Disliked{quote} Infinitus will speak up for himself, but if gaussian distribution is the common denominator, why should it not be legitimate to compare mp with 'other' statistical approaches based on the same premise?Ignored
I simply do not understand the whole discussion.
Market profile and determining value is all about the thesis, that price goes back to value. Other people like me call it mean reverting.
Around value, market is consolidating (giving to that area even more value, since a lot of trading is done there.
In zones of "no-volume", market is in imbalance. Zones of high volume and zones of formerly low to zero volume are the ones, we have to pay attention to (even when you are using religiously AMT and MP)
When market is trending, it will run away from the area, which was thought to be value, because traders agree now on more (or less) value.
On a higher TF you can see, that the market is trending (there seems to be not much (or no) mean reverting or partially mean reverting) between point A and point B.
Looking at smaller TF's, you are able to see between A and B "micro" consolidating zones (forming eventually Gaussian distribution)
Markets are fractal: what is on one TF a mean reverting procedure, is on a higher TF simply "white noise".
I had a nice discussion about that with PipMeUp on the other thread I mentioned this morning.
Another thing: auction market theory and market profile do handle the data with arbitrary chosen durations, like the 1-day, the 5 day or the 20 day profiles.
For me, those static considerations do not serve the active markets we are in today, with Forex open 24/5 or 24/7 (interbank).
So the big challenge is: when to start and end one profile? To say, I use the static one day comes obviously with many shortcomings.