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Auction Market Theory and Market Profile

  • #2,621
  • May 20, 2011 3:01am May 20, 2011 3:01am
Will this week complete by travelling to the top of last week's range.....as I'm long off the 4300 HL just after LO, I hope so
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Trading Levels with WRBs
  • #2,622
  • May 20, 2011 6:09am May 20, 2011 6:09am
Enjoy watching

Inserted Video
  • #2,623
  • May 20, 2011 8:55am May 20, 2011 8:55am
Quoting Islander
Will this week complete by travelling to the top of last week's range.....as I'm long off the 4300 HL just after LO, I hope so
Id like to think so too. I closed 2 of yest longs @yest nydibh. And held one. This morning price really dropped. I took a couple of longs @ny IBH. I think my timings off on that one alittle (or alot). The day is starting to look like a double dist. trend day. But I still have some what of a bull bias. Ill hold for awhile before I scratch the trades.
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Markets are not efficient, rather they are effective - Jones
  • #2,624
  • May 20, 2011 12:47pm May 20, 2011 12:47pm
Quoting mzvega
Id like to think so too. I closed 2 of yest longs @yest nydibh. And held one. This morning price really dropped. I took a couple of longs @ny IBH. I think my timings off on that one alittle (or alot). The day is starting to look like a double dist. trend day. But I still have some what of a bull bias. Ill hold for awhile before I scratch the trades.
My timing for entry today (ny session) was really bad. I should have had more patience. The last 3 days va's are equal, forming a longerterm balance area. a test of the 5/17 poc & val would have been a better place to enter also being below current days va (on sale). Im hoping to gracefully BE and close all longs before the close, I added to cover my bad entry.
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Markets are not efficient, rather they are effective - Jones
  • #2,625
  • Edited 7:08pm May 20, 2011 6:53pm | Edited 7:08pm
Quoting mzvega
My timing for entry today (ny session) was really bad. I should have had more patience. The last 3 days va's are equal, forming a longerterm balance area. a test of the 5/17 poc & val would have been a better place to enter also being below current days va (on sale). Im hoping to gracefully BE and close all longs before the close, I added to cover my bad entry.
Hi Claudia,
Thanks for sharing your chart, your buy from 4080 area was a good trade location, but when price drop this morning during london open, did you move your SL for lock profit at higher level? personally I think it is a bit too much to give back.

Also it is friday, especially day trader will go home without any position.

For me I took my short at the break of IBL london open all the way till NY open.

Talk about being flexible I'm quite stubborn on holding my view, and I got fried last week and this week I managed to recover my losses. Really need to re-adjust my style of spotting good trade location with lower risk in the coming week.

add on.

Also I just cannot ignore the health of the One Time Frame Up day, all up move was not supported by higher volume. (I rather look at it like someone is manipulating the price) to attract more buyer.
  • #2,626
  • May 20, 2011 11:47pm May 20, 2011 11:47pm
Quoting Evak
Yesterdays London session Balance structure of a Normal Variation Day seems provide the precursor for the moves in NY.

With opening on NY drive down from open only to be reverse back up to be close above London session low-indicating strengths coming in. This session end up mostly long.

So today asia session opening was to watch for reaction on Previous NY POC. Then, price opening drive hardly venture down to POC & stay above it with narrow IB.

Price broke out of IB & rally above all the previous sessions high.

My long entry is on pullback...
is that windotrader blue mr. evak...?
have a good weekend everyone...
...
  • #2,627
  • May 21, 2011 2:12am May 21, 2011 2:12am
just a thought -

i have been thinking about IB definition regarding weekly tf: classically, IB is defined as price range resulting form market activity during the first two time periods. now the trick is, what does a time period mean for weekly? given the continuous market activity in forex, i think a better approach would be to consider the first two major sessions of the week - tokyo and london - instead of the first two days of the week.

what do you guys think?
Nihil Sine Deo.
  • #2,628
  • May 21, 2011 3:38am May 21, 2011 3:38am
Quoting Evak
Earlier trades was scratch as EU decided to test 4220 area.

Super wide IB suggest shorterm traders in control with limited rx, may to asia session VAH at most. Ideal trade location would then be below IBL.

My re-entry was made after LO..

Took out 1st position on target of previous session POC, remaining on hold..

Attachment
Hello Evak, i was seeing your charts... in your right chart, you have the ivolume indicator and in your candles i see other indi... where can i find this two indicators? (ivolume and candles)
Regards.-
  • #2,629
  • Edited 6:30am May 21, 2011 4:23am | Edited 6:30am
Quoting Scrat
just a thought -

i have been thinking about IB definition regarding weekly tf: classically, IB is defined as price range resulting form market activity during the first two time periods. now the trick is, what does a time period mean for weekly? given the continuous market activity in forex, i think a better approach would be to consider the first two major sessions of the week - tokyo and london - instead of the first two days of the week.

what do you guys think?

I am fine with first 2 days actually. Statistically Mondays are alwas lull in nature u can see it if u set the IB to 1day; IB are mostly narrow or too small to tell mostly, tuedsay activity may be more indicative.

Or u can set it to 1day+London session, so IB is set to H4x9...that is to assume that by Tuesday's NY session we should have a proper gauge of what profile type is to be expected for the week...

If i may add...

for day profile (24hours day or ETH) my preference is Tokyo open, IB = H4x1 or H1x4, data on H1. (for Session data as per normal IBx2, data on M30.)

Weekly; IB=D1x2 or H4x9, data on H1.

Monthly; IB=D1x3, data on H4

Quarterly; IB=W1x2, data on D1

Yearly ??

Perhaps the rest of u like to share your settings also....

addendum: Generally speaking IMHO, IB's idea should be similar to Pareto principles of 80/20. So roughly an IB should be set to 20% or up to 25% of the whole profile period in concern...makes sense? anyway just a thought..
  • #2,630
  • May 21, 2011 4:53am May 21, 2011 4:53am
Quoting bandung
is that windotrader blue mr. evak...?
have a good weekend everyone...
Nah is Bandotrader "BLUE" nice weekend to u too.

Long time didn't hear from you, I presume u are working on major updates to the indi...

Anyway tks for non-dll version of the mp-session..appreciate it.

nice weekend to u too.
  • #2,631
  • May 21, 2011 3:07pm May 21, 2011 3:07pm
Quoting Scrat
just a thought -
,
Quoting Evak
..

What does IB has to do with supply and demand?...in other words why is IB so important?
The Market pays you to be disciplined
  • #2,632
  • May 22, 2011 12:37am May 22, 2011 12:37am
Quoting Aesg
Hello Evak, i was seeing your charts... in your right chart, you have the ivolume indicator and in your candles i see other indi... where can i find this two indicators? (ivolume and candles)
Regards.-
ivolume is just a rename of crdw volume; http://www.forexfactory.com/attachme...0&d=1238487408

Candles are just HLC bars; http://www.forexfactory.com/attachme...3&d=1245356232

SR levels are http://codebase.mql4.com/3150 (essential they are fractals);
  • #2,633
  • Edited 3:49am May 22, 2011 3:33am | Edited 3:49am
Quoting mima
,


What does IB has to do with supply and demand?...in other words why is IB so important?
First of all it has nothing to do with supply and demand...

IMO IB is the core of getting the best out of market profile.
IB range sets the tone for any potential day type for which one can determining whether a high or low is being set
within the IB range or outside &/or to what degree of range extension we should expect.

e.g. If it is wide IB then tendency is the extremities may tend to hold with very little range extension, or
instead we have a narrow IB then we could have a trend day in which the tendency to extend beyond the IB range.
Therefore a MP trader uses such info to plan his strategy..

Of coz one have to take into context of avergae IB range as compare to current IB range, session average range & so
forth in order to extrapolate the tendencies.

e.g. If let say during a typical asia session. We have IB range of 23 in pips. As 85% or more of day's range is
formed in the Initial Balance period for a NORMAL DAY & we have IB average of 25 & avg asia session trading range
is 45. then we know we have about up to 22 pips room to go for profile to expand. Thus we could be expecting
instead Variation of a Normal day types to form for this session. Hypothetically if Asia's IB is 42 instead, then we could expect a non-trend day type thus the chances of price extending beyond the IB extremes is very low & room to go is only 3 pips.

Simply put we are talking about statistical trading here & MP is in essence the measure of statistics & its tendencies.

ref:
tgwhbb's IB indcator do show the IB average for each session & also session avg volume which is also use to
determine certain parameters. pls refer to here. http://www.forexfactory.com/showpost.php?p=4608757

As for session average trading range. I am not sure if there is an indi? perhaps tgwhbb can include such info
in the future.

Of coz one can use daily ADR indi to plan withing the day limits.

As for Market profile's day types do google for info but here is a brief info:
http://www.mypivots.com/dictionary/d...file-day-types
  • #2,634
  • May 22, 2011 5:06am May 22, 2011 5:06am
Quoting Evak
First of all it has nothing to do with supply and demand...
Thank you for taking time to explain IB
The Market pays you to be disciplined
  • #2,635
  • May 22, 2011 9:10am May 22, 2011 9:10am
Quoting Evak
First of all it has nothing to do with supply and demand...

IMO IB is the core of getting the best out of market profile.
IB range sets the tone for any potential day type for which one can determining whether a high or low is being set
within the IB range or outside &/or to what degree of range extension we should expect.
Excellent post! the tricky part IMO is that we are dealing with 3 sessions every day. for EU, the london session generally controls the day, but that of course is not guaranteed so care must alays be taken.

The same applies on the weekly profile/IB. Last week's IB was close to 200 pips, wide compared to the average, and what happened, EU did not extend much above or below its IB.

for EU, both the monthly and weekly are one-timeframing down, and it closed the week on the VA low, with POC's developing lower. Care must be taken though, as the weekly POC is near 4260, so price could go visit that before continuing down.

I came across this site yesterday, quite interesting: http://www.cmegroup.com/trading/fx/g...es_globex.html

Based on FX futures so it has slightly different price/volume data but ives me more confidence than my broker sometimes. What's very interesting are the MP volume charts. Take a look: http://www.cmegroup.com/trading/fx/g...es_globex.html
Change is the only constant
  • #2,636
  • May 22, 2011 2:31pm May 22, 2011 2:31pm
Quoting Evak
ivolume is just a rename of crdw volume; http://www.forexfactory.com/attachme...0&d=1238487408

Candles are just HLC bars; http://www.forexfactory.com/attachme...3&d=1245356232

SR levels are http://codebase.mql4.com/3150 (essential they are fractals);
Evak, Thank you very much.-

Regards.-
  • #2,637
  • May 22, 2011 11:53pm May 22, 2011 11:53pm
Quoting tgwhbb
Excellent post!...
Ah interesting CME stuffs, tks.

Looks like 1.4 for EU next with this morning drift..Normal variation day in Asia with profile xtending the IB down to 1x, indicating longer time frame is in control. asia session range is about 75 estimate..we are about there now but 1.4 should be where it is heading...
  • #2,638
  • May 23, 2011 12:49am May 23, 2011 12:49am
Daily profile opening test drive seems to sets the tone with IBH looking set to hold, Normal variation day type likely here with rx down to 1x or 1.5x..just my take on this...any comments welcome..

Of coz price can also extend all the way back up to previous day VAL or IBHx1, if so we could see a Neutral day type.

PS: btw @tgwhbb do u have a IB indi that one can set the IB period ? coz my chart is on IB of H1x4..tks. If not i wonder if @bandung can extend on more color to show up to 2x of IB.

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  • #2,639
  • May 23, 2011 12:57am May 23, 2011 12:57am
Quoting Evak
Daily profile opening test drive seems to sets the tone with IBH looking set to hold, Normal variation day type likely here with rx down to 1x or 1.5x..just my take on this...any comments welcome..

Of coz price can also extend all the way back up to previous day VAL or IBHx1, if so we could see a Neutral day type.

PS: btw tgwhbb do u have a IB indi that one can set the IB period ? coz my chart is on IB of H1x4..tks.

Attachment
Hi Evak,

I need to see a clean break of last week IBL at 4049 to anticipate lower price. London open will be interesting to observe. Play by what ever it unfold.
  • #2,640
  • May 23, 2011 1:05am May 23, 2011 1:05am
Quoting alexm
Hi Evak,

I need to see a clean break of last week IBL at 4049 to anticipate lower price. London open will be interesting to observe. Play by what ever it unfold.
Yeah the last monday low....miss that...:S

Actually the last friday's low part of the double distribution do have afew anomalies that may get repairs...
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