nextSignals
5/

of the Market Profile graphic ... the Time Price Opportunity (TPO) distribution.

Again, value is the key to understanding, but this time we evaluate value based on how much *time* market participants spent transacting at various prices during the trading session.
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1 yr. ago
nextSignals
1 yr. ago
In response nextSignals to his Publication
[Sat AM Part 2]

You'd have to read Part 1 before this thread to have this make much sense. Page down 1 tweet for Part 1.

Herein, I describe... in simple language... what the Market Profile graphic is about and the information it provides those who trade auction market process.
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nextSignals
1 yr. ago
In response nextSignals to his Publication
2/

The Volume Profile overlay we saw in Part 1 is now flipped 180 degrees and is composed of transaction volume recorded at each price level, during Friday's auction. I've labeled the key parts with explanations.

We can immediately see that transaction volume for the day
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nextSignals
1 yr. ago
In response nextSignals to his Publication
6/

If you take the time to read the explanation to the right of the distribution ... you should understand the TPO chart.

The basic concept in Market Profile analysis is to observe the trading early in the day and construct an analytical picture that clarifies where ...
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nextSignals
1 yr. ago
In response nextSignals to his Publication
4/

re-testing prices up and down ... in a quest to determine fairest value ... it would be reasonable to expect Monday's auction to re-test 4086 before moving forward in its quest.

If you've read the orange text labeling the volume histogram, we can move to the right half
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nextSignals
1 yr. ago
In response nextSignals to his Publication
3/

formed a bell-shaped curve where the fairest price for a futures contract in $ES_F was ~4086. Those who bought at the low end of the Volume Profile ... known as a "buying tail" profited.

Since the day's trading finished around 4100 and since auctions are constantly
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nextSignals
1 yr. ago
In response nextSignals to his Publication
7/

fairest price is and what actions traders take near price extremes in balanced markets ... in order to initiate trades when the market becomes unbalanced ... i.e. trades away from market-determined fair value.

Let's pause again so you can digest Part 1 and Part 2.
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