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Auction Market Theory and Market Profile

  • #2,761
  • Jun 1, 2011 9:57pm Jun 1, 2011 9:57pm
Thanks Kave, will watch more anomalies info in your chart going forward.
Quoting Evak
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)...
  • #2,762
  • Jun 2, 2011 1:31am Jun 2, 2011 1:31am
FYI:
1: Asia inventory was long & London open test drive
2: London opening fail to take out Asia high & reverse within the B period.
3: Then it broke Asia low & eventually we see an excess. Excess break point now is clearer & in line with Asia low...
4: London now inventory is short.
5: Open drive just below POC & test the excess break point & reverse within the A period. Note also it goes back below the POC.
6: Eventually it took out London during the B Period, Balance a little prior going back down again.
7: Anomaly spotted in NY session could be revisited when London open..

Current session inventory is LONG
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  • #2,763
  • Jun 2, 2011 4:36am Jun 2, 2011 4:36am
I wasn't too sure about EU so I venture AU instead today but have suspicion base on the some of the principles that i'v mentioned b4 that EU is looking for value higher.

1: NY inventory was short
2: EU opening with initiatives with on a opening test drive like PA.
3: Due to NY Vertical development yesterday, anomalies are to be expected.
3: Notice the 2 anomaly (mark with an #) acting as a ledge bracketing the Asia session to eventual balance. Indicating acceptance.
4: Note that balance was filling the LUA zone, indicating new auction coming in which perhaps confirm the Intermediate time-frame trader in this area during NY session.
4: Since NY inventory was short, Asia session did not take out NY low & we find support on the the lower anomaly. we can assume the acceptance is looking value higher.
5: London open initiatives above value range, opening test on VAH. Then auctioning a little b4 moving up gradually.
6: Price has now took out the VPOC of NY.

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  • #2,764
  • Jun 2, 2011 5:02am Jun 2, 2011 5:02am
Just a quick one

1: NY inventory was short.
2: Asia open with initiatives but auctioning.
3: Weak shorts eventually have to cover as Asia reverse back up after taking merely taken out NY low.
4: Price visit the Anomaly (mark as #) which provide the upper ledge for Asia.
5: London open with responsive, but revisit the POC; Here it test & reverse..bingo.
6: London IB is below avg indicating RE to 1x at least, Volume is above avg (critical if it where to reverse or takeout any POC or anomaly)
7: Since Asia inventory is Long taking out the Asia high would indicate confidence (better if it show excess); plus one more anomaly to visit & VPOC way up..(i wish).

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  • #2,765
  • Jun 2, 2011 5:37am Jun 2, 2011 5:37am
Quoting Evak
FYI:
1: Asia inventory was long & London open test drive
2: London opening fail to take out Asia high & reverse within the B period.
3: Then it broke Asia low & eventually we see an excess. Excess break point now is clearer & in line with Asia low...
4: London now inventory is short.
5: Open drive just below POC & test the excess break point & reverse within the A period. Note also it goes back below the POC.
6: Eventually it took out London during the B Period, Balance a little prior going back down again.
7: Anomaly spotted in NY session could...
FYI...new play.

1:London open below POC
2:Test & reverse on POC & also on Asia low within AB period (bracketing moves). Note Volume is above avg.
3MI news release...C period being markdown prior to news release (indicative of tendencies to reverse, another word, good news), then reverse on transition to D period...
4: News was good, price heading north to take out Asia high..
5: Price pause just above the anomaly level; Excess & excess break point becomes visible now. Confidence increase
6: RE is 2x now given an average IB, this should be the limit. VPOC is tested..


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  • #2,766
  • Edited 9:05am Jun 2, 2011 8:52am | Edited 9:05am

  1. NY Inventory was short
  2. Asia open below range, with open drive with initiatives, (since responsive buyers already absorb during the S & T period of NY session) hence also the anomaly appearing at the low, which was tested & taken out within the AB period.
  3. Asia IB was very narrow, therefore RE should be wide, eventually ended with 3x after taken out POC.
  4. London opening test started above POC, driven down & then back up to POC level & also the opening price..indicating confidence since Asia inventory was actually LONG.
  5. London IB just below avg, indicating up to RE of up to 1x, more or less. Eventually Asia high was taken out. Selling tails is visible now, expect hesitation for next session perhaps.
  6. London vertical development created 2 visible anomalies, therefore tendencies of repairs back into these levels can be expected.
  7. Now London inventory is Long (excessive), Note selling tail almost tested previous NY high.
  8. NY open within range, met resistance at POC & now initiating repairs back down to the 2 anomalies indicated with #..till the auction is balance. There is a need to repair...

FYI

Attached Image
  • #2,767
  • Jun 2, 2011 2:08pm Jun 2, 2011 2:08pm
very quick drop on EU...anyone catch that? to the reversion to the mean trade near the top and closed at POC. EU creeping back up now but on lowering volume...could this signal the end of the current auction? we now have a selling top which has not been present since this up move started. also below, possibly some anomalies that need to get revisited (arrows).

NY balanced prior to NFP, but did so inside london VA. honestly not sure what to expect from EU tomorrow. maybe overnight will hold some clues...
Attached Image (click to enlarge)
Click to Enlarge Name: EU TPO 2011-06-02 at 2.44.57 PM.png Size: 192 KB
Change is the only constant
  • #2,768
  • Jun 2, 2011 9:27pm Jun 2, 2011 9:27pm
Is it possible to merge chart profiles using any of the indicators?

thanks.

-guandi
  • #2,769
  • Edited 11:40pm Jun 2, 2011 11:09pm | Edited 11:40pm
Quoting tgwhbb
very quick drop on EU...anyone catch that? to the reversion to the mean trade near the top and closed at POC. EU creeping back up now but on lowering volume...could this signal the end of the current auction? we now have a selling top which has not been present since this up move started. also below, possibly some anomalies that need to get revisited (arrows).

NY balanced prior to NFP, but did so inside london VA. honestly not sure what to expect from EU tomorrow. maybe overnight will hold some clues...
4hr chart volume looks climatic (my broker volume), I think we see excess this asia session. UT & fail tops.

With last 2 session up yesterday, excessiveness comes to mind. With Asia having tested NY high with Excess, is a case in point. We have to see if London where to take NY high again. (Let alone Asia high since we have excess already). Asia will be horizontal for most part, perhaps London too since it is NFP day. I suspect by London we may have a clue of what is to come...

Btw, i like your DIB display. Less cluttered...

PS: We do have very high volume yesterday on the dip to 4400...
  • #2,770
  • Jun 2, 2011 11:14pm Jun 2, 2011 11:14pm
Quoting guandi
Is it possible to merge chart profiles using any of the indicators?

thanks.

-guandi
Not the one we are using now which display text profiles..perhaps u can try this which is located in the attachment folder

http://www.forexfactory.com/attachme...2011%2012:13am

I was told this one does merge profile....not sure myself as i don't use bar histogram since the text profile came along.
  • #2,771
  • Edited 12:35am Jun 3, 2011 12:09am | Edited 12:35am
I am just trying to figure out the structure change the last few days from Thursday & here is my observation. Not a conclusion of any sorts.
* NOTE that Blue is Asia, Pink is London & Green is NY in the profile letters.

1: New auction starts on TUE with strong break out off Mon high. (P-day)
2: Inventory was deem excessive by end of Wed London session. NY open clearing the way with top excess trap taking out all the weak longs all the way down to Monday High. We have a liquidation break that clears the way for upside.

3:Auction reset by Thurs opening drive from Asia.
4 By London we have a break out with excess into key area 4400, moving vertically with no balance at all, up to above Asia high.
5: By NY Price dip back down on D period, pick up with high volume & reverse back up taking out both Asia & London high.
6: NY profile balance is still lacking symmetry with odd anomalies that could see some repairs down to Wed high.

So on Thursday itself we have Excess break in London which started the new auction, & NY traders not wanting to miss out on the action at 4400 decided to grab wholesale all way down to 4400 too. Of cause not forgetting liquidation break on Wed & the London Excess actually break above that. So this can't be weak longs inventory on NY, could it? hmmmm...

Just my limited observation. Pls comment as much as possible...is NFP day after all, anything goes..

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  • #2,772
  • Jun 3, 2011 12:47am Jun 3, 2011 12:47am
For the last three days EU hit 1.4515 which created 3rd SD and dropped to 1st SD which is VAH at 1.4477...as per MP since 06-01-11
Currently has either accumulation or distribution at VAH at 1.4477...depending on market perception for EU value.
The Market pays you to be disciplined
  • #2,773
  • Jun 3, 2011 1:32am Jun 3, 2011 1:32am
good morning everyone,

wow, so much to catch up on. Kave you are like the resident DJ, your views very insightful. I'm working through the JD vids, so much to learn!

Has anyone got the current letter to display a different colour option working with the ay-TPOChart-Session.v.100.mq4?

thanks
  • #2,774
  • Jun 3, 2011 1:50am Jun 3, 2011 1:50am
just my simpleton view, from JD's opening types is this not #4 open aution? Lowest confidence as price ranges up till NFP. As often on these fridays highs & lows are taken out before settling midpoint before the news.


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  • #2,775
  • Jun 3, 2011 2:08am Jun 3, 2011 2:08am
Quoting AlienTrader
good morning everyone,

wow, so much to catch up on. Kave you are like the resident DJ, your views very insightful. I'm working through the JD vids, so much to learn!

Has anyone got the current letter to display a different colour option working with the ay-TPOChart-Session.v.100.mq4?

thanks
Mine is set to to Sydney, London, & NY respectively.. If that is what you are asking...U have to adjust it in accordance to your broker server time....else you wont have the proper IB info required to assess the markets. Then just select the color of your choice..

Just be clear u are aking about the ay-TPOChart-Session.v.100.mq4, Not the other one that only show daily profile. OR Else refer to here;
http://www.forexfactory.com/showthre...70#post4608570
  • #2,776
  • Jun 3, 2011 3:39am Jun 3, 2011 3:39am
hi,

no I'm talking about the current period of letters being highlighted in a different colour, as the day indy does. The session indy has the input option but I can't seem to get it to work. Just checking if its the same for others.
  • #2,777
  • Jun 3, 2011 3:49am Jun 3, 2011 3:49am
maybe a pic of the day indy showing current letter period 'V' highlighted, & the session pic without.

ay-TPOChart.v1.02.mq4
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ay-TPOChart-Session.v.100.mq4
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all the 'F' letters should be highlighted white.

I don't think time session start times matter.

cheers
  • #2,778
  • Jun 3, 2011 4:13am Jun 3, 2011 4:13am
Hello AlienTrader,

I notice that you are using Alpari UK too, can you share your template and settings for both indicator?

best regards.

-guandi
  • #2,779
  • Jun 3, 2011 7:47am Jun 3, 2011 7:47am
Quoting Evak
I am just trying to figure out the structure change the last few days from Thursday & here is my observation. Not a conclusion of any sorts.
* NOTE that Blue is Asia, Pink is London & Green is NY in the profile letters.

1: New auction starts on TUE with strong break out off Mon high. (P-day)
2: Inventory was deem excessive by end of Wed London session. NY open clearing the way with top excess trap taking out all the weak longs all the way down to Monday High. We have a liquidation break that clears the way for upside.

3:Auction reset...
my thoughts in screen shot taken prior to NFP. i was bearish bias, but not really sure and therefore decided to watch and not trade. 1.4500 area expected resistance, shown in 2nd picture of monthly profile, 4530 represents the ledge of a small distribution and has capped the NFP bar.

there are still anomalies to be worked out in thursday's NY profile below between weekly IBH and 1.44 area. that area is also bottom of current trend channel.
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Click to Enlarge Name: EU TPO M 2011-06-03 at 8.46.38 AM.png Size: 158 KB
Change is the only constant
  • #2,780
  • Edited 8:34am Jun 3, 2011 7:50am | Edited 8:34am
Just a screenshot I wanted to post prior to NFP (due to serverload in FF) where EU have a mark down during "A" period. In most cases indicating reversal once news release...

EU revisiting POC, marking down prior to NFP.
Attached Image


I usually trade EURAUD on NFP...here is the similar PA of this pair.
Attached Image
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