Auction Market Theory and Market Profile

Hello all you lovely traders

I've been watching the monthly profiles and trading intermediate supply and demand levels recently.

Monthly demand levels are totally my speed. On this time frame we've been one-time-framing up. We are currently above Aprils value area high, which is more significant because we're close to the end of the month.

March's value area high and POC are both still virgins (btw have you seen that silly virgin thread lol)

The most important thing here is that we're still OTFing and have been doing so for some time. We may see some responsive selling here and I'll be watching for the close of the month.

Actually I'm still having a hard time applying d over nite inventory idea in fx market.

Claudia, can u enlighten me on this?

hey Frank! Been a while! hope all is well.

According to James Dalton, the age of a trend can be measured by the value areas...VA's progressing farther away from each other indicate a young trend where we generally see the most movement. VA's that start to get close to each other indicate an aging trend, and VA's that overlap indicate an old trend and the start of balance. Your pic just reminded me about that as the VA's are progressing higher and moving further apart indicating increased strength...

a new version of my IB indi...no where near as slick as Bandung's but still useful

This version has IB volumes per session and weekly IB and an option to hide the daily IB lines and show only the weekly lines (useful in combination with Bandung's latest indy). Haven't gotten the weekly IB average just yet...time for bed...

Tgwhbb!! My dude, how was your vacation??

Wow cool concept

excellent! beautiful white sandy beaches and 35 degree weather (95 F). Fully recharged

Welcome back Jamie. That is the weather that I'm having minus d beach, all year long. (and I take it for granted. LOL)

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Just to share a chart, with multiple 30 min pin bar. (but price refuse to go down after 3 to 5 bar), so for those trader who cannot resist this and short it, now you can imagine their state of mind. thinking in their heart.......#$%^X#

Remember this is weakness appear in the wrong place in (VSA term) if this pin bar appear in down trend then this is a powerful signal.

heeeeeyyy.....

Remember, this is just my opinion.

This is all in theory. When mp was first created, it was based on rules of a market that operated for a limited numbers of hours. About 8. What about the rest of the world. In currency relative to where you sit in time. If I was a com trader in china my working day is @ 8hours. Once I’m done for the day I’m not “initiating” or “responding”. Anything that happens in the next 16 hours until my china open would be “overnight inventory” when I come in to trade the next day. and as in all stock markets, set open and close. Now the work day is done in china. Now if I was a comm. Trader in the UK relative to where I sit in time, it’s now my open and I respond to “overnight inventory”, what happens overnight from a London perspective is what? The Asian session. London comes in and responds to what happened in the previous session. from a US trader perspective,the market opens and they respond to what happened overnight, which is what, London session. So, in a 24h period we technically have 3 major open and closes. I am trying to follow the comm. Traders. So during Asian session I want to follow what they are doing. They have rules. Most com. Traders no matter where, start and end the day at zero sum. So at the end of their trading day will be closing positions and taking profits. Right before the next session. Thats why the next session squeezes to knock out remaining stops & weak hands. Because the overnight (previous session) traders have gone home, no one at work from the previous session with enough volume to defend or oppose the moves. But currency is a 24h market, but I’m trying to follow the traders who are active for limited hours. So I take the rules that apply to a limited-hour market with set open and close and apply it to a 24h market which has 3 major open and closes. For a 24h profile I don’t (imo) think the first hour of Asian session carries any weight as to how traders respond in London session or the US session. "First hour's open" refers to a market that is only open for 8hrs. One hour doesnt seem enough for a market that is open for 24hrs. Majority of the time we never return to it (1st hour of trading) . So I take the basic limited market hour rules and apply it to a 24h market with 3 opens and closes. Thats why I trade each sessions IB for that session. The next session, new open, new overnight inventory, new IB. One of the videos I posted covered some of this. He suggested that a 4h IB with DIBs levels to observe would be better for a 24h profile than the first hour of just the Asian session.The 3 hr video link I posted talked about measured moves using th IB. I now can apply that with the new indi. to observe and use Tgwhbb‘s indi. to monitor each sessions IB. But other than that I wouldn’t know how to apply “overnight inventory” to 3 major exchages whose overnight is relative to where they sit. Price, time, volume. I believe its all in the context. I hoped I help, with my interpretation of “overnight Inventory” for 24h market.

Your Awesome! Thank you so much!!!! It was already a great indi., but this is way cool!

Thanks Claudia, this interpretation did help me to understand the purpose of observing the over night inventory level.

James Dalton did crude oil analysis as well (which trade 24hr). Do you have any experience of reading his view? His video doesn't talk much about that.

Ive read both the books and have viewed all his online videos, I dont think ive read or recall his view on crude.. He will mention he trades and build his profiles using RTH "regular trading hours" (I think thats exchange hours) not the electronic Globex hours . I may be wrong. But also, look at the letter tpo's in his chart examples, a 24h profile should have @48 letters, 26 letters in a alphabet, so a 24h profile should have about 2 instances of each letter in the alphabet. sometimes his letters go no further than M @ 13 letters, 13 30m bars. That not a full 48 bars, from that perspective the other 12 hours mightt be "overnight inventory". I cant say that I recall seeing one of his crude charts but count the letters see if he builds his profile on 48 bars of info.

jesss... i think you need going to bed..
you need sleep sis... i saw almost 24 hrs you are online :-D

KG

EU long @ 4663. 1st target is weekly IBH @ 4713.

2nd chrt, VSA setup. 1st marked bar potential buying, 2nd marked bar squat confirm buying IMO.

currently at +20, set SL to BE+1

EDIT: target to greedy, stopped out...

That is still a good trade. Because the one time frame move is not up to us to control. As long as the capital is protected and they is always another opportunity.

indeed, currently back in long at 4639 with SL again at BE+1. debating what my TP should be...likely VAH at 4687

UPDATE: closed this one at +20 on what appears like no interest to go back into value. Plus with the FED head speaking in 30 minutes i'd rather be flat at the moment.

15M no demand bar right at VAL. tempted to short...

attachment no working at the moment, will post it later

Im still trying to find the best way to set up my charts. I just wanted to share the view of all the profiles. I love these new indis! I can get so much more info across the board. I can tell were testing the current wk vah. Im curious if it will return inside the previous wks vah?