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Auction Market Theory and Market Profile

  • #24,401
  • Feb 9, 2024 8:16am Feb 9, 2024 8:16am
Crude oil buy oportunity
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Tuanyer
  • #24,402
  • Feb 9, 2024 8:23am Feb 9, 2024 8:23am
I just noticed this particular daily volume profile on yesterday's oil move up
never seen this kind of profile before, maybe not in daily

asking here if any of you can give me an insight about if there is a particular meaning?
looks to me it shows there were particularly intense volumes and strength in the move, suggesting a continuation (like it's happening) but it's only my perception after the fact
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90% of traders use TA, indicators and prediction
  • #24,403
  • Feb 9, 2024 8:31am Feb 9, 2024 8:31am
Quoting _BBKing_
I just noticed this particular daily volume profile on yesterday's oil move up never seen this kind of profile before, maybe not in daily asking here if any of you can give me an insight about if there is a particular meaning? looks to me it shows there were particularly intense volumes and strength in the move, suggesting a continuation (like it's happening) but it's only my perception after the fact {image}
In short explanation, Price on a trend direction. Each node indicate buyer and seller activities wich can be determine by delta volume in each node. In thsi case each node has indecate mor buyer activities. But you you have to understand that Oil is moving from VAL to VAH thats mean up trend in D1, so in minor timframe you will see this type of structure.

Hope can help

Regards
Tunyer
Tuanyer
  • #24,404
  • Feb 9, 2024 8:42am Feb 9, 2024 8:42am
Quoting tuanyer
{quote} In short explanation, Price on a trend direction. Each node indicate buyer and seller activities wich can be determine by delta volume in each node. In thsi case each node has indecate mor buyer activities. But you you have to understand that Oil is moving from VAL to VAH thats mean up trend in D1, so in minor timframe you will see this type of structure. Hope can help Regards Tunyer
ok thanks!!
but usually what we see is a single or double nodes...
I never seen a quadruple one... looks to me it shows a very strong move (up in this case) and can be considered later as a powerful support area
Looking at chart now, after the fact, price is penetrating where I supposed to be supply (red) just like there was no sell orders or very little..
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90% of traders use TA, indicators and prediction
  • #24,405
  • Feb 9, 2024 8:47am Feb 9, 2024 8:47am
Quoting _BBKing_
{quote} ok thanks!! but usually what we see is a single or double nodes... I never seen a quadruple one... looks to me it shows a very strong move (up in this case) and can be considered later as a powerful support area Looking at chart now, after the fact, price is penetrating where I supposed to be supply (red) just like there was no sell orders or very little.. {image}
In Crude Oil is very diffrent the on how move
Please see the + delta each day and will be more clear for you.
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Tuanyer
  • #24,406
  • Feb 9, 2024 8:51am Feb 9, 2024 8:51am
Quoting tuanyer
{quote} In Crude Oil is very diffrent the on how move Please see the + delta each day and will be more clear for you. {image}
thank you very much
looks like I will need that indi, can help in understanding even better what's going on in a particular area
90% of traders use TA, indicators and prediction
  • #24,407
  • Feb 9, 2024 9:11am Feb 9, 2024 9:11am
Quoting _BBKing_
{quote} thank you very much looks like I will need that indi, can help in understanding even better what's going on in a particular area
I recommend to check AMT = Auction Market Theory and Order flow.

Regards
Tuanyer
Tuanyer
  • #24,408
  • Feb 9, 2024 9:13am Feb 9, 2024 9:13am
Quoting _BBKing_
I just noticed this particular daily volume profile on yesterday's oil move up never seen this kind of profile before, maybe not in daily asking here if any of you can give me an insight about if there is a particular meaning? looks to me it shows there were particularly intense volumes and strength in the move, suggesting a continuation (like it's happening) but it's only my perception after the fact {image}
Hi BBKing,

That is a standard 'Trend Day' according to Auction Market Theory, good spot! I quickly got some educational material from one of the original AMT & Market Profile books that describe this specific day type:

"Trend Day

Dynamics
There are two types of Trend days: the standard Trend day and the Double-Distribution Trend day. The most important feature of a standard Trend day is the high level of directional confidence that is evident throughout the day. The other timeframe buyer or seller remains in control of the auction process virtually from the day’s open to its close. In addition, as a Trend auctions higher or lower, it continues to draw new business into the market, thus creating unidirectional, sustained price movement fuelled by higher volume.

Structural Characteristics
On a Trend day, the open forms the upper or lower extreme in the large majority of cases, because the other timeframe is usually in control from the opening bell. In the Trend day example in Figure 2.6, the other timeframe seller extends the range downward during multiple time periods, remaining in control for the entire day (points 2 and 3). Such unidirectional activity is referred to as a “one-timeframe” market. During a one-timeframe buying Trend day, each time period will auction to a higher (or equal) price level without auctioning below the previous time period’s lows. Conversely, in a one-timeframe selling Trend day, each additional time period will equal or extend below previous periods without auctioning above the previous period’s highs. One-timeframe conditions are a good indication of other timeframe control and a potential Trend day.

A Trend day differs from a Normal Variation day in that the Trend day’s Profile is generally thinner and more elongated, usually no more than four or five TPOs wide at any point. Failure to recognize and accept that one is in a Trend day is one of the most costly mistakes a trader can make. Several days of trading profits can be lost in one trading session if you are positioned against the trend. It is important to identify early that either the other timeframe buyer or seller is in clear control and position yourself with them."

In your chart screenshot you can see during the breakout (or trend phase) the market was 'one timeframing' upwards, which is a blatant sign of buyer strength and aggression! The high volume clusters within the trend day profile can be used for support/resistance bounces like any other profile.

Trade safe,

MM
Seeking Fair Value
  • #24,409
  • Feb 9, 2024 9:20am Feb 9, 2024 9:20am
Quoting tuanyer
{quote} Hi You can find it here.: https://www.mql5.com/en/market/produ...Profile+Seller https://www.mql5.com/en/market/produ...e=Site+Profile
Thank you for your links but I saw you traded at TrainingView
Just an opinion. Based on research
  • #24,410
  • Feb 9, 2024 9:29am Feb 9, 2024 9:29am
Quoting since80808
{quote} Thank you for your links but I saw you traded at TrainingView
I use both. My platform for operate trading is MT4. But in addition I use Tradingview.



Regards
Tuanyer
Tuanyer
  • #24,411
  • Feb 9, 2024 11:00am Feb 9, 2024 11:00am
Quoting tuanyer
{quote} I recommend to check AMT = Auction Market Theory and Order flow. Regards Tuanyer
ok
you mean the book?
90% of traders use TA, indicators and prediction
  • #24,412
  • Feb 9, 2024 11:01am Feb 9, 2024 11:01am
Quoting makingmoves
{quote} Hi BBKing, That is a standard 'Trend Day' according to Auction Market Theory, good spot! I quickly got some educational material from one of the original AMT & Market Profile books that describe this specific day type: "Trend Day Dynamics There are two types of Trend days: the standard Trend day and the Double-Distribution Trend day. The most important feature of a standard Trend day is the high level of directional confidence that is evident throughout the day. The other timeframe buyer or seller remains in control of the auction process...

good
the more I look into volumes, the more I understand I will hardly come back
thank you
90% of traders use TA, indicators and prediction
  • #24,413
  • Feb 9, 2024 12:09pm Feb 9, 2024 12:09pm
Quoting tuanyer
{quote} I use both. My platform for operate trading is MT4. But in addition I use Tradingview. Regards Tuanyer
Could you please be so kind to help me with the names of these 2 indies names (for delta and profile) at TradingView?

Thank you anyway for your ideas!
Just an opinion. Based on research
  • #24,414
  • Feb 9, 2024 12:22pm Feb 9, 2024 12:22pm
Quoting _BBKing_
{quote}I set an (atm) outrageous Target
Could you please recommend an article (post?) in the ATM-family right about targets calculation? (Tp, SL ideas)
Thank you for your impressive posts here
Just an opinion. Based on research
  • #24,415
  • Feb 9, 2024 12:56pm Feb 9, 2024 12:56pm
Quoting since80808
{quote} Could you please recommend an article (post?) in the ATM-family right about targets calculation? (Tp, SL ideas) Thank you for your impressive posts here
thank you, you just reminded me my initial target was near 77!
the way I read any chart is pretty complex to be explained easy.
Have no by-hand links to recommend you.
But I will try to explain the easiest way I can..

the most important thing is to know the instrument, understanding why it moves, what are implications for it go up or down, and what is its inner behaviour, since every instrument has different characteristics. Oil is (imo) harmonic, and respectful. If goes down, it just goes. If goes up, it just goes. There is not much spikes, and overlapping or circles like you find in currencies. So I like it a lot, it reflects my personality…. Black, or white.

this being cleared, I have a long background in supply/demand bases, started here in the ages of redsword11 and his “price is everything” thread.
there you will find pages full of deep market understanding.

i bring the chart, and try to understand where price came down from and where came up from
then I apply volume profiles on major timeframes starting from monthly, till the very last 1h and check where are main rejections areas.

thats it.

done this, I wait for price to reach there and apply the rules, buy the suppport and sell the resistance.

coming to the point, in this particular case, oil reached a very key important support area into 71.
the are is a major.
the opposite major is the 77/79. Based on recent price action.
once price started bouncing from support, and printing important bullish volume profiles, the path was evry new day possible

In this thread you will find a lot of good info regarding volume profiles, and AMT.
“Price is everything “ thread you will find a lot of good price action rules
i also have a small thread “ https://www.forexfactory.com/thread/...?goto=lastpost
i use to post my stuff and remind me what to look for

i hope i have been useful
90% of traders use TA, indicators and prediction
  • #24,416
  • Feb 9, 2024 1:08pm Feb 9, 2024 1:08pm
Forgot
here I posted the initial idea about that particular trade
https://www.energyexch.com/thread/po...1#post14747191
90% of traders use TA, indicators and prediction
  • #24,417
  • Feb 9, 2024 1:34pm Feb 9, 2024 1:34pm
Quoting tuanyer
{quote} In Crude Oil is very diffrent the on how move Please see the + delta each day and will be more clear for you. {image}
Thanks @_BBKING for your insightful posts. I just recently started using Tradingview but I haven't come across your volume profile shown in this post (i.e with volume detal information). Please could you assist us further by sharing the name of the actual indicator on Tradingview.

Thanks.
  • #24,418
  • Feb 9, 2024 1:41pm Feb 9, 2024 1:41pm
Quoting egoli55
{quote} Thanks @_BBKING for your insightful posts. I just recently started using Tradingview but I haven't come across your volume profile shown in this post (i.e with volume detal information). Please could you assist us further by sharing the name of the actual indicator on Tradingview. Thanks.
I don’t use trading view
not yet
atm I use JForex, since long time I simply prefer it.
tradingview is great, and monthly pay is a bit
you have to subscribe for a payment account to use all features
90% of traders use TA, indicators and prediction
  • #24,419
  • Feb 9, 2024 1:57pm Feb 9, 2024 1:57pm
Quoting _BBKing_
{quote} I don’t use trading view not yet atm I use JForex, since long time I simply prefer it. tradingview is great, and monthly pay is a bit you have to subscribe for a payment account to use all features
Thanks for your response. I personally agree with you on the tradingview subscription cost.
Sorry, I meant to ask @tuanyer the question. I see he's the one that did the initial post about the indie.
  • #24,420
  • Feb 9, 2024 1:57pm Feb 9, 2024 1:57pm
Quoting tuanyer
{quote} In Crude Oil is very diffrent the on how move Please see the + delta each day and will be more clear for you. {image}
Thanks @tuanyer for your insightful posts. I just recently started using Tradingview but I haven't come across your volume profile shown in this post (i.e with volume detal information). Please could you assist us further by sharing the name of the actual indicator on Tradingview.

Thanks.
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