MARKET PROFILE

In Technical Analysis maximum stress will be on price and least is on volume and time , where as market profile
deals with Price and Time with least weight on

volume and in case of volume profile time is given least weight,which we will see later ,so core components of
trading are PRICE ,VOLUME AND TIME

Market profile chart it is represented with distribution of time and price and volume in bell shape curve to
reveal value and pattern

At start we will see some of the components of market profile

1.Value Area

2.Point Of Control

3.Initial Range

4.Initial Balance

5.Range expansion

5.Poor high and Poor low

6.Excess

1. Value area - price range in which approximately 70% of the market volume took place. and upper high
of value area is called value area high and lower is called value area low

2. Point of control:It is the price where most of the trade for the day happens, which we generally
denote that in short words (POC)

3. Initial Range :First 10 min range of the day

4. Initial Balance: First hour trade activity which we denote with IB

5. Range expansion:Range expansion or extension is price action move beyond IB

5. Poor high and Poor low: A market reaction forming a high which is against trend then fizzling out
same with poor low a market reaction forming low but it will be covered in market due course

6. Excess:when low and high are formed with strong pull back with in short time it is called excess.

Hope this one line definitions are clear ,if you want more details please refer
Main factor which separates market profile from other classical TA is the time factor and MP charts are
usually constructed on TIME AND PRICE,Lets see what is price and time with relation to market ,

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 When market opens @ 9.15, with in first 30 mins we see and move there after a pause and at last a
surge or plunge at flag end of the day (or)
We have a second scenario where market moves in the opening section and whole day it remains in
that range…

This time factor is main for short term players (intraday) and not much important for longer time frame
traders (now on words Other time frame traders(OTF) - swing and positional traders) why ?? since there
position is more depended on price where as day traders are dependent on both TIME as well as PRICE

As this time factor advantage is there for large player they are the deciding factor and day traders has
to follow them for gains

Market profile terminology calls this time and price as TPO (TIME PRICE OPPORTUNITY)

TPO – TPO or Time Price Opportunity is the basic building block of Market Profile. Each and every
letter in the chart represents a TPO. Which in turn represents a point of time where the market touches
a price. Each consecutive letter denotes a 30min period of Market Activity. In our example as shown
below the letter ‘A’ represents how the price traded for the first 30min. Letter ‘B’ represents next 30min
of activity. And Letter ‘C’ and ‘D’ represents subsequent market activity details and so on.

Developing Point of Control(DPOC): It is the Point Of Control which is forming for the current day of trading i.e
POC forming in the current section of 5th AUG is DPOC and 4th Aug is POC

Below is the Small setup for Intraday trading based on DP concept of POC

Step 1 : Note down the POC of Previous day (in 30min HTF)

Step 2 : Note down the High and Low of Previous day

Step 3 :Mark them on the current chart as DP (Decision points) and trade them with simple price action

Just posting the image of simple setup discussed in post #25

4th Aug NF FUT basing on POC,PDH,PDL of 3rd Aug
Morning candle Opened between the previous day high and low and pierced the POC basing on this
conclusion:
PDL and PDH will act as support and resistance and POC can be used as trade anchor for the day

Hope i have made members understand the basic concepts ,please do post your queries if any..

i'm not good in teaching just presenting my understanding in best possible way

Market profile is a market's price activity recorded in relation to time in a statistical bell curve and TPO's
are opportunity created by the market at a certain price at a certain time

Number at the edge of the Profile chart 33 and 50 represent TPO count !!!

TPO count of 33/50 means 33 above the POC and 50 below the POC. This indicates buyer dominance or
buying control. The TPO count above the POC represents sellers willing to short above value while a TPO
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count below the POC represents buyers willing to buy below value. Buyers below POC view the markets
as undervalued while sellers above the POC view the markets as overvalued.

Poor High and Poor low :In a bull trend with HL and HH ,we often we find people who short the market or exit
there position seeing market is over valued or indicators overbought so they start a swift move of selling ..there
after market takes a breath and recovers from lows but time taken to recover is some what longer and that high
is called Poor high ...reverse of this is called Poor low

Context-wise two days having the same high or same low is also treated as poor high/poor low and such zone
requires repair. In classical technical analysis we call such pattern as double bottom or double tops and such
zones are meant to be revisited which in classical technical analysis we call such zones as support/resistance
zones

Excess :Many times we seen sudden gap gown and gap ups , there after swift recover happens with in no
time,Generally Excess is seen in the extremes of the profile with strong pullback as shown below. Excess occurs
across various timeframes (Hourly, Daily, Weekly Charts)
Tomorrow i will post some charts on this(Poor high and low and excess )

POOR HIGH/LOW and EXCESS

Just showing a candlestick pattern to explain in details PoorHigh/Low and excess..

Let us discuss to candle stick patterns which you all know hammer/hanging man except on basics of close there
is nothing special for us in classical TA ,but profile user sees this on basics of time

Bullish hammer (with respect to the recovering from LOW) if it is done is swift manner within very short time
then it is Excess and profile users give more importance to this one.On basics of time POOR HIGH/LOW AND
EXCESS are very vital for profile traders

If that hammer is formed near any support with in uptrend which almost makes it double bottom or a revisting
area (demand) and time taken to recover is much longer then it is called “POOR LOW”

If that hanging man is formed near any resistance in downtrend( rally in downtrend) which is also a revisting
resistance and time taken to crack form that high longer then it is “POOR HIGH”

In uptrend we will have poor low’s i.e; market moves away from trend and resuming previous trend after
spending some time in opposite direction (poor low ) if the time spent is very less then it is excess low

Below chart of Nifty Spot and demand and supply zones marked

Just classify date marked into Poor high/low and excess and post charts watching intra day charts ..on basics of

this I can move further

Note:Manual drawn lines not from any AFL

In profile Language

Poor High – When exactly 2 TPO’s exist at the high for the day. A poor high will generally lead to higher prices
unless it occurs against resistance. This is referred to as a double top in most trading circles but a poor high
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should generally never be shorted as it indicates acceptance at the market high.

Poor Low – When exactly 2 TPO’s exist at the low for the day. A poor low will generally lead to lower prices
unless it occurs against support. This is referred to as a double bottom in most trading circles but a poor low
should generally never be bought as it indicates acceptance at the market low

Example 24th june time taken to fall is 14 candles but recover for morning high is 7 to 8 candles.so it is Poor
Low ..because we are in uptrend in long term chart and recovery is swift but nifty spent quite a bit at lower
levels so this comes under Poor Low and not excess.

Take remaining and post your views

Few more important terms of reference to be used...

Initiative Buying – Buying above the value area. Initiative buying would imply that you expect the current
uptrend to continue as you are willing to buy at a higher price than you could have bought during the previous
day. With initiative buying you are looking to capitalize on a fast moving market that is making new highs.

Initiative Selling – Selling below the value area. Initiative selling would imply that you expect the current
downtrend to continue as you are willing to sell at a lower price than you could have sold during the previous
day. With initiative selling you are looking to capitalize on a fast moving market that is making new lows.

Responsive Buying – Buying below the value area. Responsive buying would imply that you expect the market
to return to the mean (the center). Buying responsively in an uptrend is a strong play.

Responsive Selling – Selling above the value area. Responsive selling would imply that you expect the market
to return to the mean (the center) Selling responsively in a downtrend is a strong play.

Initiative Buying/selling is almost Break out version of classical TA

Responsive activity is something which comes at important support or resistance. For example: Previous day
high/low, morning range high/low, congestion zone high or low criteria

With respect to VA we will have 5 scenarios as mentioned below

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Rotation Factor (RF) – A calculation that shows the strength of the current market trend. It is calculated by
assigning a value from -2 to +2 to each TPO. A value of -1 is assigned to the low of the current TPO if its low is
lower than the low of the previous TPO, a value of 0 is assigned to the low of the current TPO if its low is the
same as the low of the previous TPO, and a value of +1 is assigned to the low of the current TPO if its low is
higher than the low of the previous TPO. The same applies to the highs. A value of -1 is assigned to the high of
the current TPO if its high is lower than the high of the previous TPO, a value of 0 is assigned to the high of the
current TPO if its high is the same as the high of the previous TPO, and a value of +1 is assigned to the high of
the current TPO if its high is higher than the high of the previous TPO. All of the values are then added together
to get the rotation factor for the current day.

80 % rule

if market opens above VA or below VA and coming into VA and remaining there for 1 hour i,e., 2 consecutive
candles of 30 min then there is 80 % probability that it (va) will be filled

However if price opens above/below previous days value area and haven’t return back then it is a sign of one
sided directional move

XRAY bro, POC and VA keep changing through the day, so how do we handle this?

Wisp bhai !!!

Use yesterday va and poc for todays trade with weekly prospective,current (today )is a developing section for
future,hence it is called developing POC i think i have explained that in previous post/s!!!

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Naked POC: It is a POC from a previous days that price has not returned to on any of the following days.

Since POC is point were price has retured max times ,it will act as magnet and any untouched POC
(Naked/virgin) will pull the price to that level

How to Prepare a basic report with MP !!!

First one will be weekly

This are values for entire week ,(this is my way )

Values :VAH: 8745 POC 8679 VAL 8610

Basing on this if NF don’t close above 8745 then it will move towards 8679 if not returned from this then it can
move towards 8610 levels for this week

Today action:

Today nifty rested above 8745 and retured towards lower areas forming Poor High there and touched 8679
Today MP values for tomorrow trading in Daily

VAH :8721 POC :8697 VAL :8673

With respective to daily if NF not crossed 8721 With in IB then 8697 and 8673 , 8610 but if moved
Above 8745 then NF will resume its upwards trend Upon on this I will plan my intraday for tomorrow
For all this study use 30min charts mp daily for intraday, weekly( for broader out look for entire week)

Vipul_84 said:
XRAY, does it mean that when we start every morning, we should be clear with yesterday's analysis with following things:

All for yesterday : POC, VAH, VAL, DH, DL, type of day and ongoing trend

Once at 9.15 when market opens, we get open value and based on open value and first hour of trade, we define day as one of the
five?

yes is the answer !!!

Anyways start from first post and learn the terminology first and then go through previous post and make a
report for next plan of action !!!
Post #71 and 79

Bottom line :We are Just adding TIME COMPONENT to our existing system

Yes reading all the posts as suggested.

My one query is how many types of days we can have in MP? I guess 4 days : Balanced day which is tight day with perfect bell shape
distribution, "P" type imbalanced day, "b" type imbalanced day & "B" type double distribution day.

So can these 4 types summarise MP day type for any given day? Or is there any different type of classification?

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Just go through Post No :58 read the entire link i have shared all that... P is shorting covering rally b is Long
liquidation and B is nothing but two way action !! these are just ways of describing last day action ..what can we
do with that for todays trading !!! profiler use this to recognize the way of balance and imbalance and
distributions ..
...only factors we can use and trade are Va's POC and NPOC as DP!!!

NPOC :Naked Point Of Control

I think some confusion is there in understanding NPOC & as requested by members i’m once again explaining
this concept in details

Naked POC: a POC from previous days trading range that price has not returned to on any following days.
So in any given day if market was traded above or below the POC with out touching it …then for next day it will
be a naked POC …

If we see daily profile in 30 mins we get poc of daily and if that was not touched it will be come daily NPOC and
Weekly NPOC and as per MP theory they act like magnets and price drifts to there location

Just see Day 1 DPOC of will be next day POC on that day 2 market action never touched POC 1 so that makes it
Naked POC ,

in same way day 2 POC was not touched on day 3 and day 4 poc was untouched on Day 5 these NPOC's acts as
magnets and price pulls to then as per profiler language

amit2007gunjan said:
Thanks for sharing your valuable insights on MP. I am in learning phase of it .I was going through your posts and had some queries -

Balanced days have wide base i.e. initial balance. How much wide (ticks) you look for to determine it as balanced day?

On balanced day how do you decide the overall bias? I mean whether to sell at high or buy at low ? Is it according to preceding
trend (trend of last N days) ?

Thanks for following this thread Amit gunjan !!!!

if first 1 hour of trade in case we are just in the previous day VA range then (open and closed with in that range)
we can presume that day 80% chances are
there which will end up as non trending day profiler term balanced ...go through entire thread you will
understand every part of it...

XRAY27 said:
Thanks for following this thread Amit gunjan !!!!

if first 1 hour of trade in case we are just in the previous day VA range then (open and closed with in that range) we can presume
that day 80% chances are

there which will end up as non trending day profiler term balanced ...go through entire thread you will understand every part of it...

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Thanks. It was my misunderstanding.Wide initial balance is normally a characteristic of a "Normal Day" where
the IB is not upset throughout the day.

And today's profile of Nifty future looks like Neutral Day ! Am i correct sir?

Vipul_84 said:
So generally if market opens in range, should we simply wait for first one hour? If it stays in range like today, its tight day and look
for range day techniques.
If market opens in range and moves one way( as it did on 10th that is yesterday, then simply look for pull back in the direction of
ongoing trend.
Right?

First of all weekly Profile is important ..then daily 10 th was a day which was already in down move for a target
of 8610 and 8595 levels ,yesterday failed at PDVAH which is perfect area to short !!!

But today after reaching all targets in weekly we have to go by previous day va 's and dp so there we have to
wait for 1st hour as it opened in range and 2 nd 30 mins was also closed in range...

Bottom line :Higher time frame rules...so we are just riding higher time frame profiles if not available then
previous day is the only option !!
Hope this clears your doubt !!

Aug 11, 2016

#140
Vipul_84 said:

Ha bhai, PRO or upcoming ka farak hai, at least EOD to samaz me aya

I'm also learner my dear not a PRO !!!

Vipul_84 said:
So generally if market opens in range, should we simply wait for first one hour? If it stays in range like today, its tight day and look
for range day techniques.
If market opens in range and moves one way( as it did on 10th that is yesterday, then simply look for pull back in the direction of
ongoing trend.
Right?

First of all weekly Profile is important ..then daily 10 th was a day which was already in down move for a target
of 8610 and 8595 levels ,yesterday failed at PDVAH which is perfect area to short !!!
But today after reaching all targets in weekly we have to go by previous day va 's and dp so there we have to
wait for 1st hour as it opened in range and 2 nd 30 mins was also closed in range...

Bottom line :Higher time frame rules...so we are just riding higher time frame profiles if not available then
previous day is the only option !!

Hope this clears your doubt !!

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How many days of back POC should we track? I mean weekly NPOC ( in case if it is not revisited) is one and
then should we consider last 5 trading days NPOC as magnets or DPs ? Just to give a stupid example, 2009 post
election rally never filled NIFTY GAP or those POCs are NPOCs anyways, but now it may not be very relevant.
XRAY27 said:
Good going vipul bhai... perfect !!! :thumb:

you asked in the morning and i replied then itself !!!

http://www.traderji.com/advanced-tr...e-new-wave-market-picture-12.html#post1171834

XRAY27 said:
NPOC :Naked Point Of Control

I think some confusion is there in understanding NPOC & as requested by members i’m once again explaining this concept in details

Naked POC: a POC from previous days trading range that price has not returned to on any following days.
So in any given day if market was traded above or below the POC with out touching it …then for next day it will be a naked POC …

If we see daily profile in 30 mins we get poc of daily and if that was not touched it will be come daily NPOC and Weekly NPOC and
as per MP theory they act like magnets and price drifts to there location

Just see Day 1 DPOC of will be next day POC on that day 2 market action never touched POC 1 so that makes it Naked POC ,

in same way day 2 POC was not touched on day 3 and day 4 poc was untouched on Day 5 these NPOC's acts as magnets and price
pulls to then as per profiler language

if you are studying a week just wait for a week in case of month then a month !!!

The market profile is constructed on Basis of "TIME" which is vital for intraday player and also for 2 to 4 days
swing traders ,but for positional trader it is not much of use as "TIME" limitation is not a major factor to them.

Just studying price and getting exposed to over night risk basing only on that is not a good idea so we study
volume why ?? to locate areas of big volume players so that exposer risk can be reduced

One concept of Market Profile which is i use most is differentiating ,balanced market, and one that is
imbalanced. Balance simply means an equal amount of buyers and sellers around a particular price area. That
also means what? A range-bound market. I also learned that the more time price spends at a particular level,
the more significant that level is. Usually you will find the “point of control” or price level where the most time
was spent. When price moves away from this area, and happens to revisit it, this area becomes a very important
potential turning point. So I can adjust my expectations appropriately and better anticipate the market.

The market profile is constructed on Basis of "TIME" which is vital for intraday player and also for 2 to 4 days
swing traders ,but for positional trader it is not much of use as "TIME" limitation is not a major factor to them.

Just studying price and getting exposed to over night risk basing only on that is not a good idea so we study
volume why ?? to locate areas of big volume players so that exposer risk can be reduced

---------------------------------------------------------------------What is volume profile---------------------------------

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--------------------------------------------

A Volume Profile is similar to a Market Profile in as much as they both show a profile (a bell curve) against the
Y-axis of the chart to represent the most traded area(s) of the time period that they have been constructed
against.

The major difference, a significant one, is that a Volume Profile is constructed using the volume traded at each
price while Market Profile is constructed based on time brackets traded that the market traded at each price
called TPOs.

Volume Point of Control

The most traded price (the one with most volume) is defined as VPOC, or Volume Point of Control.And High
volume node and Low volume node are more important in this

Limitations of MP/VP

1. The primary condition for a valid profile is a normal, equilibrium distribution. If the market is not in
equilibrium there is no valid POC
2.Even in overall equilibrium markets there can be days in which the market prices jump out of bounds
(false breakouts)
3.(MP) The time which is spent on individual prices does not necessary imply that the same amount of
volume took place there
4.VP-Which is based purely on volume and price and does not take time into account at all.

Other patterns of VA's of MP

6 candle count

whenever there is a range extention on a day where pVA is overlapping we will count six 5min candles (i.e. one
TPO) before placing a trade in the direction of that range extension.
Spike:

Last closing hour rally in the market is called a spike and we can see that time from 2.30 for nse..
Opening of tomorrow basing on this spike of previous day is above VA without any over lap of Pva's it can be
seen as continuation.
if we found it overlaps or with in va then it will be failure breakout in majority cases

Half back reference

Half back reference is nothing but {{Previous day High + Previous day low}/2} mid point of previous day..as per
profiler language if stop loss what ever may be your system is at mid point of this reference then it will be eaten

out soon

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hi Xray,

Just some query related to TPO. Regarding present scenario. From naked eye as per this chart. (4 hour niftychart) last few weeks
https://www.tradingview.com/x/uqULdol5

We spent one full day 8 aug comfortably above 8700. 8700- 8750. No desperate selling. Below 8600 there ve been lot of jumps.
Appears as if someone desperately buying below 8600 in past few days. Not opened and closed below 8600(1 full day). But again its
coming back there

So just would like a comparison of time spent below 8600 and time spent above 8700.

In present context does it mean we would most likely spent sometime at 8500-8600 or below 8500 sometime get some more buyers
to go back towards 8750
and break again.

Or it means people gonna keep buying and at sometime its gonna smoothly go above 8750.

Hi lemondew !!!

Monthly reference area's are VAH@ 8652 POC @ 8520 VAL @ 8388...

so first it has to move past 8652 it has done in the starting week of this month ,but failed the weekly profile of
last week and reached its target ,this week is
overlap profile and its down its target today itself..We don't know how much time it will spend in this lower
levels ,but we can eat the side it moves
8745 is the weekly reference point which should be taken out for extended bull trend as this will out of the
overlap area

How do you use the rotation factor?

It is trend strength indicator and histogram of green shows the bull power and red bear and no histogram show
neutral ( range market)...
Just use it like divergence study, which helps us to know the weakness of trends

Timeframe change imparts some change in values...so we see 30 min timeframe as mentioned in the thread. The difference will be a
few points only.

ST

the change in values of value area changes with change in T/F due to inefficiencies of our charting platform. if 1
min base is selected, the calculation shall be based on 375 bars (C or mid value of that bar depending upon the
afl/code). the bigger the T/F the more distorted values of VAs are obtained. My 2 cents on this observation.

For making trading decesion do we need to see yesterdays Pattern and respond accordingly or we trade as per today's distribution?

I m still under confusion for entries using this b ,P and B distribution ,Please advise .

AD !!!
These patterns are for future trades only because any method of trading is based on past action and we expect
it to repeat in fut if same condition happens...gone through many publications of MP and understood these
points only..Trades will be on va's and not on developing Va's

Just updated what i know and understood

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Principles of trading !!!

1. Price is always a function of Supply & Demand - Regardless of the market.

2. Changes in Supply and/or Demand effect changes in Price.
3. Changes in Order Flow precede changes in Price.

" Smart Money" when they trade in an electronic market, their transactions get recorded in real-time. Thus, they
leave a footprint that can be analyzed,this analysis is also called "DOM" study ..Depth of the market (DOM)

This part is already dealt by one of our member MT4trader in his thread..go through that ---------- OFA

Vipul_84 said:
Yes reading all the posts as suggested.
My one query is how many types of days we can have in MP? I guess 4 days : Balanced day which is tight day with perfect bell shape
distribution, "P" type imbalanced day, "b" type imbalanced day & "B" type double distribution day.

So can these 4 types summarise MP day type for any given day? Or is there any different type of classification?

Just go through Post No :58 read the entire link i have shared all that... P is shorting covering rally b is Long
liquidation and B is nothing but two way action !! these are just ways of describing last day action ..what can we
do with that for todays trading !!! profiler use this to recognize the way of balance and imbalance and
distributions ..
...only factors we can use and trade are Va's POC and NPOC as DP!!!

Author of both the codes post by you and me are same kaka (& Co).

Code posted by me is older version around 2013, which does not have A,B,C,D.. concepts, he later added A B C concepts which wont

work in lower version.

yes !!! that was modified by rajendran !!! added A B C !!! and reduced the tick size may be !!

On Amibroker

Major Disadvantages: TPO Lettering works only in the 30min charts. In the 5/15min charts letters repeat horizontally. It is
recommended to use only 30min timeframe if you are using a Daily Profile Charts. You have to vary the TPO Density (Default value =
3) to get the proper Alphabet alignment. And the TPO size varies from stock to stock. One has to manually set the TPO Density
(mostly depends upon stock price and intraday price movement). However lower TPO density values are preferable to get close to
accurate values.

Extensive zoom out will collapse the charts and scroll back will work only to certain extent. It is recommended to use bar replay
feature in amibroker to simulate the past historical profile charts.

POC, VAH, VAL levels calculation methodologies are still with some flaws but the values are very close to the actual on most of the
days. Suits for beginners who want to learn market profile at a minimal cost. But definitely not for professional traders.

Daily NPOC , is it manually drawn or by AFL ?

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Amit !! it is "POC" which is untouched at that in the above case it is weekly also... we have to check in that
manual untouched "POC".. i don't found proper AFL for that NPOC...
if found in daily then its NPOC ,if we wound that in weekly then it is weekly NPOC... as i said these acts as
magnets and price often comes there !!!!

The most useful characteristic of Market Profile is how it paints the picture of acceptance and rejection of price
over time.
Just Morning opening and IB told it will be a balance day ( non trending) holding that 80 % rule,done two
trades one ended in minor loss and another was good one !!! red and green lines are VAL and VAH blue is POC

Just remember three points which are universal for any method

1. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
2. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to
sideways action.
3. Don't create so many rules that you are confused,many traders ended there career with this

The initial balance is 2 consecutive 30 min candles so, its is always better to trade with that concept only ..

if we down grade the time frame to lower levels ..how can we apply 80 % rule !! if opening is in VA area !!!

But people just go with AFL and do buy sell above and below VA's...thats not the concept !!! Learn whole
subject then apply it !!!

Va 80 % rule is such that break out of it should have some 80 % success rate (IMO), so down grading time
frame should also obey this for better trades with in the true sense of MP my 2 cents

Yesterday Double distribution so any BO should be above yesterday high with cap to weekly level of 8745

Once BOF is noted...shorted to Half back refer as tsl then moved to above POC..

Same thing applies for P and b distributions !!! first is bullish and later is bearish

Typo in chart just read it as half back refer point

Basing on the opening and first TPO period clue can be obtained for the day

GAP in market profile

Market Profile theory suggests that there are essentially 2 types of traders that make up the market. Day time
traders; these are opportunistic traders looking to make daily profits are not concerned about larger trends.
And ‘Other Time Frame’(OTF) traders; those who trade for any period longer that a single day. We like to refer
to these as institutions… the bigger money
Now we must evaluate a gap in the context of market profile, and ask the question ” was this gap caused by
day traders (small money) or the institutions (big money). The answer to that question will tell us whether the
gap is an imbalance gap or a professional gap.

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A professional gap as the term implies was created by professional traders or institutions. The imbalance gap…
well you guessed it by the smaller day traders. Imbalance gaps tend to reverse and fill within the 1st 30-60
minutes of trading

Professional gap is entirely different story. The rule here becomes don’t trade against the big money. If the
institutions were responsible for creating this so called professional gap then we must respect the impact they
have in the market, and trade with and not against them. That means to take trade in the direction of the gap.
Go long if we gapped up, and go short if we gapped down

The final part in this equation is how to tell the difference between a professional and an imbalance gap. To do
this you must be a student of Market Profile Theory and understand the difference between markets that are
building versus losing value.

1. First go with weekly profile with due care to profile patterns

2. If target reached(weekly) then carry with daily profile patterns

3. In case of GAP identify that Gap type :imbalance or professional,how ?? do your self as per Dalton

hint...

4. Increase the knowledge of profile language before running after AFL/s or softwares...

5. It is not buy above and sell below type

VA's and Developing VA's

Va's are used by Day traders /OTF traders /VPA traders

Developing VA's are OFA traders domain with scalping as a base..

Opening Type

1) Open-Drive: Is the highest confidence opening which is generally caused by OTF participants who have
made their trade decisions before the opening bell. The market opens and aggressively auctions in one
direction. Price does not return back through the opening range and leaves the most reliable extreme.

2) Open-Test-Drive: Is the next highest confidence opening which generally opens and tests beyond a
known reference to make sure there is no new business to be done in that direction. The market then
reverses and auctions aggressively back through the open. This opening type leaves the second most
reliable extreme.

3) Open-Rejection-Reverse: Is characterized by a market that opens, trades in one direction, and then
meets opposite activity strong enough to reverse price and return it back through the opening range.
Lower confidence opening where initial extremes only hold about half the time.

4) Open-Auction (Inside Value/Range): Market opens, auctions in one direction until activity slows, then
14 | P a g e COMPILED BY VENU
 auctions in the other direction. Neither, the OTF buyer or OTF seller is present with any level of confidence.
Any extremes established early on, have a low probability of holding for the entire day.

5) Open-Auction (Outside Value/Range): Opens outside Value/Range and auctions around open. Higher
odds of directional conviction developing because of open outside Value/Range.

I think there is some confusion in between Market Profile and Volume Profile among readers of this thread
,Market profile gives more importance to time and price and less stress on volume,where as in Volume Profile,
Price and Volume are more important and it ignores time.

XRAY bro, What does a triple distribution day tell us? Was nifty in triple dist today?

It's a small "b"

b Shape Profile -occurs during bullish upward moves and develops into a shape similar to the letter b. The top half of the profile is
long and thin, typically single prints representing low volume rejection. The lower half of the profile has a more wider distribution.
This formation is typical of long liquidations signalling a pause as opposed to bearish sentiments caused by the entrance of Initiative
Sellers reversing the market direction.

Does that mean price would head north? I don't know. (I doubt it)
Today morning,
Weekly pivot, daily support 1, virgin POC (17th Aug), previous day low, WVAL all are around 8640-55 range.
Afternoon bounce didn't break that range. So that will act as resistance tomorrow.

vivektrader said:
Xray bhai are you trading stocks too based on market profile?

Yes !!! Volume Profile is best for stocks/index- positional and Market profile is only for day trading can be used
for target booking of swing trades
Just take the above as example for Value addition and fading of Value..D and S with VP is excellent set up to
trade and above is example of Volume profile not market profile
ST Sir,

Please correct my understanding , the short was at touch and rejection the Weekly VAL as shown in the sketch.

Amit !!!
First note down weekly bias along with distribution pattern after that come to daily and trade !!!

So if you note TPO for buys are more at lower level in weekly, what does this means responsive buying ,at every
lower level demand is created ,so time to run upside move is more swift then down fall
as you know i trade options in last week !!! dancing with calls !! just updating after clearing my position !!! sorry
for delay in reply

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why there are no TPO number/s in your chart !!!

TRAP or FAILED AUCTION

Every body know the concept of Bull trap and Bear trap any ways just below is the image of that which we use
mostly in price action trading
In the same way there is concept called failed auction in market profile ,Ray Barros has brought back this into
play for trading ,
only difference between price action and MP is ,with MP we can estimate the period in which this Failure
pattern can occur ,
which they term them as failed auction

Failed Auction is often a successful trading pattern in market profile. It occurs when the Initial Balance (first
60min high – low) is taken out and later within
30mins, price pullback happens followed by the price action towards the other side of the Initial Balance as
shown below. Failure to hold the Initial Balance(IB)
break zone for more than 30min is said to be failed auction. next days initial price reaction is likely in the
opposite direction of the failed auction zone and

later Failed auction Zone is expected to be revisited within 5 days (as per Ray Barros).

Thus provides tremendous trading opportunity for traders to play this pattern towards the failed auction
zone.Failed Auction is the important setup for dealing Developing trading day as we can trade with Just IB

!!with in 5 days these levels will be visited which offer good point to swing as well
Let us trade with the concepts covered so far !!!

FLOW CHART BEFORE TRADING BY MP:

1. ROTATIONAL FACTOR ANALYSIS BOTH DAILY AND 30 MINS

2. MAKING WEEKLY REPORT AND IF DISTANCE IS THERE WITH RESPECT TO VA'S IN WEEKLY SWING TRADE
WILL BE MORE PROFITABLE, OTHERWISE ONLY STICK TO INTRADAY

3. DAILY/WEEKLY NPOC/VPOC ARE VITAL FOR TARGET BOOKING

4. PREVIOUS DAYS VA'S WILL BE USED TO TRADE CURRENT DAY AS DP

5. FAILED AUCTION IS ONLY METHOD FOR TRADING DEVELOPING AREA (i e., PRESENT DAY TRADING) THESE
WILL BE ALSO USED FOR SWING

Rotational factor study

Always study vol and RF at each swing point so that we can have potential entry signals at given time of study

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Since i trade EOD along with 30 min VA...i don't study 30 min chart with RF..as this will amount too many
arguments to trade !! others can experiment it

Another Failed Auction setup : - Market opens gap up above previous day value area and as if looks like
Open drive ,but fails by breaking low of first 30 mins candle and it will start a move towards downside to test
value area's !!!!

Final steps of whole theory of MP in 3 bullets !!!

1. Define Previous day va's with weekly va's if major distance i trade swing trading or will remain as day trader.

2. Depending on open with gap out side va's failed auction is a possibility or open drive which only depends on
first 30 min candle

3. If open is between va's then i will apply 80 % rule !!! offcourse look for distribution patterns of " p" ,"b" "B"

Xray bro, you said you look only for three things that is previous day& week VA range, today's opening with
respect to yesterday's VA range (if outside: two possibilities : failed auction or open drive) and third is opening
inside range where we look for 80% rule.
That means current day's developing MP patterns has not much use for us because these current day's
developing MP pattern can change considerabaly by EoD. So we use all MP details of yesterday. Is this right?

Yes !!! Vipul bhai !!!

Thanks Xray bro. One range doubt I had was this. What we see all the time is that yesterday's High is always greater than VAH and
low is less than VAL. That means always the yesterday's VA range is inside that day's range (Hihg - Low). Now if today's open
happens beyond yesterday's VA range (say above VAH) but inside previous day's range (below yesterday's high), that means if the
open is between VAH & YD High (or vice versa below VAL but above YD Low), in these cases are there any different considerations?
Do we consider yesterday's day range (High-Low) at all or we are just bothered about the VA range?

i'm not watching any High and Low of yesterday !!! just VA's are fine for me

I have read the whole thread last weekend and taken notes.More rereading are necessary.Is it right to say that failed auction is
modified by you as it doesnt seem to depend on IB range(but on open , previous day VA and first 30 min close).According to
marketcalls website failed auction is IB breakout and breakout not sustaining for 30min and then break of the opposite extreme of
IB.Setup presented by you is more like gap rules of pivot trading with high low replaced by vah val and instead of 5min using 30 min
time bracket for trade tigger.
so pattern definition as per what i understand is given below.Please do correct if there is any mistake in understanding.

1.Failed auction.
Open outside VA,First 30min close outside VA,Break of first 30 min bar towards VA.

2.Open drive.
Open outside VA,First 30min close outside VA,Break of first 30 min bar away from VA.

3.80% rule
Open inside VA,First 2 30min close inside VA,Filling of all of VA range is expected.

First of all market calls website just copied some extracts ,go through Dalton stuff in full and IB role is only for 80 % rule in case of
open with in the va's...failed auction should be read along with open type then you can draw the conclusion !!! nothing is modified !!!
it is just my understanding !!!

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Dear xray Bro,
So your intraday trades starts only after complete of two 30 bars ?or any exception. ..
Also please give more about swing trades using this method. ..

Vijay bro !!!

i have carried live swing trade in starting post !!! check that !!! any ways i'm just giving brief
nutshells once again

1. "Failed auction" ,then only first 30 mins,particularly if gap up/down above/below va or

this gap can open drive case like today, it is the best example.
2. If open with in Va then 80 % rule , then i will consider IB
3. Weekly va's are targets for swing
4. Previous failed auction area can be touched with in next 5 days..so if touches that area
then i will book profit in swing trade and if it had not reached that price with in 5 days with
out hitting my SL, then i will cut my position !!
5.i use rotational factors for positional trades which are based on EOD for index ,example is
there in starting post !!!

Failed auction with in NSE timing prospective..

If prices move higher then we say that buyers are in control and if they go down then sellers appear to be
controlling. In Market Profile "Open" is life and blood, this is what i understood upon this usage of IB ,80 % rule,
Open drive etc comes into play

Most of the times, the first 60 minutes appear to be the time when the market is establishing value for the day
and is referred to as the Initial Balance. This is especially the case in markets like ours which do not confirm to
24 hour futures trading and hence knowing the first 60 minutes of activity becomes very important for a trader
in the day time frame.But once it open out side the va's it is much more similar to Breakout failure pattern of
classic charts once its fails
As markets do not always stay within the first 60 minutes of activity the whole day, the movements outside the
initial balance often produce some amazing trading opportunities for all traders. Market Profiler named Ray
Barros is the person who bought this idea of Failed Auction.

Failed Auction Theory : A failure to stay outside the initial balance for more than 30 minutes (on one side),
followed by a revisit inside the initial balance and an opposite move on the other side of the Initial balance, but
with in this if the first candle of 30 mins is outside the va's (gap),then it may be open drive or a failure ,will lead
to downside..so for our market as per the core rule of the concept this amount to failed auction as per my
understanding !!!

"After a failed auction, the initial move is in the direction opposite to the one that failed, but the beauty

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of the theory as pointed by Ray Barros is that the market will revisit the failed auction zone in about 5-6
days in over 75 % of the cases." it is this point which can be used for swing trading

Since we are traders and have to assemble whole concepts in a flow without conflict particularly if you assemble
with Dalton ,so i trade this concept like this for F and o...

Hope this post will clear, all the confusion on usage of Failed auction

XRAY bro, one query I had about this open. There is common saying that market is opened by newbies &
closed by Pros. But in this case, the opposite seems true as entire focus of MP is on Market open. Can you
please clarify this doubt?

Hi XRAY Bro and followers,

Pls give ur comment based on this pattern., And what are the Probabilities on coming session,

This chart represent MCX CrudeMini Script, Previous days and Today sometimes data are missing.

Note : Still reading the books referred by u, nd understanding the concepts on live move. miles to go.

RPS. VINOD

change the alphabets to abcd in yr ninjatrader (finalg MP has the facility) as its difficult to read where is the
opening and which alphabet is which time frame. abcd is standard format.

the P shape you have drawn is wrong. pattern wise its right as it looks like P. but where is price closing and how
it has come down, which i think currently it is .

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P shape as def is short covering but here there is no such thing happening . dont focus on patterns in isolation.
it more looks like a trend day. split the profile u will see one time framing down. great day for intra as its an
open test drive.
as off now it looks like weakness in coming session wht kind of opportunities are there will depend how crude
opens in coming session

XRAY Bro,

Yes, my base set up is OFA, Due to the some uniqueness of MP,Just wanna adopt for better results.

RPS. VINOD

OFA !!! i used to trade (screen based trading )during my start in 2007,there after adopted to D and S....with in
that MP/VP ..watched V********* for OFA ( not naming the vendor as it may amount to advt (may be)i'm not
commodity trader and not using this (OFA) anymore

Three thing i have noticed

1.OFA which is the main base for scalping and it has not changed even adopting MP
2.OTF traders leg is not traceable with that...
3.As i Adopted to MP..need of OFA is almost negligible for me

People running after this because some zerodha winners named this ,but they are forgeting that there will be a
base system upon which they use this concept of OFA..
still i see many who are struggling to build a system or they end up with a setup with too many
arguments,which will lead to jumping jack action in market .

Finally what i realized in my 9 years experience is when there is edge just increase quantity not number of
trades

Xrayji is today a Failed auction day based on IB as open is outside VA and this failed level is supposed to be revisted in next 5 days
with high probability?

Manishji !!! Yes !!! as per my understanding of MP... just entered 9.47 for short which resulted in loss ( 13 pt) for
intra !!!

what is open drive trade? plz explain as per me OPEN DRIVE is a type of open and one need not wait for first 30 min candle or so.

kindly share your view.

regds,s

I think this is how it is explained in this thread.Gap open outside previous VA and then first 30 min candle break
in the direction of the gap.
I am trying to explain according to what i have learned from this thread.Lets wait for Xrayji's comment for
confirmation.
I agree one need not wait for first 30 min candle.But it is lot safer this way i think.One can enter on 5min as ST
sir suggested in pivots method.
By the way why not you share some chart examples of open drive,open test and open reject reverse.I dont

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understand the last two market profile terms and how those patterns would look on a candlestick chart.If you
know them well please share how you see them on a candlestick chart.

today open is open drive for me from the first 5 min bar. its not a certainty but on probability basis. now to arrive to such bias you
need to have knowledge of various blocks of market profile. and rather then taking them as mechanical pointers use them
holistically with the context. or background. study dalton book you will get the knowledge.

regds,s

The way i see this

1.open drive mean O=L or H of the day.It holds for the day.
2.Open test drive is when there is a small wick/some price action beyond open for a very short time in the first
candle but this candle closes in the direction of the gap and such extreme holds for the day.
3.Open rejection reverse is gap up outside VA but first candle closes in the direction opposite to the gap
open.This is rejection of the open.Break of this candle in the direction opposite to the gap is the reversal.So
pattern is open rejection reverse.It can be open reverse only if first bar shows acceptance.lol
This is my understanding/modification only and not according to what is shared by Xrayji.
So today is open test drive for me according to my understanding/interpretation.

sorry but i dont agree with your comment.By using previous day VA we have already defined context.So now
one can backtest these open gap patterns.Context/pattern that are not definable clearly cannot be backtested
and will always differ from person to person.Sharing of knowledge in subjective manner is not helpful to new
traders in my view.

It seems these are the only two good setups for Initiative/Breakout traders(Xrayji also suggested same
sometime back).Either it is open drive or it is failed auction( open rejection/reversal).Both depends on open
outside VA.If one gets Early entry on these two set up,preferably in the first half of the session then there is
enough time for favourable price movement.Most days will give one trade or no trade.I have checked for gaps
outside previous day high low and they use to occur 30% of time.Such days also tend to have higher average
daily range.Will check stats again with VA in the evening.

Close below VA meant price acceptance.Bias changed to down.Resistance at Val confirmed the bias.Initiative
trade should be taken outside VA.In price action terms it was
Breakout from sideways(VA/balance area represent sideways ).Entry is on the break of breakout bar.

Market profiles well but over expectations will not. I think with basic set ups such as 80%, auction failure, OD,
ORR that Xray bhai taught us here, we can easily make GOOD points per month. That's the double of what I
expected in my early expectations. I was happy with MIDERATE NF points as well.With 1 or 2 trades a day, what
else we want. I am also happy that thread is developing very well and we all are learning. Special thanks to
XRAY bro for all the hard work and now we have Manish, NAC, wisp, Sherbaaz, pakatil and many others

Here
Manish count me INN for any back testing. We can develope basic 4-5 set ups and work on it.

Today open =high,which is almost equal to my understanding of" excess "first 30 mins candle closed below VAL ,so short at 8935
exited @ 8913...now SOH

Nice example of excess trade.

Excess=Spike+Buying/Selling tail=End/Completion of Auction.

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Trading Spikes - A spike is a late day price probe either to the upside or downside during pit session hours. It
usually occurs in the last hour of the Pit Session. We are forced to await the market’s opening during the pit
session of the following day to verify whether it has been accepted or rejected. If the Spike was on low Volume,
then odds favor price reverting back to the mean - which would be the Value Area from the day the Spike
occurred. Spike's are also another form of Excess for e.g. if an upside probe was rejected we would be left with
a selling tail.

Upward Spike

A price opening below an upward spike would be considered negative since the price probe or spike was
rejected leaving a selling tail.
Opening within a spike shows price acceptance and keeps the rally in tact;
Opening and trading above an upward spike reveals that price has not auctioned (probed) high enough to cut
off the buying allowing for two-sided trade. The auction is not over.
The bottom of the spike is “support".

Downward Spike

A price opening and trading above a downward spike would be considered positive since the price probe or
spike was rejected leaving a buying tail.
Opening within a spike shows price acceptance and keeps the break intact;
Opening and trading below a downward spike reveals that price has not auctioned (probed) low enough to cut
off the selling allowing for two-sided trade. The auction is not over.
The top of the spike is “resistance”.

Source: Atul Malhotra blog

RE range extention happens because of confident OTF traders.Late RE can turn out to be a spike but
confirmation may not come on the same day and we have to wait till next day open.

Failed auction 70 %,RF matching with D and S levels 90% (probability of occurring is rear 2 to 3 times on EOD charts) otherwise
divergence 60 %,NPOC 60 % .

Probability of Npoc hitting is also for 5 days?60% is pretty low in that case.Can be used as higher tf Bias
indicator.I am still not able to export val vah poc data to excel via amibroker..Guess i need to do manual posting

of data.
Likes:Vipul_84

Probability of Npoc hitting is also for 5 days?60% is pretty low in that case.Can be used as higher tf Bias indicator.I am still not able

to export val vah poc data to excel via amibroker. .Guess i need to do manual posting of data.

MP has direct correlation with D and S ,by that you will know which NPOC is important and which one is not !!!,
Just according your comfort and understanding do the back test !!

No BT Manish bhai, will be studying this in ongoing market. Nice results from you, very surprizing that open within VA gives higher

daily range Let Xray bro comment on this.

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Its not higher daily range.It is higher minimum daily range.One would think that such days are slow low range
days but thats not true.Infact,open outside VA has higher probability of being a slow low range day.As far as
day's range goes there is hardly any bias for getting higher daily range on average.I was also surprised by this.I
was thinking of not trading on days when open inside VA.....more holidays.........Stats say you have to trade
everyday based on these numbers.:lol:

Likes:Vipul_84

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

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

I was amazed by MP concepts, as here we rarely talk about TREND All we discuss is day opening , reaction to IB etc but not
about trend anywhere. AM I right XRay bro?

Well ,weekly Va's are used for swing trading which will set as trend for daily and RF will be for positional trend
and i'm using every thing !!!I could not adopt myself ST da way of swing trading so going with weekly MP,But
beauty of MP theory is we can trade with previous days VA's

anishbhai can you explain little more this? DVA inside VA? Is this the sign of Sideways, then which are other signs of sideways
market? YEsterday was a RED DAY for me, mildly red though.

Price action inside VA represents sideways market.(in my view).

Elongated DVA profile is seen when movement is vertical and market is trending while D shaped DVA profile is
seen when movement is horizontal and market is sideways.Width of D is also important.On trend day D wont
be wide,that is,only small D is seen in between single prints or vertical price action.Also developing Poc
movement is important.DPoc moving to the center indicates sideways price action.

edit: Please read post no. 540.It tells about how market develops into sideways/trend in realtime.(Its really
helpful when price action is outside VA.Inside VA its sideways anyways).Hope this helps.

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Dear xray bro,
Am still not getting your way of trading in swing and positional! !!!can you please give some comments after enter swing /pos
trades? Just give the reason for entry for next 2 or 3 trades. ..even after marker it's okey. ...

I explained all in starting posts of this thread just check it !!!

Weekly va's are used for swing trading with targets of NPOC or failed auction area
Daily charts with RF will be used for positional trading..

FINAL SETUPS

Note down weekly va's and trade for trend, if VAH and VAL is breached during that week if not just stick to
intraday..this is what i do !!!

Another one is failed auction which was discussed in detail in this thread !!!

Okey. ..so if today bd 1st 30 bar and reverse and bo 1st bar you take long?btw good short trade for me

First 30 min candle was broken and i would have gone long if the break of the 8823 weekly VAL,but that went
into 30 min bar range so no long for me,shorted on BO of IB and this turned out to be a scratch trade !!!
Intralong would have happend on 10.3 bar high (which not happened )

Swing above 8823 for FA/Poor high of 22 nd...

Then why not today's action not failed auction? means in 1st hour

Today,open below VA.So failed auction is possible if price break IB to the upside without any 30min candle
closing below IB.Is there a break of IB to the upside in your 30min NF chart today?

Failed Auction checklist.

1.Open outside VA.
2.No 30 min close beyond IB in the direction of open (means no continuation).
3.Break of IB in the direction opposite to that of open(means price rejection).

IB=First 2 30min candle or first hour range.

VA=Previous day value area.
Open=Today's opening price.

Xrayji,
I have a question regarding 80% rule.Rule is applicable when,
1.When open is inside VA (This is based on open).
2.When two consecutive 30 min candle close inside VA (This is applicable at all time).

My question is regarding 1.Can we apply the rule with first candle close itself or should we wait for 2 candle
close (2 IB candles closing inside VA)?(second case would mean
1 is irrelavant)

First of all 80 % rule is based on IB or first hour !!! if you want it to 30 mins then just back test it and form your
own conclusion !!!

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i'm just following only on 30 mins as per theory !!!

[H]-----------------Break above this = Open Drive

[O] First30mincandle

[L]------------------Break below this = Failed Auction(if there is no 30 min candle close above IB in the direction
of the open.Break is tradable after the first bar itself or one may trade after 2 30min bars are formed.)

=============================
VA

So 80% rule is not applicable if two consecutive 30min candle close inside VA after IB period is over?

What is the logic of 80 % ...just to avoid balance market ,market is struggling to go out of this area then- 80 % it
will remain in this area

In single line once it closes in va, just see for 80 % rule !!!

What is the logic of 80 % ...just to avoid balance market ,market is struggling to go out of this area then- 80 % it will remain in this
area

In single line once it closes in va, just see for 80 % rule !!!

Thanks sir for simplifing this into a single line.:clapping:

Anytime 30min open/close inside VA 80% rule is applicable.

Check list of MP which i follow

INTRA

1.Open/close with in VA then remember 80 % rule unless it comes out of VA

2. Open outside VA check for OD

SWING

1.Based of weekly VA entry

2.FA will be for target booking ,if there is no such thing just ride the trend

3.if daily va is with in weekly then just do intra for the week

POSITIONAL

D&S along with RF

The difference is due to poc selection.Poc is the highest frequency price.In my view C better represent poc than A in my chart.In
chart given by Xrayji poc chosen doesn't look right as its not the highest frequency price.But this is based on visual only.Xrayji/Wisp

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can better confirm if this is true ?

Distribution look very similar so problem doesnt seem to be because of data.Maybe be there is some programming bug in the poc
selection part of the afl.Current week values are matching which again suggests data is not the problem.

There are no 100 % perfect softwares for MP, there are some hiccups TOP/POC ,i use GFDL and all GFDL
fellows are getting same value's so is this bug or data?? !!! Software accuracy ranging from 90 to 97 %..Whole
thread is based on kaka afl
Anyways try some other source..as my knowledge in programming is zero !!!

Happy Singji could you please draw the VAs on the trimodal profile given in the post no.651.Its the drawing for B and C which is not
clear to me as there is no thin part in between B and C.Is it ok to combine B and C into one VA and then average the B and C to get
the Poc?Please give your view?

Please don't over complicate it, no need to apply any extra maths to it . . .
Go back to basics what is PoC, why does this so called PoC work in the first place . . .
During last trading day/week this (PoC) is the price point where maximum trades have taken place
so this price tends to attract more traders (price doesn't have memory but traders have)

Based the M/V Profiling theory the basic definition of auction Markets is as follows
"The Purpose of the Market is to facilitate trade" and as per this theory
the price will go where maximum trade facilitation is possible . . . i.e.
highly traded areas from previous trading sessions

Now for defining VA 70% of Volume/TPOs is a thumb rule . . . and the PoC is the Level at which
maximum volume is traded/time is spend/max market activity takes place . . .

There would be days when this is very clearly defined and

the maths part works out nicely into a well defined MP chart,
other days we have activity spread over the range.

Just keep observing how the price reacts at these levels / zones and the understanding will grow

When 1st 30 bar closed abv VA ....if that 30 bar low broke its not FA?or wait for two 30 bar and bd?

XRAY27 said:
A failure to stay outside the initial balance for more than 30 minutes (on one side), followed by a revisit inside the initial balance and
an opposite move on the other side of the Initial balance.

vijay bhai !!!

Both are FA

failure of Gap up as well as failure to continue this failed move and moving in to IB range !!!

A failure to stay outside the initial balance for more than 30 minutes (on one side), followed by a revisit inside the initial balance and
an opposite move on the other side of the Initial balance.

Bro, just trying to understand your statement clearly. Please confirm if I have understood clearly.

Today's first bar opened above VAH and closed above VAH

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2nd bar broke low of first bar and entered VA
1st bar and 2nd bar together formed IB
3rd bar revisited IB area
4th bar bar moved opposite to 3rd bar direction?

Answer is !!!

4th bar bar moved opposite to 3rd bar direction and move past 1st bar..

In simple words Failure of Gap up/down and failure of this failure !!!

Opened within VA. IB broken. Struggling to remain there.

Failed Auction...??

Failed Auction

1.Gap up opening above VA and gap down open below VA but failed to continue in that direction
2. Above sited is another example of Fa..

Well , i have covered all the parts of trading, including swing in this thread !!! just a recap, RF will be used on
daily charts for positional and divergence as entry mode ,just watch some charts with RF on daily you will
understand
Swing will be based on D&S along validation with MP !!! post 12 in pdf !!!

Xray Bro, had a query regarding Failed Auction.

For this FA, we look for Initial balance range. And when the range is broken on one side and market again
closes back in half an hour then its FA, right?
What if, market closes back after half an hour ( i mean markets remains beyond the IB for more than half
and hour)?

Failed auction and Failure swing are same...nothing special ..coming to your present
example it will be also FA – IMO
Swing trading is will be done on basis of weekly profile... at rare case it can reach monthly profile high and lows
in case of strong trend...and my entry time is 15 min and profile reading time is 30 min which i mentioned in the
start of the thread:

Rules:1. Use weekly profile as DP for Profit booking and entry

2. Above VAH highly bullish and VAL bearish !!!!
3. POC will be one of the entry DP
4. Price action is the key

AFL for this is already shared in the thread

Final Bullets :

1.Intraday trading use previous day Daily MP for todays trading and profit booking NPOC,Failed auction etc
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comes into play

2. Use weekly profile of previous week for current trading

Dear Xray,
Whats are the thought process in your 1st long trade?
price opened above VA but traded inside VA and not completed 2 30 bars ?Is it only reason it took support @ POC?

Vijay !!!

Just check the distance between VAL and POC...not much play area so waited for just completion of 30 min
,once its taken support on POC it become nice setup !!!
if play area is equal or big then we have to wait for Initial balance area..on that day FA and excess will be seen !!!
Just check VA ,s for today !!!

Range extension: A price probe outside of the established range that indicates that more aggressive
participants have entered the auction

Below is the best example ....hope i'm able to make people understand !!! put your query in case of any

doubt

Just presenting a image for intraday netshell with MP...along with this learn "DD" (Double distribution) more
then enough for intra day...
if the distance between va's is less then wait for BO and for trade use aggressive entry as defined by ST da !!!
i trade with static mode with previous days MP..

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Lot was discussed on MP..but just presenting a volume profile POC setup for intraday trading !!! i think it was
old thread i could not dig that out ,but afl for this is from net source...all credit goes to the author for this it got

great use in stock trading and index fut..there is no complex NPOC/FA/80% rule etc...

SETUP:

DP's needed PDH,PDL,Previous day volume POC

Flow:

Started this thread and shared 4 methods 2 for intra and swing/positional one each ..
Two methods of intra: One is based on MP and another based on vpoc with PDH and PDL
Swing: based on MP weekly with 15 min TTF along with D and S of 30mins for PB
Positional: based on RF on daily.

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