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Auction Market Theory and Market Profile

  • #2,741
  • May 31, 2011 2:23pm May 31, 2011 2:23pm
Quoting tgwhbb
folks, today is the end of May, and with a wide London IB EU should close off the month within the IB range between 4366 and 4412 IMO which is the top of the monthly profile as attached....
My view is similar & 4550 looking attractive target. I am thinking the march's anomalies were actually fill during april, that is perhaps why during month of May the price was traded down to POC of April....hmmm

Price was actually flirting with Value area High of monthly around 4400 today...
  • #2,742
  • May 31, 2011 4:05pm May 31, 2011 4:05pm
  •  s7c
  • | Joined Mar 2011 | Status: try and fail but don't fail to try | 289 Posts
because english is not my first language sometimes my thoughts are not well reflected into my words and that's why you misunderstood me. all i want first is to know which one from the indis would allowed me to split the 24h session into asian session and london+new york session and i want to use a weekly market profile too but with normal settings nothing special. and i know somebody explained on forum the steps to follow in order to get the best of the apps but i wasn't able to find that post. i installed the version ay-TPOChart-Session.v.100 but i still have the candles too on the chart and i don't know haw to take them out and that's all i have to do? i'm asking because as i said i'm not familiar with mt4 and the chart doesn't look exactly like it supposed to...

Quoting mzvega
Try setting asia session start hour the same as Londons start hour (@ 7-8 gmt depending on your personal preference) to get the profile to start building in the london hour. That would be for the daily.Now the weekly, Im not sure its possible how the code is written. It would be very complicated to change, the weekly profiles are based off Daily data, to leave out the asian session would not make sense to me, imo. The current asian sessions data would then go where? back into the previous week? wouldnt you have to wait for the asian session to end...
  • #2,743
  • May 31, 2011 5:02pm May 31, 2011 5:02pm
Quoting s7c
because english is not my first language sometimes my thoughts are not well reflected into my words and that's why you misunderstood me. all i want first is to know which one from the indis would allowed me to split the 24h session into asian session and london+new york session and i want to use a weekly market profile too but with normal settings nothing special. and i know somebody explained on forum the steps to follow in order to get the best of the apps but i wasn't able to find that post. i installed the version ay-TPOChart-Session.v.100 but...

ay-TPOChart.v1.02 set to W1 for weekly profiles
ay-TPOChart-Session.v.100 is for the asia london us profiles

Select the line chart to change candles to line, then go to properties(right click chart) and change line graph color to none

see if that helps
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Markets are not efficient, rather they are effective - Jones
  • #2,744
  • May 31, 2011 6:21pm May 31, 2011 6:21pm
Quoting Evak
Price have tested the excess break level in this NY session not to mentioned the one in London too. & bounce off it, strengths appearing as price now trading into fair price.

No anomaly spotted below the excess of Asia session may suggess no more interest for that area..perhaps...

Another Asia rally again?

Inventory is mostly short about 60/40...for NY
Attachment
nice call on the asia rally...

With the test day on Monday, strength looks likes its back on the longer timeframe...seriously debating holding my current long for a longer run...
Change is the only constant
  • #2,745
  • May 31, 2011 7:31pm May 31, 2011 7:31pm
  •  s7c
  • | Joined Mar 2011 | Status: try and fail but don't fail to try | 289 Posts
Quoting mzvega
ay-TPOChart.v1.02 set to W1 for weekly profiles
ay-TPOChart-Session.v.100 is for the asia london us profiles

Select the line chart to change candles to line, then go to properties(right click chart) and change line graph color to none

see if that helps
alright i got rid of the candles, thank you. but i tried to change the sessions open and it doesn't change, i have no idea why and to get vah, val, poc ..etc what i have to do? i like haw yours and evak's charts looks like, what i have to do to get there? by the way i tried to install the weekly version but some files have the same extension so in order to copy them in the right places i have to change their names or...?
i really appreciate your time spent to helping me and i saw in the past you had some questions regarding vsa if you still fell like you would like some help let me know...
  • #2,746
  • Edited 7:46pm May 31, 2011 7:43pm | Edited 7:46pm
Quoting s7c
alright i got rid of the candles, thank you. but i tried to change the sessions open and it doesn't change, i have no idea why and to get vah, val, poc ..etc what i have to do? i like haw yours and evak's charts looks like, what i have to do to get there? by the way i tried to install the weekly version but some files have the same extension so in order to copy them in the right places i have to change their names or...?
i really appreciate your time spent to helping me and i saw in the past you had some questions regarding vsa if you still fell...
In the indicator properties set session hours

no need to change files they work with both
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Markets are not efficient, rather they are effective - Jones
  • #2,747
  • May 31, 2011 7:50pm May 31, 2011 7:50pm
on weekly MP EURUSD is at 3rd deviation (1.4428)...
The Market pays you to be disciplined
  • #2,748
  • May 31, 2011 8:51pm May 31, 2011 8:51pm
thanks evak,
its working right now with my weekly profile.
after trying many times,must be put W1(capital letter) ,w1 can not work in profile time frame.
  • #2,749
  • Edited 11:51pm May 31, 2011 11:08pm | Edited 11:51pm
Quoting Evak
Price have tested the excess break level in this NY session not to mentioned the one in London too. & bounce off it, strengths appearing as price now trading into fair price.

No anomaly spotted below the excess of Asia session may suggess no more interest for that area..perhaps...

Another Asia rally again?

Inventory is mostly short about 60/40...for NY
Attachment
NOTE: I have move my Asia open to Sydney opening hours due to momentum buying that generates buying tails which in turn may be construed as Selling tail appearing in NY session profile, that is, if u set it to Asia open hour, so as to avoid any misinterpretation on my part. Another reason is the inventory of NY & the Asia session should not be mix since there is a 2 hour gap.

In this session profile chart:
Yesterday:
1: Excess break line provided a good reference for both UK's buying tail & NY session buyers too who do not want to miss on on the same action at the same level perhaps...
2: NY inventory is neutral, but price shifted back up & above fair value with NY fair value eventuate to the same as Asia. Signs of confidence.

Today:
3: Current Asia session opening drive push price above yesterday's high. Now finding acceptance is critical for any impetus up move when eurpean market opens.

Dip to DVAL may be a good trade location when UK opens.

Edit:
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  • #2,750
  • Jun 1, 2011 2:57am Jun 1, 2011 2:57am
1:The poor high generated during yesterdays London & excessive longs may have cause a dramatic liquidation break but today's poor low may indicated that GU may be going into rotation.

2:NY session LUA as indicated was filled in during Asia balancing trades today. Asymmetrical opportunity here as price dip to test NY fair value during European open prior to UK open. good trade location.

3:Anomaly@6520 indicated here may put a pause to this moves which estimated to 1xIB level given the above average IB range. A good target to reduce exposure. This can also be a decision point where price may decide or not to proceed further.

4:UK Opening test revisit Asia fair value & move back up into its opening level; indicating confidence going forward, Asia high is also taken out during IB period.

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  • #2,751
  • Jun 1, 2011 5:59am Jun 1, 2011 5:59am
Kave,
I have hard time understanding anomalies, can you please explain? Also what LUA stands for.


Quoting Evak
1:The poor high generated during yesterdays London & excessive longs may have cause a dramatic liquidation break but today's poor low may indicated that GU may be going into rotation.

2:NY session LUA as indicated was filled in during Asia balancing trades today. Asymmetrical opportunity here as price dip to test NY fair value during European open prior to UK open. good trade location.

3:Anomaly@6520 indicated here may put a pause to this moves which estimated to 1xIB level given the above average IB range. A good target to reduce exposure. This...
  • #2,752
  • Edited 8:06am Jun 1, 2011 6:40am | Edited 8:06am
Quoting skyscraper
Kave,
I have hard time understanding anomalies, can you please explain? Also what LUA stands for.
sure...

Allow me to quote from Robin Mesch News letter click here

LUA: Market Profile charts display where the participants have 'used' price, indicating acceptance (high usage) or rejection (low usage) of value.
So there is a tendencies for price to revisit such an area (LUA) & to eventuate acceptance if it have not been filled...

Anomalies are similar to POCs but appear as a single print jutting out of low establish profile area, lacking in structure & symmetry or appear uneven.
similar to LUA they have a tendencies for price to revisit or JD calls it repairs which i think refer to eventuate acceptance of price in this level on a later time...

e.g a chart of USDJPY(CORRECTION: It should be AUDUSD) two days daily profile, showing a anomaly & LUA & probable future value area where price could revisit for a full repair. Note that the anomaly here is situated within the LUA area. Coincidence?

Attached Image


references:
http://jamesdaltontrading.com/blog/glossary/
  • #2,753
  • Jun 1, 2011 6:52am Jun 1, 2011 6:52am
This short entry was made with the following context:

1:Asia inventory is long
2:UK open in range trading up but fail to takeout the Asia high & reverse back into its opening price & traded below it, all within first 2 period. This is open-rejection-reverse.
3: Entry is made when price did a slight recovery back into the opening price..

Trade was close since (exposure is reduce rather). when it hit close to 1xIB

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  • #2,754
  • Jun 1, 2011 7:55am Jun 1, 2011 7:55am
Quoting Evak
This short entry was made with the following context:

1:Asia inventory is long
2:UK open in range trading up but fail to takeout the Asia high & reverse back into its opening price & traded below it, all within first 2 period. This is open-rejection-reverse.
3: Entry is made when price did a slight recovery back into the opening price..

Trade was close since (exposure is reduce rather). when it hit close to 1xIB

Attachment
looks like similar US session start. closed my long from yesterday at the top of London VA. currently flat, waiting for break of NY low then look for short on backtest.

still getting used to understanding overnight inventory, so please correct me if wrong, but London was short, and Since no follow through prior to NY open, A period in NY was london short covering of short term holders. Now the question that remains to be seen is who bought that inventory. If other timeframe buyers bought, then that is sign of strength. How to identify that?
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Change is the only constant
  • #2,755
  • Jun 1, 2011 8:22am Jun 1, 2011 8:22am
Quoting tgwhbb
looks like similar US session start....
back in long. responsive buying below VA and rejection of NY IB low. target is top of VA to start @4430, then NY DIBH @ 4460
Change is the only constant
  • #2,756
  • Jun 1, 2011 9:10am Jun 1, 2011 9:10am
Quoting tgwhbb
back in long. responsive buying below VA and rejection of NY IB low. target is top of VA to start @4430, then NY DIBH @ 4460
first target hit...too bad i was already out of the trade didn't realize there was a news release 10 minutes ago and the PA scared me out...
Change is the only constant
  • #2,757
  • Edited 9:40am Jun 1, 2011 9:29am | Edited 9:40am
Quoting tgwhbb
looks like similar US session start....
First of all using inventory adjustment to trade session profile is primary for shorterm opportunity. So far the only way to gauge long term participants is to access range extension (RE) in relation the IB. General rule is the longer the RE the likelihood of intermediate or longer term traders are involve. Background info like buying/selling tails, excess & spikes also help..

As for overnight inventory or previous session inventory. Two Assumptions have to be bear in mind. Excessiveness & weak holders. e.g if inventory is long, the excessiveness weak longs is a concern. How Price react during the next session opening should dictate market confidence; to the previous highs or lows, where it opens below of above POC & reaction around it, value area, activity responsive or initiative...etc.

So lets start with EU asia: (My start hour now is Sydney not Tokyo)
1: Inventory was Long, therefore we have to account for excessivenes since it have move up 50 over pips since open.
2: IB was above average by more then 50%, we should expect a normal day. Eventually the RE was very limited. We can say that shorterm traders is in control here. One can assume a rotational day.
3: Value was overlapping higher & also off its open price. Indicating market is looking value higher..so where is the down side limit if market is trading at a higher fair value.

London session (asia inventory is long)
1: Opens above POC but tested it, did not rebound & go lower to VAL of Asia. Then swing back up take out Asia high & fail. then back to opening price again.. This create a lot panic for those weak longs of Asia, when they see reverse of price after asia high is taken out. IB
2: Volume was above average. what this means that if the by 2nd period the POC or any anomaly is taken out in the direction of the trade..that is usually the direction it intends to go. I am talking about tendencies here.
3: RE was 1X eventually indicating intermediate term traders may be at hand here..( since we are using session profile i do not refer to longer term traders) so are they buying or selling? next....
4: Then we price traded all the way below Asia high & sprung back indicating support & also support around 1.4400 price level (round numbers).

NY sesssion now (Note that profile is still under develop for now)
1: Opens IB is similar to London, opens below POC, dip & swing above it. then close back down. Since we are assuming rotational day given what we seen in previous 2 session we can assume similar for NY.
2: So far it looks like a Inside day session for NY since it did not take out any of the London extremes, DVA now is also inside VA of Londin.
3: We also have buying tails right now (profiles is still developing though)
4: Given that London inventory is short & we see support coming in..we can assuming strength coming in.
5: IB is below avg so expect potential RE but also could be hindered by previous session hesitations & rotational bias. There fore reaction to London high is important.


Just my opinion really, hopes this is helpful to u tgwhbb.

Attached Image
  • #2,758
  • Jun 1, 2011 11:57am Jun 1, 2011 11:57am
Quoting Evak
So lets start with EU asia: (My start hour now is Sydney not Tokyo)
1: Inventory was Long, therefore we have to account for excessivenes since it have move up 50 over pips since open.

Attachment
Errata: the above points should be reference to the UK session not prior to Asia session....
  • #2,759
  • Jun 1, 2011 4:10pm Jun 1, 2011 4:10pm
EU looks like other time frame sellers are back...
Change is the only constant
  • #2,760
  • Jun 1, 2011 4:14pm Jun 1, 2011 4:14pm
Quoting Evak
Fi
Just my opinion really, hopes this is helpful to u tgwhbb.

Attachment
thank you evak, will read this more thouroughly later...
Change is the only constant
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