Auction Market Theory and Market Profile

Nice

check out the price reaction to yesterday VAH, with 30min 2 bar reversal, it break right tru yesterday POC and if still cannot find buyer here (according to the market delta strategy), yesterday VAL 1.3438 will be the target.

I think VSA finally found his valentine AMT.

Here's what it looks like from my perspective on the 5 min. My profiles start at 0300 New York time.

hi HG...

mmm buyer sitting on previous 4 week poc (which is virgin before the start of this week), and they didnt tell anybody...

previous 4 week poc confluence with monday poc..

Hi bandung,
I use your indicator ay-marketprofileDWM, but I don't get the same yesterday level of POC like in your chart.

Thinkorswim chart have the same level of yesterday POC at 1.3484, same with my MT4 chart.

Thank you Bandung and Fudomyo for sharing the indis!
What is the difference between the two? Today, price reversed at the Virgin's yesterday's POC, but AY's yesterday's POC is situated higher...
Can the VirginMP indi show today's profile, too?
Thank you much!

Hi HiddenGap,

Can you tell me how you change the start time of the Price Histogram in Ensign. Mine starts with the 17;00 EST daily candle start. I would like to run a 3:00 EST start also.

Thank you in advance

been watching this thread for a while now, and finally joined hoping to post some thoughts as well. I used to trade the NQ on market profile but have since changed due to my full time work schedule to forex.

I have a question for you guys do you use time based or volume base market profile charts? I'm guessing time based due to volume issues but just wondering.

I like to use a euro futures chart for volume base market profile and trade eur/usd off that. levels are a little different but not by much.

In the properties window select restart time under study mode. Then in the upper left corner under Parameters the third one down is restart. Input 0300 or 300 in that box. This will change the start time of the histogram not the start time of the daily bars.

That has to be down under symbol properties and I am still trying to figure it out.

Welcome. Can't wait to hear some of your ideas.

I prefer volume because I am a VSAer as well and therefore volume plays an important role in my thinking. Again, there IS volume in spot forex. It is tick volume and not actual traded volume but it works great. And as you may already know, the original inception of MP was that TPO counts were a proxy for volume. Volume was not available at the time except through the LDB (Liquidity Data Bank).

For those that use MT4, I don't think there is indicator for MP based on volume...

Today has been a dream day for AMT. We have basically been balancing all day and all an AMT trader has had to do is sell the unfair highs and buy the unfair lows (of the developing profile).

The VSA trade I took was a bit different and a really great learning opportunity.

Take a look at the chart below.

Notice that the Hidden Up Thrust takes us out of the value area into unfair high territory. Some would simply buy as they see price above the DVAH. Others may wait for the bar to close. Those using candles would see the "topping tail" as supply entered. As a VSAer, I was looking for the No Demand as an entry.

Most here are using VSA, but I do not want to get into it here as the main focus is Auction Market Theory. Actually, what I want to focus on goes beyond AMT and to the essence of successful trading in general. When I saw my entry signal, two questions were on my mind. What's my risk? And, what's my potential reward?

Well, the risk is easy. A stop just above the high of the Up Thrust which would put price in the unfair high territory. The reward was a bit more interesting. As previously noted, today was a great day to sell the unfair highs and buy the unfair lows. Now we are a bit into the value area and the unfair lows at the DVAL is pretty close (circle with the number 1). The reward is greater than the risk but not by much.

However, my thinking was this. If we get past the DVAL there is good chance that we touch the VAH (previous day's profile). Now the reward is even greater. And if price closed within the VAH then there is an 80% chance that price moves down to the VAL at 1.3449. Before it gets all the way down, however, we could find support at today's IBL at 1.3466.

So an entry at 1.3530 with an ultimate target of 1.3449 a possible target of 1.3466 and a likely target of 1.3483. With any of these targets the risk is small 1.3530 to 1.3546 (two points above the high of the Up Thrust). No brainer. Take the trade.

Turns out that we did move to and through the VAH, however we closed above it on stopping volume. I exited on the close of that bar.

**EDIT** For the VSAers, you will note that I entered early. I did not wait for a breach of the ND low because I was looking at structure.

Does anyone has pdf of "Markets in Profile" by Jim Dalton?

You should read Mind Over Markets first.

I took long on USDCHF at 0.9660 which is unfair low...It might be just short scalp for a few pips...

Thanks, both are on the list...

Paying attention to trend has its pluses and minuses. The current trend is down, but there were ample opportunites to take longs at the unfair lows today and make money. And that has more to do with the day type today was/is (profile doesn't stop until 0300).

But this how I see the trend over the last few days. If I went back 4 more days, you would see three down POCs prior to the two up POCs at the begining of this chart. That would imply that the first two profiles were retraces within the larger down trend.

I've been keeping it simple with bounces off of previous day's VAL/VAH.

Here's one from today. I caught a bounce off of yesterday's VAH/last week's low.

I was stopped at BE, price narrowly missed my TP.

OK, let's do some home work for today.

1. We have higher POC.
2. Price Open within yesterday Value area.
3. 50 sma cross 100 sma.

I will apply Responsive Activity Strategies for the day and Buy the pull back at DVAL or yesterday VAL.

a. Check volume when price approaching VAL
b. Look for NS bar and place buy order above.

Also here's some music to prepare as well.