Disliked{quote} go back about 50 pages you have to read then everything will also find the indicators of how i structure my trade page 450, post 8.999Ignored
Auction Market Theory and Market Profile
- #10,166
- Feb 17, 2020 2:32pm Feb 17, 2020 2:32pm
- Joined May 2018 | Status: Tadpole | 2,719 Posts
Stay green!!!
- #10,167
- Feb 17, 2020 3:29pm Feb 17, 2020 3:29pm
Auction Market Theory and Market Profile
This is not your grandpa's Market Profile. This what I call the Relative Price Density Profile (RPD Profile).
Profiles can be approached in a number of different ways. There is no one way to do it. Depends on what you research and what you design. Thick Pink projection (line) above shows dynamic Target. Body of the RPD Profile shows current (dynamic) market action and market behavior as it relates to dominant trajectories at the time the profile is being made.
Light blue line shows RPD POC. Both White lines encapsulating shaded Blue area shows the RPD VAL, RPD VAL and RPD VAD. There is a lot of additional useful information on this RPD Profile. Of course, "Market Profiles" in general are an Art Form unto themselves and I recommend using them highly - as long one knows exactly what inputs are being used to produce the Profile. Super critical.
One of the main reasons (I suspect) that Market Profiles are not used much by Retail Traders, has to do with not knowing the meaning behind the inputs used to build them. When you design your own Market Profile, that problem goes away and you can better understand how to integrate a Profile of your own design into the rest of your technical based trading.
The Indicator Window below the chart window "indicates" that this pair is preparing to explode. I would not want to be caught on the wrong side of the pending explosion. The Direction of that explosion can be clearly seen in the RPD Profile's density, 'indicated' by the area of market rotation that's been taking shape over the past 72 hours at the bottom of the Profile.
There is always more than one way to skin the cat.
This is not your grandpa's Market Profile. This what I call the Relative Price Density Profile (RPD Profile).
Profiles can be approached in a number of different ways. There is no one way to do it. Depends on what you research and what you design. Thick Pink projection (line) above shows dynamic Target. Body of the RPD Profile shows current (dynamic) market action and market behavior as it relates to dominant trajectories at the time the profile is being made.
Light blue line shows RPD POC. Both White lines encapsulating shaded Blue area shows the RPD VAL, RPD VAL and RPD VAD. There is a lot of additional useful information on this RPD Profile. Of course, "Market Profiles" in general are an Art Form unto themselves and I recommend using them highly - as long one knows exactly what inputs are being used to produce the Profile. Super critical.
One of the main reasons (I suspect) that Market Profiles are not used much by Retail Traders, has to do with not knowing the meaning behind the inputs used to build them. When you design your own Market Profile, that problem goes away and you can better understand how to integrate a Profile of your own design into the rest of your technical based trading.
The Indicator Window below the chart window "indicates" that this pair is preparing to explode. I would not want to be caught on the wrong side of the pending explosion. The Direction of that explosion can be clearly seen in the RPD Profile's density, 'indicated' by the area of market rotation that's been taking shape over the past 72 hours at the bottom of the Profile.
There is always more than one way to skin the cat.
- #10,168
- Feb 17, 2020 3:50pm Feb 17, 2020 3:50pm
Same trade. Different RPD Profile arrangement:
RPD Multi-Profile shows descending POC levels since last Monday, culminating in an arrested POC rate of descent into today. Prior to that arrested POC descent rate was an arrested VAL rate of descent on last Friday. Couple to that was an arresting of Peak Profile activity on last Thursday (not glowing Profile tip in yellow). Combined with a few other factors from these RPD Profiles, market rotation to the upside began as early as last Thursday, but did not seat itself until last Friday.
Now, there is market rotation taking place along with RPD Profile encapsulation within a larger GMMA Composite Structure based on the 4 hour time frame. What I'm looking for here as confirmation, is this RPD Profile's BPP and VAH to clear the exact same Profile elements from last Friday's Profile Structure.
The very last RPD Profile seen here (the one on the far right side of the chart) is the Dynamic RPD Profile for this particular configuration of RPD Profile. All the six (6) Profiles seen are previous session profiles using the M15 Time Frame.
It took a long time for me to learn how to interpret what my own Profile designs were telling me. Not unusual for new Indicator designs. Often times, someone will create a new bespoke Indicator and then throw it away because they can't find a way to make it useful in their mind. Sometimes, you create a new design and you don't actually figure out how to use it for many months or even years down the road.
This is why I always recommend to Systems Designer's to never (ever) throw away your work. If it does not make sense to you initially, just put it on the back burner. Something will come along in the course of your Research that will unlock the potential of an older design that you thought was useless. Never throw away your work. Ever.
RPD Multi-Profile shows descending POC levels since last Monday, culminating in an arrested POC rate of descent into today. Prior to that arrested POC descent rate was an arrested VAL rate of descent on last Friday. Couple to that was an arresting of Peak Profile activity on last Thursday (not glowing Profile tip in yellow). Combined with a few other factors from these RPD Profiles, market rotation to the upside began as early as last Thursday, but did not seat itself until last Friday.
Now, there is market rotation taking place along with RPD Profile encapsulation within a larger GMMA Composite Structure based on the 4 hour time frame. What I'm looking for here as confirmation, is this RPD Profile's BPP and VAH to clear the exact same Profile elements from last Friday's Profile Structure.
The very last RPD Profile seen here (the one on the far right side of the chart) is the Dynamic RPD Profile for this particular configuration of RPD Profile. All the six (6) Profiles seen are previous session profiles using the M15 Time Frame.
It took a long time for me to learn how to interpret what my own Profile designs were telling me. Not unusual for new Indicator designs. Often times, someone will create a new bespoke Indicator and then throw it away because they can't find a way to make it useful in their mind. Sometimes, you create a new design and you don't actually figure out how to use it for many months or even years down the road.
This is why I always recommend to Systems Designer's to never (ever) throw away your work. If it does not make sense to you initially, just put it on the back burner. Something will come along in the course of your Research that will unlock the potential of an older design that you thought was useless. Never throw away your work. Ever.
- #10,169
- Feb 17, 2020 4:06pm Feb 17, 2020 4:06pm
And, lastly, a look at the bigger picture for EURAUD:
This RPD Profile uses the same Time Frame (M15) but is expanded to cover more historical data. Its Structure is different, but the underlying factors relative to projected market Direction remain that same as the others I've posted. Same exact RPD Profile elements, however (VA, VAL, VAH, POC, APP, BPP, etc., etc., etc.).
However, this larger Profile shows a hidden POC lurking at 1.63007. But, it also shows a newly forming (younger) POC being built at 1.6135. That kind of information is very interesting to me and very useful. This particular Profile also shows it has a POC (powder blue line within the blue shaded Value Area) that hangs lower in its overall Value Area. This places stronger relative price density in the lower portion of the overall VA and the current Lowest Low Node (Thick Pink Line) is below this particular VA.
That's very attractive to me as a Trader, because I know that sooner or later, that Lowest Low Node will be replaced by and pushed upward within the RPD Profile. It took many many (many) months to figure why and how the market was doing that little trick. Once I saw that was repeating itself as normal RPD Profile and normal market behavior, I began developing ways to exploit that behavior.
The key to understanding Market Profiles is to understand Market Rotation (if you are a Directional Trader). The Profile (all of them) shows where Market Rotation is taking place. The next step is to get the Profile to show Directional Probability once Market Rotation ends and Institutional Traders begin to move like the large Killer Whales they are. I should should have called it Orca Profile, instead of RPD Profile.
Anyway, so much for "Profiles."
This RPD Profile uses the same Time Frame (M15) but is expanded to cover more historical data. Its Structure is different, but the underlying factors relative to projected market Direction remain that same as the others I've posted. Same exact RPD Profile elements, however (VA, VAL, VAH, POC, APP, BPP, etc., etc., etc.).
However, this larger Profile shows a hidden POC lurking at 1.63007. But, it also shows a newly forming (younger) POC being built at 1.6135. That kind of information is very interesting to me and very useful. This particular Profile also shows it has a POC (powder blue line within the blue shaded Value Area) that hangs lower in its overall Value Area. This places stronger relative price density in the lower portion of the overall VA and the current Lowest Low Node (Thick Pink Line) is below this particular VA.
That's very attractive to me as a Trader, because I know that sooner or later, that Lowest Low Node will be replaced by and pushed upward within the RPD Profile. It took many many (many) months to figure why and how the market was doing that little trick. Once I saw that was repeating itself as normal RPD Profile and normal market behavior, I began developing ways to exploit that behavior.
The key to understanding Market Profiles is to understand Market Rotation (if you are a Directional Trader). The Profile (all of them) shows where Market Rotation is taking place. The next step is to get the Profile to show Directional Probability once Market Rotation ends and Institutional Traders begin to move like the large Killer Whales they are. I should should have called it Orca Profile, instead of RPD Profile.
Anyway, so much for "Profiles."
- #10,175
- Feb 17, 2020 5:08pm Feb 17, 2020 5:08pm
- Joined May 2018 | Status: Tadpole | 2,719 Posts
Stay green!!!
- #10,180
- Feb 17, 2020 5:51pm Feb 17, 2020 5:51pm
- Joined Jan 2018 | Status: Trader | 17,298 Posts
{quote} hahaha, yes Kette, I have read them all! I have started studying Order flow, Volume etc... since November last year (many good threads) and just starting to make sense of it with your help and charts!!! The idea of putting a chart up with a few indis and expecting immediate success is exciting but as most of us know it rarely works....
