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Market Profile Exploring the Auction Theory

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Old 02-07-2009, 07:57 AM
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bottle Distribution Day Types

1) Normal Day
  • They are more the exception than the rule
  • They are generally created by swift early entry of the other timeframe participant, which has the effect of establishing a wide initial balance
  • 85% or more of the range is formed in the initial balance area
  • Short term trader sets the parameters and is in control
  • Usually triggered by news announcements / events



2) Normal Variation Day
  • Triggered by the longer term trader who is more active and extends the range after the Initial Balance Area has been established
  • Range Extension is roughly double the Initial Balance Area as control is divided b/w short term and long term traders
  • Wider the range extension, greater the influence of the longer term trader

(Double Distribution Days included)



3) Trend Day
  • The other time frame trader is in control right from the start of the day, such unidirectional activity is called one time frame market ,
  • Trend days, seldom occur, following an opening that takes place in the center of the previous days value.
  • A trend day's profile is generally thinner and elongated than NV day ,usually no more than four or five TPO's wide at any point
  • Range Extension is approximately double the Initial Balance Area
  • Market moves in one direction and closes on the extreme
  • Longer term trader is in control and price is searching for value



4) Neutral Day
  • There is range extension but no net influence from the longer term trader
  • It suggests that the both time frame buyer and seller are present
  • On a neutral day the base is wide which is somewhere between a trend and a normal day, its not so small to be easily upset and not wide enough to hold the day's extreme
  • There is range extension in both directions

Attached Images
File Type: jpg ND.jpg (5.1 KB, 753 views)
File Type: jpg NV.jpg (7.1 KB, 749 views)
File Type: jpg TD.jpg (3.2 KB, 758 views)
File Type: jpg NU.jpg (1.9 KB, 837 views)
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Old 02-07-2009, 08:04 AM
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Opening is imp as it says.

" Trend days, seldom occur, following an opening that takes place in the center of the previous days value. "
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Old 02-07-2009, 10:57 AM
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Old 02-07-2009, 12:20 PM
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Old 02-07-2009, 12:29 PM
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J- Sir, clean bold kar denge..
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Old 04-07-2009, 08:35 PM
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Would this be the right decreasing order of base length?

Normal > Normal Variation > Neutral > Trend

(or maybe Neutral & NV should switch positions)

Would the order be the same w.r.t. IB?
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Last edited by kkseal; 04-07-2009 at 08:43 PM.
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Old 04-07-2009, 08:38 PM
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Neutral seems to be the most treacherous of the lot due to the RE in both directions & the sudden directional switch Any more cues on this particular type.
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Old 04-07-2009, 09:06 PM
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Quote:
here's mp in a nutshell,the shape of the pattern is called a boob,the widest point on the boob is the nipple,if you make 2 boobs in one day the shallow part in the middle is the cleavage. The market uses the several previous days nipples and cleavages as support or resistance, the cleavage is similar to a gap and is often retraced to fill. When you have a nipple set up on your chart,you go with the move away from it,for instance,1291 hi,1270 lo,nip at 1280,you go with the moves away from 1280.if the 1290 was 4 ,1/2 hour letters ,say,cdef,(thats a ledge) and only one print at 1290,that ledge will not be there by the end of the day,the ledge represents a large seller and he will eventually be gone. If you hand chart it you can learn it on your own,if you use a program it will take a long time and you won't learn as much. Handcharting it ,your hand will eventually know where the market is going. If at the end of the day your boob is shaped like the small letter p,as is todays bond chart,the market has a strong chance of rallying tommorrrow. If at the end of the day it looks like the small letter b,strong chance of selling off tommorrow. Everyone spots different setups in it ,but if you see a few and they consistently react as you suspected,you,ve found the reason people like MP

http://www.elitetrader.com/vb/showth...69#post2051069
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Old 04-07-2009, 09:22 PM
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Old 04-07-2009, 09:28 PM
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... if the 1290 was 4 ,1/2 hour letters ,say,cdef,(thats a ledge) and only one print at 1290 ...

Think should read

if the 1291 was 4 ,1/2 hour letters ,say,cdef,(thats a ledge) and only one print at 1290
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