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Its based on Steidlmayer's market profile
theory. Dalton's "Mind Over Markets" is a good place to start. Also
the http://www.cisco-futures.com site
has a free textbook on the topic. Basically, the theory trades off of the
volume distribution of price, sort of like the TS Activity bars. The old
theory uses the previous day's value area, but my experience has been that that
area is only good for the AM session and the PM session is more influenced by
the current day's distribution. Price can bounce back and forth within the
area on normally distributed days, sort of like we have had today. Price
needs at least two closes outside the area to be in effect. At the moment
it is still testing the boundaries. Here is a simpler shot using price
only that says a similar thing using a 1/3 and 2/3 of the current day's range.
The midpoint is now resistance so a break of the lower boundary is pretty
high. This coupled with the convergen breadth spreads adds probability to
the trade.
bobr
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Lee Morris
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, October 04, 2001 12:26
PM
Subject: RE: [RT] Markets
<SPAN
class=080051919-04102001>could you explain this trigger a little more as the
view of the chart is hard to read w/ the hyperclick logo and the charts small
size. you might try snagit and avoid the logo and size problem. not clear on
what is "a break of the value area vol dist".
<FONT face=Tahoma
size=2>-----Original Message-----From: BobR
[mailto:bobrabcd@xxxxxxxxxxxxx]Sent: Thursday, October 04, 2001
3:12 PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re:
[RT] Markets1077.5 no guessing here, a break of the
value area volume distribution, doesit.bobr-----
Original Message -----From: "Ira Tunik" <irat@xxxxxxxxx>To:
"realtraders" <realtraders@xxxxxxxxxxxxxxx>Sent: Thursday, October
04, 2001 11:55 AMSubject: [RT] Markets> Everyone is
guessing at tops and points to sell. There is divergence,>
buying pressure has not been able to overcome the depression of
price.> At this time I do not have a sell signal. There is
currently a> retracement occurring in the shorter time frames and it
appears that a> down move, retracement of this up move, could be
starting. Guessing at> tops and bottoms can be very dangerous
to your financial stability. One> should enter a trade based
upon a specific target to the upside or> downside. At this time
price has reached many of my upside targets so I> would expect
resistance to a further move to the upside. As yet I do> not
have an Entry Price for a move down or for another move up. Until
I> get one, I will be out of the market.>>> To
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