Auction Market Theory and Market Profile | Page 256 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Auction Market Value Theory & Analytics 1,757 replies

market Theory 101 Supply and Demand,Market Cycles 7 replies

Market Profile And Volume Profile MT5 7 replies

MarketProfile/Volume Profile/Auction Market Theory indi? 17 replies

Market profile trader-Merged profile 0 replies

Attachments: Auction Market Theory and Market Profile
Exit Attachments

Auction Market Theory and Market Profile

  • #5,101
  • Feb 18, 2013 11:19am Feb 18, 2013 11:19am
Quoting MKFXTrader
mzvega,
Just to confirm that the directional performance relationship posted as table 4.1 attachment of post #5023 is used to analyze the end of day -vs- the previous day to gauge the directional bias for the upcoming day? Am I reading this correctly? Also haven't been able to figure out what OL stands for (line 4,5,13, ect...). Any books or manuals...
Yes that is correct. You can also apply that to the weekly monthly quarterly yearly. or whatever timeframe. You would always compare recently completed profile, to the previous profile for that tf.
Quote
Also haven't been able to figure out what OL stands for (line 4,5,13, ect...).

OL stands for overlapping to lower value. When comparing current value area to the previous days value area. The vol alone doesn’t tell you much. Directional performance analysis is a combination of "Attempted direction", "value area placement", & "volume". You would first need to determine the dir. Per. of the monthly to understand the context (Market condition). Low vol w/higher value could be an indication the trend is slowing (attempted direction is also a factor). But the same low vol, w/lower value, could be an indication of a very weak market. A rally in that context,(depending on the direction attempted, or having been in an up or down trend) could be short covering at best.
Quote
Can someone please explain how and what IBH, IBL, DIBH and DIBL, RF and QClose stands for in the ay_TPOChart?

The bar between the daily bar and the start of the letter profile is called the initial balance (IB). It is the first hour of trade (first 2 30m bars) Just like there is end of day analysis, there is something called "opening conviction" How price trades during the first hour of trade will give you an indication of the days pa. Any trade outside the IB is caused by longer TF buyers or sellers initiating or responding to price. The opening conviction at end of day helps you determine the "Attempted Direction".

It’s kind of pointless for me to continue to repost another explaination of dir perf. when knowledge of "opening conviction" is needed to determine the "attempted direction" part of the directional performance analysis. I recommend reading Mind over Markets. I don’t mind helping explain concepts, to those seeking help, however I would appreciate if you would read the first four chapters to get the basic concepts of the Auction Process before asking me to waste my time reposting the same answers the same questions that I’ve answered 79 or moretimes. If you don’t want to read the thread to find the answers, I would appreciate if you & others could read the first four chapters of mind over markets, before asking me for help. If you read the first 4 chapters it will give you a better explanation of the different parts of the indicator & how to read them then I could, IB(Initial Balance) Qclose (Quality of Close), RF(rotation factor) etc...........If you want to shorten the learning curve read the first 4 chapters of mind over markets.
Markets are not efficient, rather they are effective - Jones
  • #5,102
  • Feb 18, 2013 11:49am Feb 18, 2013 11:49am
Quoting mzvega
Yes that is correct. You can also apply that to the weekly monthly quarterly yearly. or whatever timeframe. You would always compare recently completed profile, to the previous profile for that tf.

[font=Verdana][font=Verdana]OL stands for overlapping to lower value. When comparing current value area to the previous days value area. The vol alone doesn’t tell you much. Directional performance analysis is a combination of "Attempted direction", "value area placement", & "volume". You would first need to determine the...
Thanks mzvega. I understand. I'll start reading the first four chapters of the book. This past weekend, I actually started going through all of your old posts, so things are coming along better. I even copied them and place them into microsoft word for reference. I have my charts set up. I like it much better then the volume indicator profile, I've been using for awhile now. You've contributed mightily to the thread and I Thank you. I appreciate your time and totally understand where you're coming from. Thanks again for everything. I would give u a vouch but being new here, is not possible.
  • #5,103
  • Feb 18, 2013 12:03pm Feb 18, 2013 12:03pm
Unfortunately, I no longer have the time to post & repost & repost the same posts because other people don’t want to spend their time reading a thread, (assuming that my time is far less valuable than theirs). I no longer have the willingness to help others who show no incentive to help themselves first (i.e. “search feature”, “attachment list”, the list of books & resource on the first page, etc……). For the many PM’s I receive that ask me to help them with some quick condensed version to the Auction Market Process, because they don’t have time to read the thread, Here’s the answer “Read the first 4 chapters of Mind over Markets”. It’s a waste of my time to continue to help others who don’t want to take the time to read the thread, or read the first four chapters of the subject before asking my help. I no longer have the time, patience, or incentive to help others who show no incentive to help themselves first. I begining to think my usefulness here has about run its course. I will no longer continue to answer the same "basic concept" questions that can be found by reading the thread, or that is covered in the first 4 chapters of the subject. Please refrain from the PM's or asking for my help until you have a basic understanding of these concepts........
Markets are not efficient, rather they are effective - Jones
  • #5,104
  • Feb 18, 2013 2:43pm Feb 18, 2013 2:43pm
Would like to know if someone can assist me with what the reason is 4 the volume color label in ay_TPOChart indie. I understand and have used BV in my trading so I know what it's used for but see no signals of volume to reference the color label in this indie. Am I missing something inside the settings parameters or not looking in the right place?
  • #5,105
  • Feb 19, 2013 5:56am Feb 19, 2013 5:56am
Guys,

I just noticed something.

Do not confuse Market Profile chart with volume profile chart.

The Market profile chart has TPO's printed on it and volume ,this is the correct way to view and understand market profile.

Volume profile is one showing distribution of volume only on a bar/candlestick chart. This may not be so accurate.

Is there any market profile indicator with TPO's for MT4 btw?
  • #5,106
  • Feb 20, 2013 2:51am Feb 20, 2013 2:51am
Quoting mzvega
[font=Verdana]Unfortunately, I no longer have the time to post & repost & repost the same posts because other people don’t want to spend their time reading a thread, (assuming that my time is far less valuable than theirs). I no longer have the willingness to help others who show no incentive to help themselves first (i.e. “search feature”, “attachment list”, the list of books & resource on the first page, etc……). For the many PM’s I receive that ask me to help them with some quick condensed version to the Auction Market Process, because they don’t...
accept my apology if i am one of this persons i will try to learn harder so as to not asking the same old questions

i have an advice that may help you :

1- don't replay to private massages from rookies

2- enter this thread once every 3 days (twice weekly) if you find a good question answer it and if nothing new close the thread immidiatly and enjoy your time
  • #5,107
  • Mar 4, 2013 10:52am Mar 4, 2013 10:52am
  •  s7c
  • | Joined Mar 2011 | Status: try and fail but don't fail to try | 289 Posts
Inserted Video
  • #5,108
  • Mar 6, 2013 1:48pm Mar 6, 2013 1:48pm
Hi,

I'm interested in market profile and think I grasped the basic idea and what the TPOs, Histograms, POCs, value areas etc. are about.
Reading several articles and watching youtube videos, however, I dont get it how this could improve my intraday trading.

Could someone please direct me to a basic example (real time trading situation), in this thread or elsewhere,
demonstrating the edge of market profile over standard trading using S/R at swing highs/lows + moving averages?

Thanks a lot
  • #5,109
  • Mar 8, 2013 9:32am Mar 8, 2013 9:32am
Hi, traders

Having read the book of J.Dalton and found it very helpful in everyday trading (investigating the sessions' market profiles), I set myself a task of understanding if there is a correlation between the dinamic (form and candles' set) of price action in the time of initial balance forming (first one hour devided into parts, for example, four parts of 15 min each) and price movements along the forthcoming session. I found that such correlation exists (I beleive, it should be), and the first four 15 min candles determine where the price goes afterwards.

So please, have a discussion upon this tesis.

Does anybody know what to read to clarify this task?
Hunting High and Low
  • #5,110
  • Mar 8, 2013 10:53am Mar 8, 2013 10:53am
Quoting Dr.Phoenix
Hi, traders

Having read the book of J.Dalton and found it very helpful in everyday trading (investigating the sessions' market profiles), I set myself a task of understanding if there is a correlation between the dinamic (form and candles' set) of price action in the time of initial balance forming (first one hour devided into parts, for example, four parts of 15 min each) and price movements along the forthcoming session. I found that such correlation exists (I beleive, it should be), and the first four 15 min candles determine where the price...
Im not quite sure if I understand what you refer to as "correlation". I think what you may be describing "opening types". Opening types (PA within the IB) is a great way to evaluate the market's underlying directional conviction. This info can be found in "Mind over Markets" page 62. "Open Drive" for example, if those first 4 15 min bars are "One Timeframing"(OT) rising & moving up without taking out the previous bars low, One timeframing is often an indication that the Larger TF participant is in control. So when the the market opens and price & starts to OTF, is a good indication that the Larger TF participants(Buyers or Sellers) made a decision to buy or sell before the open, and when the market opens they act quickly and aggressively. But you are definatley right, analyzing how price trades within the IB will give you more of an edge into which extreme has the greatest holding potential. The Open imo is one of the most important reference areas, without it its hard for me to determine "what the market is trying to do" and "How well of a job its doing". Most times the open sets the high or low for the day/session. "Open-Drive", "Open-Test-Drive", Open Rejection-Reverse", & "Open-Auction" are ways to determine the level of directional conviction.
Markets are not efficient, rather they are effective - Jones
  • #5,111
  • Mar 8, 2013 12:41pm Mar 8, 2013 12:41pm
Quoting mzvega
Im not quite sure if I understand what you refer to as "correlation". I think what you may be describing "opening types". Opening types (PA within the IB) is a great way to evaluate the market's underlying directional conviction. This info can be found in "Mind over Markets" page 62. "Open Drive" for example, if those first 4 15 min bars are "One Timeframing"(OT) rising & moving up without taking out the previous bars low, One timeframing is often an indication that the Larger TF participant is in control. So when the the market opens...
Thank you for your reply. You completely understand what exactly I mean. I suspected that the session movements are became formed right at the begining of session (the first one hour). And when I found it could be helpful for trading I began seeking for "correlations" between PA + IB and the price movements along the current session. So you have just confirmed that I am going the right way for intraday trading. Thank you. I am about to read "Mind over Markets"...
Hunting High and Low
  • #5,112
  • Mar 9, 2013 10:13am Mar 9, 2013 10:13am
Hi is there any code to export Market Profile data to excel or any other format.
I want to export data like POC,Value area High & Low,IB high & low of each day

regards
  • #5,113
  • Mar 19, 2013 11:10pm Mar 19, 2013 11:10pm
Quoting Indian
Hi is there any code to export Market Profile data to excel or any other format.
I want to export data like POC,Value area High & Low,IB high & low of each day

regards
  • #5,114
  • Mar 29, 2013 7:41am Mar 29, 2013 7:41am
Here is 2 charts on euro. One is showing each session separately and the other, all sessions but today's session, merged.
It seems we are trapped right now and even there is a pocket of low usage above us, which could make a case for short term up move, the merged profile shows a lot of barriers to be transposed if it have to go up.

Here are the charts:
Individual sessions:

Attached Image (click to enlarge)
Click to Enlarge Name: euro market profile.jpg Size: 229 KB


Merged profile:

Attached Image (click to enlarge)
Click to Enlarge Name: euro market profile merged.jpg Size: 171 KB


What are your views on euro based on profile?

Cheers!
  • #5,115
  • Mar 29, 2013 7:55am Mar 29, 2013 7:55am
Quoting joaoborras
Here is 2 charts on euro. One is showing each session separately and the other, all sessions but today's session, merged.
It seems we are trapped right now and even there is a pocket of low usage above us, which could make a case for short term up move, the merged profile shows a lot of barriers to be transposed if it have to go up.

Here are the charts:
Individual sessions:

Attachment

Merged profile:

Attachment

What are your views on euro based on profile?

Cheers!
joaoborras,
How did you get your profile to split on the 1st screenshot and also how were you able to get the merged profile? What parameters are you using to display both charts? Great observation. Thank you.
  • #5,116
  • Mar 29, 2013 9:05am Mar 29, 2013 9:05am
Quoting MKFXTrader
joaoborras,
How did you get your profile to split on the 1st screenshot and also how were you able to get the merged profile? What parameters are you using to display both charts? Great observation. Thank you.
Well, I'm using the indicator that Bandung coded.
The 1st chart is the default one, that shows all sessions individually.
The 2nd one, I merged all sessions previous to today.
Actually, I don't change any parameters in the indicator itself, only the sessions times.

Do you have the indicator?
  • #5,117
  • Mar 29, 2013 12:08pm Mar 29, 2013 12:08pm
Quoting joaoborras
Well, I'm using the indicator that Bandung coded.
The 1st chart is the default one, that shows all sessions individually.
The 2nd one, I merged all sessions previous to today.
Actually, I don't change any parameters in the indicator itself, only the sessions times.

Do you have the indicator?

Yes I use the indicator, but still haven't figured how to merge or show the sessions individually, like you show there in both attachments? I just have it on daily profile. Maybe you can help? Thx for responding.
  • #5,118
  • Mar 29, 2013 2:05pm Mar 29, 2013 2:05pm
I just wanted to share the most valuable piece of information Ive learned from the thread.........................

There is Definitely a reason as to "Why" 90% of all traders fail!!!!


just alittle food for thought.....................................
Markets are not efficient, rather they are effective - Jones
  • #5,119
  • Mar 30, 2013 12:55am Mar 30, 2013 12:55am
Quoting MKFXTrader
Yes I use the indicator, but still haven't figured how to merge or show the sessions individually, like you show there in both attachments? I just have it on daily profile. Maybe you can help? Thx for responding.
Oh, I see.
Ok, the explanations on how to merge and unmerge are in the images below.

How to merge:

Attached Image (click to enlarge)
Click to Enlarge Name: how to merge.jpg Size: 321 KB


How to unmerge:

Attached Image (click to enlarge)
Click to Enlarge Name: how to unmerge.jpg Size: 249 KB



And, to find each session number, just hover your mouse pointer on the session and wait a bit. A window will pop up withe the information.
Hope this helps.

Cheers!
  • #5,120
  • Mar 30, 2013 1:05am Mar 30, 2013 1:05am
Quoting mzvega
I just wanted to share the most valuable piece of information Ive learned from the thread.........................

There is Definitely a reason as to "Why" 90% of all traders fail!!!!


just alittle food for thought.....................................
That's a good point to think.
In my opinion, one of the possible many reasons is that, during our "loser" phase, we spend way too much time trying to figure out everything but price and how the market really works.
Too much time studying strategies, indicators, reading guru's books, reading tips, etc., etc. and too little time studying the market mechanics, how it really works.
In any market, the price movements are a function of liquidity. The market is always looking for liquidity.
Understand that and all the rest will fall in place, even the indicators! :-)

For example, if you have 10 minutes to think about moving averages, use this 10 minutes to answer questions like "where are the orders?" or "who is in control, buyers or sellers?", or even "if the there is none buying/selling here, where the price will have to go to find buyers/sellers?" and "what the market is waiting to trigger the next big move?". Things like that, I think.

Cheers!
12 traders viewing now