Market Profile (Auction Market Theory) Chart

[Tubbs]

I thought that I would start a Market Profile of the FTSE and share it with the rest of the gang - at least for a while. You're probably going to rubbish it so I'll just put it up for the people who may use it.

For those of you not familiar the letter stand for half hour movements of the FTSE. The black line is the open balance (first hour's trade) the yellow line is the value area and the purple is the actual value. The red and green boxes show the open and close. The chart is from monday and the left chart shows accumulation.

 

[GeckoTime]

Tubbs, could you please xplain what this chart is meant to be telling us/what the point is?

 

[Tubbs]

The point

the chart identifies 'Value' in the market place over a number of days the purple box shows the value point - which coincides with the price at which most time was spent in the day. This value in the market is hidden without such a chart and I therefore thought it might be useful to some people. As you can see the market stalled on the downside on tuesday and wednesday - which may have pointed to a move up in value.

In effect the best use of the chart is to identify the point which the market will pivot around. I hope this answers your questions. For further info look on the net at www.cisco-futures.com

 

[bonsai]

Tubbs

that's fine as far as it goes.

but its gonna need some narrative
and timely posting when there is a breakout ?

 

[mmillar]

www.cbot.com/marketprofile



Tubbs - what software are you using to produce this?

 

[Tubbs]

trading it

well as far as I can tell the ol' trading of it can be done how you like - it merely gives a tendency of the current market condition - so - if it's breakouts you want look to trade the break of yesterdays profile (the price that is used is the last price where two or more letters appear so 4398 yesterday). Since we've already have that you might have traded it. I prefer to take things a little more safe and trade longer term i.e. if value is at 4385 then buy as low as it will go. You know you've got a bargain. I'm really still trying to find a feel for the data myself - that's why I posted it on the forum - for a bit of feedbck. Of course a daytrader could identify value and trade it in the day. Todays chart looks like this so far BELOW - the top side is not developed and therefore will be at some point today.

 

[Tubbs]

software

mmillar - I'm using good ol excel - with a few cell formulas added. So I have to look an intraday chart and put the initial letters in for the day. This then creates the charts for the week and month. The calculations of value etc are all done myself. I have no intraday feed and so I do it the hard way - By the way is the weather nice where you are?

 

[mmillar]

You do it all by hand???

Blimey.


The only person I know who seems to use MP on a regular basis is www.21stcenturyfutures.com. I just use the Value Area as another factor to determine whether we are bullish or bearish for the day.



Weather here is wonderful as always...

http://www.bbc.co.uk/weather/5day.shtml?world=1563&links

 

[bonsai]

tubbs
ok, but that's not really Market Profile

which reminds me what happened to Dr Lecter ?

 

[Tubbs]

names names

the only difference is in the name - and i don't have the volume data bank - but don't look a gift horse in the mouth - you want the chart or not?

 

[bonsai]

well as far as I can tell the ol' trading of it can be done how you like

My mistake

I assumed you had your method of trading to make the chart useful and that you would be posting that as well.

 

[Tubbs]

depends how I feel!

No really I think I'm the last person to give advice on trading - I'm hardly a guru. Just thought the charts might be useful as the data is quite unique

 

[Bigbusiness]

Keep posting them Tubbs. I will have a good look when there are a few more charts. Its hard to see how useful they are until there is enough of them.

 

[Tubbs]

Chart for 17-21 Nov

Back charts for correlation purposes

 

[Tubbs]

Chart 24-28 Nov

Another

 

[Tubbs]

Chart 1-5 Dec

December

 

[Tubbs]

8-12 Dec

Last One