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Auction Market Theory and Market Profile
- #24,003
- Nov 22, 2023 8:06am Nov 22, 2023 8:06am
- Joined May 2010 | Status: Trader | 2,693 Posts
UJ SELL SET UP M30 ...... 
- #24,004
- Edited 10:43am Nov 22, 2023 10:31am | Edited 10:43am
- Joined Jan 2018 | Status: Trader | 17,298 Posts
- #24,007
- Edited 6:45am Nov 23, 2023 6:26am | Edited 6:45am
- Joined Jan 2018 | Status: Trader | 17,298 Posts
- #24,011
- Edited 5:18pm Nov 23, 2023 4:44pm | Edited 5:18pm
- Joined Jun 2022 | Status: Evolving | 236 Posts
It has been a quiet week for me Auction Market Theory trading setups wise. I have been using the extra time like all serious traders do, for research, for back-forward testing new markets/pairs/ideas, as well as tracking trading performance and data to analyse objectively in an effort to continually improve our strategies.
That aside, today's trading range on EURUSD caught my eye, price printed a standard balanced 'D' distribution market profile (market in equilibrium). Also to note, most of today's trading range as well as the value area is within Thursday's value area. As a general rule, in this situation, responsive activity is expected.
This is the initial setup for a responsive activity style trading strategy I trade, depending on what the opening range closes as (to my settings), I interpret this information as a market that is in complete balance and should remain in a relative state of equilibrium rotating around fair value. I then take advantage of the intraday volatility (noise) we witness everyday to try get a good price away from value, and trade it back into value, mean reversion style.
In my opinion, this responsive AMT ideology is only prevalent ahead of and awhile after significant news releases, usually being economic data. If all criteria is met for me to trade tomorrow/today (Friday 24th), it is essential to know when exactly these significant events are to either not enter positions close to the event and/or square up any existing positions beforehand. Friday's most important events for EURUSD: 
That aside, today's trading range on EURUSD caught my eye, price printed a standard balanced 'D' distribution market profile (market in equilibrium). Also to note, most of today's trading range as well as the value area is within Thursday's value area. As a general rule, in this situation, responsive activity is expected.
This is the initial setup for a responsive activity style trading strategy I trade, depending on what the opening range closes as (to my settings), I interpret this information as a market that is in complete balance and should remain in a relative state of equilibrium rotating around fair value. I then take advantage of the intraday volatility (noise) we witness everyday to try get a good price away from value, and trade it back into value, mean reversion style.
In my opinion, this responsive AMT ideology is only prevalent ahead of and awhile after significant news releases, usually being economic data. If all criteria is met for me to trade tomorrow/today (Friday 24th), it is essential to know when exactly these significant events are to either not enter positions close to the event and/or square up any existing positions beforehand. Friday's most important events for EURUSD:
Seeking Fair Value
