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  #21 (permalink)  
Old 25-12-2016, 10:35 AM
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Originally Posted by novicetrader View Post
Go through Market Micro-structure materials if you can, to understand the market auction process more deeply.

wht is mkt micro structure??
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Old 25-12-2016, 11:12 AM
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Originally Posted by sherbaaz View Post
wht is mkt micro structure??

https://en.wikipedia.org/wiki/Market_microstructure

see the link, some list of authors are given
one can start with O'Hara 's book, it is good .

Here is an excerpt
Quote:
Markets have two principal functions according to O’Hara (2003). They are provision of liquidity and the facilitation of price discovery. Clearly asset prices evolve
in markets. This evolution is influenced by the nature of players in the market and the trading system in vogue. Traditional market microstructure literature has categorized
traders based on their information system – informed traders and uninformed traders. Informed traders have an informational edge regarding the stocks that other
traders do not possess. They exploit this informational advantage while trading with others. The uninformed investors trade for noninformational reasons. In some cases,
they are termed as “noise traders,” since their trade is based on their beliefs and sentiments that are not grounded on fundamental information. Information is revealed
to the market through the trading activities of informed traders.

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Old 26-12-2016, 11:52 AM
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developing a trend day poc changing to downwards direction

but shape of the day looks like as of now NORMAL VARIATION OF NORMAL DAY.

(this is first official day with daytype )
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Old 26-12-2016, 04:56 PM
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plz advise the day types of today just little clarification required .
sorry no offense from myside.
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Old 26-12-2016, 05:11 PM
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Originally Posted by nTuple View Post
plz advise the day types of today just little clarification required .
sorry no offense from myside.

Day type should be normal, no range extension. But profile is b shaped suggesting long liquidation.

regards.
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Old 27-12-2016, 02:35 PM
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3 R day 3 I day :
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Old 27-12-2016, 05:48 PM
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looks like a neutral day as there no range extension ...
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Old 27-12-2016, 10:09 PM
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day type

http://vtrender.com/market-profile-day-types-4/


We seem to be having an enthusiastic bunch of readers who want to know more about Market Profile. I am all for enthusiasm and never the one to put down will.So without further ado, let’s add to the classroom these notes on the different day types.These are important for you to understand if you are a serious day trader.



Normal Day



The most basic day structure is the Normal Day. It is easy to follow and understand as most of the day activity is in theInitial Balance or the first 60 minutes of the day session. On a normal day the bell curve also develops within the range of the initial balance( IB) , and does not go much beyond the initial balance. There is often limited range extension and the market returns into the IB for the close.





Normal variation day.



This is the most common of the different day auctions we see in Market Profile. On this day we will see a range extension outside the Initial Balance and often the market continues it’s probe on the same side as the break aboveInitial Balance and goes to complete it by extending to 2 times the Initial Balance Range ( high to low) and in some cases even 3 times.



On a Normal Variation day the first 30 minutes are often spent above/below the previous day’s value area and price seems to suggest a rejection of that value. We also see value built higher/lower on such days and is a pointer for continuation in the coming sessions.


Neutral day

This is again a Day based on the Initial Balance or IB.

In this day we find the the Initial balance is slightly smaller than a Normal day or a Normal Variation day. Price makes a move away from this initial balance early in the session but is not successful in creating a good range extension. It then comes back in the IB and travels through the IB and makes an attempt at a range extension on the other side of the IB.



Accordingly based on the second attempt of the range extension we have 2 types of Neutral Days



a) Neutral Center : In this type of day the second attempt of the range extension is also not successful like the first one and the market comes back into the IB and closes near the day center or midpoint or even Vwap or Dpoc. On such days we consider both the buyers and sellers as equal in strength and the close in the middle as a fair close.



b) Neutral Extreme : In this type of day the second attempt of the range extension is successful and the market finishes the day at one extreme which is often the day’s highs or lows as the case may be . In this day type either the buyer or the seller is considered more stronger than the other and gives us a very good context to watch for continuation.



Non trend day

This is characterized by a narrow range day with a fat profile. There seems to be random rotation with little price movement on either side of the profile, thus developing a short and fat profile.



These days can occur prior to important announcements, long weekends or holidays, or at market exhaustion points. Most traders will simply complain that the market is choppy and untradable on these days.



It is when the market is making a narrow range that a large range, and possibly trend day, will occur in the next day or two.





Trend day

A trend day will usually begin with a small initial balance, However, early in the day structure range extension occurs. This range extension does not allow a value area to develop in theinitial balance, and the range extension continues throughout the day. These days are seen as having Higher Highs and Higher Lows ( OR LH/ LL) in every 30 minute period .



There are often periods of single prints on the profile. Most important, there is very little rotation from time period to time period. In other words, each half-hour segment drive prices further in the direction of the trend.



Sometimes one of the time segments will have a bit of rotation in the opposite direction, but price usually will resume the trend. In such cases we keep an eye for a pull back high or a pull back low to develop which is the afternoon adjustment of inventory.The range of a trend day is wide and the profile absent, rotation is thin. Obviously the open will occur at one end of the trend day, and the close will be near the opposite end.





Double distribution trend day



A variation on the trend day is the double distribution trend day. This day starts off much like a trend day, however there begins to be rotation with a bell curve beginning to develop during much of the day. It appears that more of anormal variation day will result.



But then new information enters the market and range extension occurs and drives prices to a new area. At some point the move is shut off, usually overshooting, and then another bell curve begins to develop. The resulting profile will have two areas of price rotation, which are usually separated by an area of single prints.



These days can often occur on surprise announce or event occurs. The market goes from balance, to imbalance as the news drives the market to a new level, and then back to some sort of balance as the news is digested.
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Last edited by nTP; 27-12-2016 at 10:29 PM.
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Old 27-12-2016, 10:43 PM
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Originally Posted by nTuple View Post
day type

http://vtrender.com/market-profile-day-types-4/


We seem to be having an enthusiastic bunch of readers who want to know more about Market Profile. I am all for enthusiasm and never the one to put down will.So without further ado, letís add to the classroom these notes on the different day types.These are important for you to understand if you are a serious day trader.

BIG SNIP

Do you care to go thru the rest of this forum? There is a Market Profile section on this forum. All this and a whole lot more has been shared there.

e.g. Distribution Day Types

This forum is one of the best resources for learning MP in the context of Indian markets. Dont waste time looking elsewhere.

Some of these older threads have images that are not available anymore. But you can still get a lot of idea from whatever images still remain on them.

-- no1lives4ever
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Old 27-12-2016, 10:49 PM
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Originally Posted by R.M. View Post
Day type should be normal, no range extension. But profile is b shaped suggesting long liquidation.

regards.
rm

How can it be long liquidation when market has been going down for so long?

b type at end of a up move is a long liquidation. At bottom, it would mean something else.

Context is the key when you are looking at using day types to make analysis.

-- no1lives4ever
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