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Market Profile Volume

MTV

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Syed Asad Tirmazie
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109 views9 pages

Market Profile Volume

MTV

Uploaded by

Syed Asad Tirmazie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
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Market Profile: Volume & Market Development | EEE ESSENSE EES a Market Development is due to the result of Auction process between participants 2 Markets essentially move due to its perceived ‘Value’ by Traders 2 Markets constantly fluctuate between Balance and & Imbalance 2 Balance is where majority of participants agree upon the Value. Imbalance is where participants differ on Value Market Profile: Volume & Market Development o Balance is where Trader needs to get ready. Imbalance is where Trader reaps the Profits a Cycle of Balance — Imbalance — Balance takes place in 4 Stages © Accumulation (Neutral Days, Non Trend Days, Normal Days) © Trend (Trend Days, Normal Variation Days) © Distribution (Neutral Days, Normal Days, Non Trend Days) © Trend (Trend Days, Normal Variation Days) 2 Above Cycle is a guide. At times only 3 Stages occur Market Profile: Volume & Market Development Ta © Accumulation (News is terrible along with Economic Data) O Trend (Still disbelief, Price & Value continue higher) 5 Distribution (Belief and Confidence comes back, Volumes cannot cause same movement) & Trend (Confidence is at highest, Ol and Volume Peak out, Breadth of the Market weakens) Market Profile: Volume & Market Development a fSSSSSSSSSSSSSSSSSSSESISSSSGSEEGSSSUSSEESSISUGSEESSSSCESESSISEGSEESSSSNGSESSSSSIGSEESSSSNGSEESSCESOGEESSGES © Volume Areas are used to identify Market sentiment co Volume reference points help in identifying change in market before it shows up on structure co Volume Areas are also used as Support and Resistance 2 Type of Volume Areas; High Volume Area & Low Volume Area Market Profile: Volume & Market Development High Volume Areas 2 a © High Volume Area develops when market spends too much time at a range of price. a Price rotation during this range is high and both Buyer and Seller are active forming balance region co High Volume Areas are region of fair prices and hence attracts price towards it a When Price spends too much of time in a High Volume Area it tends to move away from it in search of new value Market Profile: Volume & Market Development High Volume Areas BR EEE EEE EEE EP © High Volume Area is not a rigid level for the market to follow. co When Trend is too strong Price will not return to (or near) High Volume Area © High Volume Areas provides enough time to liquidate or build position as price slows in this region co If Price moves above High Value Area and then comes and revisits, it usually is a good entry point if trend is to continue. (Support) Market Profile: Volume & Market Development High Volume Areas TREND a tay, rr ro Market Profile: Volume & Market Development Low Volume Areas SEES Se EE 3 Low Volume Area reflects directional conviction of OTF Traders 2 Low Volume Area forms during unbalanced market 3 Like High Volume Area this too can be used as Support/Resistance to place trades a Low Volume Areas are formed by Excesses, Single TPO’s & Gap ups along with fast price movements 0 It can be used as a “Trend change” Indicator as well since it represents Rejection Market Profile: Volume & Market Development Low Volume Areas Wh hk i ‘FAILS TO GO Ta _ TRENDS DOWN t hth a a | - | -

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