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Auction Market Theory and Market Profile

  • #2,241
  • Apr 29, 2011 2:22pm Apr 29, 2011 2:22pm
Quoting mzvega
we are picking up vol as we are attempting to leave the IB low. I find this interesting that IB vol. has remained the same this far into the session. also london just closed. Hmmmmmm..........
Id like to think that is was selling vol., and that the pull back was just profit taking from the london session. again thinking outloud.
Markets are not efficient, rather they are effective - Jones
  • #2,242
  • Apr 29, 2011 3:01pm Apr 29, 2011 3:01pm
Quoting mzvega
we are picking up vol as we are attempting to leave the IB low. I find this interesting that IB vol. has remained the same this far into the session. also london just closed. Hmmmmmm..........
based on the time of this post, it looks like you are using london close time @ 2PM Eastern - which is 7PM London time. Curious as to why you use that time...i use 5PM london/12PM eastern as the london close...
Change is the only constant
  • #2,243
  • Edited 3:47pm Apr 29, 2011 3:33pm | Edited 3:47pm
Quoting tgwhbb
based on the time of this post, it looks like you are using london close time @ 2PM Eastern - which is 7PM London time. Curious as to why you use that time...i use 5PM london/12PM eastern as the london close...
I use gmt time I get messed up with BST. Frankfurt Stock market closes 11am my time 18:00 gmt. I set that back an hour because london is on BST different from gmt. I think. I use Frankfurt open & close

When I refer to london I mean the "european session"
I should be more specific, sorry.
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled picture.jpg Size: 53 KB
Markets are not efficient, rather they are effective - Jones
  • #2,244
  • Apr 29, 2011 3:55pm Apr 29, 2011 3:55pm
Quoting mzvega
Tgwhbb, could you decipher SOS & SOW? please
http://www.forexfactory.com/showpost...postcount=1881

Posted in reply to a question you had about VSA a couple weeks ago
  • #2,245
  • Apr 29, 2011 4:15pm Apr 29, 2011 4:15pm
Quoting mzvega
I use gmt time I get messed up with BST. Frankfurt Stock market closes 11am my time 18:00 gmt. I set that back an hour because london is on BST different from gmt. I think. I use Frankfurt open & close

When I refer to london I mean the "european session"
I should be more specific, sorry.
what site is that?
Change is the only constant
  • #2,246
  • Apr 29, 2011 4:20pm Apr 29, 2011 4:20pm
Quoting frankkn
http://www.forexfactory.com/showpost...postcount=1881

Posted in reply to a question you had about VSA a couple weeks ago
I remember reading the post and thats why I forgot, I cant retain all that

theres so many "if this", "then" this, "but only if" 2 bars ago "wait" etc.... I honestly cant retain any of that stuff. Ive spent alot of time trying. If I could turn all that "verbage" into reconizable pattens, I could pick it up quicker.
Markets are not efficient, rather they are effective - Jones
  • #2,247
  • Apr 29, 2011 4:22pm Apr 29, 2011 4:22pm
Quoting tgwhbb
what site is that?

Great site! you customize it for yourself.
http://www.marketclocks.com/index.php?1
Markets are not efficient, rather they are effective - Jones
  • #2,248
  • Apr 29, 2011 4:26pm Apr 29, 2011 4:26pm
Quoting mzvega
I remember reading the post and thats why I forgot, I cant retain all that

theres so many "if this", "then" this, "but only if" 2 bars ago "wait" etc.... I honestly cant retain any of that stuff. Ive spent alot of time trying. If I could turn all that "verbage" into reconizable pattens, I could pick it up quicker.
Just for you

WSU = wide spread up (closing off the lows)

UHV = Ultra high volume

This is your first sign of weakness (opposite for strength)

The UHV means only one thing: the professional side of the market is active

The pros are active as price is rising, this is because they need lots of buying to fill their sell orders
Attached Image
  • #2,249
  • Apr 29, 2011 4:28pm Apr 29, 2011 4:28pm
Without getting into too much jargon, this bar/volume combo may happen several times. You don't short on this alone, but it means that you put on a filter and start looking for the SOW that will follow, I'll go back to paint for the next thing you want to see
  • #2,250
  • Apr 29, 2011 4:32pm Apr 29, 2011 4:32pm
This is an up thrust

It looks like a pin bar. The most important thing about this bar is:

 

  1. It closes on/near its lows
  2. It is into fresh high ground
  3. Its volume is not less than the previous two bars

I like to see a down bar or a no demand within 2-3 bars

Attached Image
  • #2,251
  • Apr 29, 2011 4:33pm Apr 29, 2011 4:33pm
Quoting frankkn
Without getting into too much jargon, this bar/volume combo may happen several times. You don't short on this alone, but it means that you put on a filter and start looking for the SOW that will follow, I'll go back to paint for the next thing you want to see
I use this cheat sheet and I still find it difficult
Attached File(s)
File Type: xls VSABarDefinitionsv2(1).xls   49 KB | 644 downloads
Markets are not efficient, rather they are effective - Jones
  • #2,252
  • Apr 29, 2011 4:36pm Apr 29, 2011 4:36pm
Here is the entry bar. A no demand bar is a narrow spread up bar with volume less than the previous two bars. Short the break of the low with your stop above the up thrust.

There it is, wash rinse and repeat. Opposite for longs.

You can be aggressive by not waiting for the ND and shorting the UT, or you can take a ND after a sign of weakness. You only want to do this if you have confluence of other factors.

The other factors that I like for confluence are:

 

  1. Supply and demand zones from larger time frames than your entry bars
  2. Previous day VAH/VAL
  3. Unfair lows in up trend (opposite for shorts)

Edit: forgot to add chart

Attached Image
  • #2,253
  • Apr 29, 2011 4:38pm Apr 29, 2011 4:38pm
Quoting mzvega
I use this cheat sheet and I still find it difficult

Well here it is, it is not as complicated as you think.

Three steps, memorize them and it will take time but it is worth it. Once you get it, it is much more simple and you will see what I mean.
  • #2,254
  • Apr 29, 2011 4:46pm Apr 29, 2011 4:46pm
It's the weekend forget about the market for a couple days

Meant to post this here the other day but I posted it in Reds thread

Inserted Video
  • #2,255
  • Apr 29, 2011 4:53pm Apr 29, 2011 4:53pm
Quoting frankkn
Well here it is, it is not as complicated as you think.

Three steps, memorize them and it will take time but it is worth it. Once you get it, it is much more simple and you will see what I mean.
I appreciate your effort,
Ive followed both vsa threads since day 1. The first one started march, 11, 2009. Ive followed for 2 years and I have missed more trades, trying to work all that out in my head. I try to use what I can remember, but I cant use it as a methodology to base all my trades on. Im much more profitable with AMT & MP but I really cant spend more of my time on something that doesnt work well for me. 2 yrs is more than I care to spend. Im not a "Bright eyed bushy-tailed" college student, with plenty of years to burn
Markets are not efficient, rather they are effective - Jones
  • #2,256
  • Apr 29, 2011 5:00pm Apr 29, 2011 5:00pm
Quoting mzvega
I appreciate your effort,
Ive followed both vsa threads since day 1. The first one started march, 11, 2009. Ive followed for 2 years and I have missed more trades, trying to work all that out in my head. I try to use what I can remember, but I cant use it as a methodology to base all my trades on. Im much more profitable with AMT & MP but I really cant spend more of my time on something that doesnt work well for me. 2 yrs is more than I care to spend. Im not a "Bright eyed bushy-tailed" college student, with plenty of years to burn

LOL my parents refuse to text
  • #2,257
  • Apr 29, 2011 5:01pm Apr 29, 2011 5:01pm
Quoting frankkn
LOL my parents refuse to text
so do I!
Markets are not efficient, rather they are effective - Jones
  • #2,258
  • Apr 29, 2011 6:03pm Apr 29, 2011 6:03pm
Man, I missed out on a lot since I've been gone. Sorry everyone, day job killed my free time these last few days. I ended up taking a small loss on my EUR/USD position because I chickened out but not sweating a 0.8% loss. We'll get 'em next time. I hope everyone rocked some pips this week! I wish I had the time to trade as most of you folks do.

TG, I'm no one to question why someone would place a trade! If you're adding to a "losing position" I'd imagine you were trying to make more money!

Good trades everyone, looking forward to next week. Judging by some of the price action we've seen over the last two days, next week should be a challenge!
  • #2,259
  • Edited Apr 30, 2011 3:55am Apr 29, 2011 8:36pm | Edited Apr 30, 2011 3:55am
Quoting mzvega
I appreciate your effort,
Ive followed both vsa threads since day 1. The first one started march, 11, 2009. Ive followed for 2 years and I have missed more trades, trying to work all that out in my head. I try to use what I can remember, but I cant use it as a methodology to base all my trades on. Im much more profitable with AMT & MP but I really cant spend more of my time on something that doesnt work well for me. 2 yrs is more than I care to spend. Im not a "Bright eyed bushy-tailed" college student, with plenty of years to burn
VSA terms like up thrust, no demand and no supply.

Need to apply (appear) in the right place.

Don't short up thrust in the up trend. The right place to short is when it appear in the down trend.

Don't short no demand in up trend, The right place to short is when it appear in the down trend.

Don't long no supply in down trend, The right place to long is when it appear in the up trend.

(if the market decide to go on one time frame price action, many UT, NS and ND bar will appear to lure you in, and continue charging in the previous direction)

Gavin emphasize this over and over again in his video. but not many ppl pay attention to it.

imho, the knowledge to see the forest and the tree is still AMT & Market Profile.
  • #2,260
  • Apr 30, 2011 5:47am Apr 30, 2011 5:47am
seem everyone having fun here this week...
guys, nice discussion you have here

I wish there is forex market open during weekend.. lol

have a nice weekend
...
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