Volume Profile and Market Profile a new wave of market picture

[manish9300]

I am very new to all this. Just started using Amibroker. Will take some time to know all the nitty gritties. My first target is to start writing the trades and make a very valid journal. I have heard that all successful traders make detailed entries of their trades.

Try bar replay in ami.You can backtest through bar replay by eyeballing and writing down observations.Its just like in primary school days....Counting,Adding and calculating %.Excel is very fast though if one have got the data.

 

[Vipul_84]

VA values from 12 Sept 2016:
8784-66-48
Today's open below VA range at 8734.85
Today's IB:8755-26
Good chance of failed auction. Reversal expected? Let Xray bro or Manish bhai comment on this.

 

[manish9300]

My numbers are 81-63-45.A failed auction is developing so sustainable uptrend (over next 5 day) probability is lower.Also there is no target poor high/low or failed auction above.So keep trading to intraday only.One 30 min candle closed inside VA.If current candle also close inside VA,8781 is the 80% rule target.Responsive buying can be done near VAL.
I wanted to buy aggressively when i saw excess at day's low.....But when i noticed failed auction developing I curtailed my emotion.

 

[manish9300]

Xrayji,when we say 80% rule what stop point this probability is based on.Day's H/L or close outside VA?

 

[manish9300]

Manish bhai, can you explain how yesterday's low was poor low?

Yesterdays low was 27 and next lowest low was 32.7 (on 30min)....so difference is less than 6.Tpo size is 3.So that is less than 2 tpos at the extreme.This is how Poor h/l is defined.Poor h/l and excess depend on Tpo size.
Today lowest low 17.3 ,next lowest low is at 26.Difference is more than 2 tpos so that is an excess.Though it is not an excess after single prints or spike which is far stronger pattern.It is a quick way to catch patterns on candlestick chart.

 

[manish9300]

Lol.market rushing in last few min to hit 81.
edit : Missed by 1.2 points.

 

[XRAY27]

The 45 Degree Line Can Predict Late Day Rallies & Next Day Gaps

After mastering all the concepts discussed so far ,we can use this 45 degree line also

SOURCE

 

[XRAY27]

While using this MP concepts, just don't ignore the following two points

1.Don’t bet big on any trade.

2.Use money management, nothing is more important to survival.

 

[pakatil]

NF struggling to remain in VA range.....8739 - 8769........

 

[manish9300]

Four Steps of Market Activity (Developing VA or DVA)

STEP 1 Strong Vertical movement of price.It will generally takes place during the Initial Balance/IB period of the day.Market is in Imbalance.

STEP 2 Capping/Ending of step 1.It often occurs during the IB period as well.End of vertical movement and market starts to retrace and search for balance.

STEP 3 Movement is more in a horizontal direction than vertical direction and the bell curve/'D' shape begins to take shape as the market begins to ‘develop’.

STEP 4 When the bell curve is becoming fully developed and its VA/POC tries to drift towards the center of the IB, if it is not already in the center.Market tries to become balanced/efficient by filling the range created by step1.(occasionally steps 3 or 4 do not fully develop into 'D' profile and the market enters step 1 again, this is known as minus development).Minus development is very helpful in showing the direction of the market.
source : Capital Flows.pdf