stable on my PC now.

I have been using MD for almost a year now which i inherited it from my inlaw. I use it mainly to access the order flow & seek out agressive activities....

Here is my chart setup to only view delta, Avg delta occilator & volume

Unfortunately, my analysis leaves much to be desired. I still have many things to learn. At the moment I'm only using it to monitor PA at major reference areas for better entries, while I familiarize myself with the other aspects. One of those things that will take lots of reading, and hours of screen time, on my part….. Marketdelta has a lot more "bells & whistles" (I'm using Marketdelta & Investor/RT for reference material). I'm also trying to find a book that might give me a more in-depth understanding of Delta trading & strategies.

Thanks Evak and Mzvega for all your great work in this thread.

I have been keeping an eye on this thread as I am a big fan of Market Profile. The issue I have, is with the fact that you can not merge or split profiles in my software package.

After taking two losses yesterday, I had to ask myself, " What really works?". Aside from VSA, my answer was Auction Market Theory (AMT). Long story short, despite my issues with merges and splits, I threw on some of the Market Profile lines most important to me and.......

Take a look at the chart.

I noticed that price was making unfair highs. Price was outside the developing value area as well as outside yesterday's value area. Based on VSA, this was not initiative buying as supply was entering the market. I was a little late and did not take the trade on the Up Thrust. I waited for the No Buying Pressure once price moved back into the developing value area. From this point I was thinking 80% rule. 80% of the time the market comes back into value and price is accepted, price trades to the other side of value.

This is where MP becomes valueable. I could easily define my risk and my reward. My risk was the developing value area high. My reward the developing value area low. Plus this move would take price back into yesterday's value area which could take price all the way down to yesterday's value area low. As luck would have it, price did not get down that far. Price almost got down to yesterday's POC and then we got a Key Reversal Bar (KRB). I exited on the next interval.

If you'll have me, I think I'm back.

You have both set the bar pretty high. I have much to learn.

I guess is welcome back HG . Your input is definately invaluable here even though i am not a VSA purist but i am sure others who are may find it helpfull.

Use of common AMT reference for trade location & destinationn do simplify the trading somewhat but some of the structural references like gaps &/or spikes could also provided furthur infomation.

For ES; After Friday balance, traded into an inside day. Which means yesterdays trade reference would also be taken from the 2day balance itself or use of Friday value range. Since yesterday opens within Monday Value Range. Better opportuinity fall outside of this range. So the advise as per JD; is the wait for shakeout under the unfair trade locations.

Structural reference here are the friday spike on both ends of the range. Both are late spikes that was never accepted even yesterday. Dont you love those spikes

We have a late bounce off the DPOC just prior to early session & heading back up towards yVAH now. Will we see acceptance prior to heading back into yesterday high?




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I did this during my lunch time just to illustrate my intepretation of the CD chart. I keep it short for now.

I configure my color scheme to essentially view the workflow using minimum dual tone colors.

The point of largest Delta is important here as this is usually a long range bar..subsequent bar would be shorten which usually follows by depletion of overall delta. Then we look for buying or selling cutoffs which usually occur with sudden busrt of high delta follow but rapid depletion. So in a nutshell when the cutoffs occurs what we see is absorbtion. In AMT speak is responsive buyers have meets their sellers.

Next would be the follow through of buyers if any after we see reponse, AMT speak would be the aggressive buyers INITIATES. Here we like to see continuous lifting of offers an indication....


ES chart on 60mins

EU rebound from yesterday's NY low during Asia sess, UK iniitates up towards the spike zone & rotating prior to US market open. CME already tested the base too...GO no GO!

PFGBEST & ESIGNAL also hosted the same type of webinar, the charts were clear and he gave slightly better detail, PFGBEST is going through bankruptcy and the server is down, and the archived webinar is unavailable. You may be able to find the webinar with better charts through Esignals archived webinars……...[/quote]

Anyone got this PFGBEST & ESIGNAL Steidlmayer webinar.

Anyone got this PFGBEST & ESIGNAL Steidlmayer webinar.[/quote]

http://www.forexfactory.com/showthre...56#post5990856

http://www.forexfactory.com/showthre...28#post5934428

Hi All and thank you for all the interesting posts here.

I have used MP since I first started trading back in the early 80's because I intuitively felt it held something different and more useful than most bar chart based startegies which seem to be mostly price based.

However I notice all the graphics posted here are "old" market profile. Does anyone here use Peter Steidlmeyer's Capital Flow software?
I'd be interested in hearing from you.

I have over the years landed at the point where the only market condition I want to trade is "minus development" and spend my time trying to identifying those types of conditions. (read J-PS last book which he wrte with his daughter and marry that to his work on market steps, 1,2,3 and 4.) If we could only trade directionally with Steps 1 conditions I would be a happy man... any help in that respect would be MOST welcome
Thanks.

Before the Asia Open GJ had a 20k tic count with no movement near the top of the last 25k tic strip. On the Asia open a new strip starts and test high of the prev 20k strip and fails to break it. Each strip is 25k tics when that is met a new strip is started until Asia opens.

GU watch on London Open. GU Asia 25k strip had little move and a test with no break. Buy zone is Asia Low after a GJ spike

AU Asia Open 25k strip had 35 pip range. We are testing lows now and I will buy

I entered long on the test of the Low Strip.

Took 50 on this easy trade before London

Update to the AU Long. Current strip tested the Low and entered some more.

took 24 on the London Open on AU. shorting GJ again on the test to the Top.

Update GJ short