"A goal without a plan is just a wish" - Antoine de Saint-Exupery
Auction Market Theory and Market Profile
Hey Guys, I'm looking for Market Profile mini indicator that would drow the POCs for 1H and 4H periods. I found a ay-MP-mini indicator posted by Bandung earlier in this thread (attached hereby) but it is not working on my MT4, there is an error when i'm trying to compile it ? Does someone can help me ? Thanks in advance !
He might be busy making his first bucket of gold already, and same with Kave, Jamie & Claudia.
- #3,023
- Jul 25, 2011 10:50am Jul 25, 2011 10:50am
- | Joined May 2010 | Status: Day by Day | 1,004 Posts
Change is the only constant
- #3,024
- Jul 25, 2011 11:25pm Jul 25, 2011 11:25pm
- Joined May 2009 | Status: Trader | 1,879 Posts
Markets are not efficient, rather they are effective - Jones
- #3,027
- Jul 26, 2011 8:25am Jul 26, 2011 8:25am
- | Joined May 2010 | Status: Day by Day | 1,004 Posts
Change is the only constant
- #3,028
- Jul 26, 2011 10:40am Jul 26, 2011 10:40am
- Joined May 2009 | Status: Trader | 1,879 Posts
Markets are not efficient, rather they are effective - Jones
- #3,030
- Jul 26, 2011 9:24pm Jul 26, 2011 9:24pm
- Joined May 2009 | Status: Trader | 1,879 Posts
Markets are not efficient, rather they are effective - Jones
- #3,031
- Jul 26, 2011 10:25pm Jul 26, 2011 10:25pm
- | Joined Nov 2007 | Status: Trader | 1,157 Posts
Interesting……That bigger hump to the downside actually adds fuel to my bias
[font=Verdana]From my understanding of AMT is that the poc/hvn of a wide balanced profile acts as a magnet/gravitational pull to the center/place of attaction. The wider the base the harder it is to tip the balance. Price is drawn to the poc’s, as where lvn/valleys tend to repel price. It’s a place where no one had interest doing business. Imo I would think price will return quicker to where the most people felt comfortable trading (poc/center of gravity)...
I only read a few books on Market Profile, and listen to webinars mostly recommended by tgwhbb, and observed some of my charts based on Valleys and Peaks.
I still don't quite understand what is the difference in terms when people mentioned "AMT" versus "MP".
As you can tell, my terminology of MP not that well versed, so I just call it Peaks and Valleys for now.
Thanks tgwhbb for all your reference materials your posted.
Look at the webinar post provided by tgwhbb 9-Jul before he went on holidays, as the presenter show a longer term that may be helpful to you as well.
Below are more of my observations and interpretations.
We all assumed price will go back to the balanced area of POC.
But in order for price to be Balanced, it needs to be Im-Balance first.
The big hump/peak gives you an indication of down bias.
I see that as a really BIG hump.
So price need to be below the center of the hump before it goes down.
OR it needs a running head start to get over this hump, this means running upwards first to get a nice longer platform for a running start.
Now price is above the center of the hump, so my bias is still long.
Secondly and more important to me is that for it to have the "running head start" to get over a hump, it must first look out for im-balance area.
The closest im-balance area is the valley above the price where there should be "no business there" as you said.
So that is why I mentioned those above prices at the valley.
I don't normally look at weekly, monthly or quarterly profiles.
But l did look at daily profiles, and the interesting areas that appeared to me does not seem to be at the POC(Peak), but rather at the Valleys and the reaction there.
Thanks for the less CPU intensive indicators.
I most likely not use any coz I am on a netbook, even normal indicators with many many simple charts already affecting my MT4 screen, becoming white screen very often.
If you don't mind, I just look here for your charts whenever you got time to post them.
- #3,032
- Jul 26, 2011 11:33pm Jul 26, 2011 11:33pm
- Joined May 2009 | Status: Trader | 1,879 Posts
I still don't quite understand what is the difference in terms when people mentioned "AMT" versus "MP".
As you can tell, my terminology of MP not that well versed, so I just call it Peaks and Valleys for now.
Auction Market Theory is the study of markets based on a willing buyer and a willing seller and their intent to facilitate trade by bidding price until there is agreement on value. The theory is that individuals, with their perception of value will bid back and forth until value is agreed on and trade facilitated. Buyers and sellers are constantly bidding up and down until there is an area of price where the most trade is facilitated. That area will remain constant until the psychology of those buyers and sellers changes and they drive price either higher or lower. It is the psychology of the investment community (Behavioral Finance) and its reaction to information coming into that market that determines value.
Market Profile
is an indicator that charts the psychology of the traders and their determination of value. The perception of value and “unfair” price can be visually seen in the Market Profile chart. Therefore, the Market Profile chart is a graphical depiction of the psychology, emotions, failed decision process and “herd” instincts of the investment community. IMO trading MP indicator as you would any other static indicator (i.e. RSI,Stochs,etc.) can be very misleading without undrestanding the theory behind it.
Markets are not efficient, rather they are effective - Jones
Hi Claudia, TG & Alex & profilers.. long time no see & how is it going.
Manage to grap some trades today on EU & Echf using session profiles perhaps share my thoughts as usual.
Initially i took a trade on the open of european session;
-NY inventory was long.
-Asia did not take out NY & better still it close below it.
-European opening with test on & we see initiatives selling.
-Target to 4500 & 4475
*pass few session have been rotational on a normal variation day type. I be watching those previous sesison 1.5 & 2x IB for confluence those value area.
Current trade watching the rotational back up when price tested on the NY session anomaly & also the Asia session 2xIB as my reference. Entry is at 2xIB of Asia. Target to 4500 on 1st exposure...
EU is showing weakness, 4450 to 4400 should be the downside target to watch.
Manage to grap some trades today on EU & Echf using session profiles perhaps share my thoughts as usual.
Initially i took a trade on the open of european session;
-NY inventory was long.
-Asia did not take out NY & better still it close below it.
-European opening with test on & we see initiatives selling.
-Target to 4500 & 4475
*pass few session have been rotational on a normal variation day type. I be watching those previous sesison 1.5 & 2x IB for confluence those value area.
Current trade watching the rotational back up when price tested on the NY session anomaly & also the Asia session 2xIB as my reference. Entry is at 2xIB of Asia. Target to 4500 on 1st exposure...
EU is showing weakness, 4450 to 4400 should be the downside target to watch.
- #3,037
- Jul 27, 2011 8:15am Jul 27, 2011 8:15am
- | Joined May 2010 | Status: Day by Day | 1,004 Posts
Change is the only constant
- #3,038
- Jul 27, 2011 9:05am Jul 27, 2011 9:05am
- | Membership Revoked | Joined May 2008 | 3,395 Posts
The Market pays you to be disciplined
- #3,039
- Jul 27, 2011 11:11am Jul 27, 2011 11:11am
- | Joined May 2010 | Status: Day by Day | 1,004 Posts
Hi kave, good ot see you back (you too Claudia!)
my thoughts on chart. While i still think the 4260 level needs to get revisited, there doesn't seem to be much selling going on EU lately so she'll probably go higher first to find them...the previous top around 4580 seems like a good spot to find some...that's my target with this trade. Note how today's profile is looking like a 'P' - long liquidation break, with a poor high and good support around 4440. It looks like locals are taking it down to support, not other TF...
Change is the only constant