|
PureBytes Links
Trading Reference Links
|
There are several things to look for:
1. Shape of the distribution, is it "normally distributed" or skewed, i.e.
does it have a bearish or bullish skew where the long TL is not in the
center of the H - L but nearer one end of the price bar.
2. Is the full width half maximum of the distribution wide or narrow, i.e.
is the distrubution "box" height tall or short. This says something about
the population of prices and agreement on value. Trending breakouts occur
easier from narrow distributions. They are a decision point like a
contracting triangle.
3. Note how the different periods of the day have different character. The
market profilers have been accustomed to using 30 minute profiles and you
will often see reversals around the top and bottom of the hour in the
morning where price bounces off of the tails and returns to within the
distribution boxes. Tails are the low populations above and below the 1 std
dev distribution box. Wednesday had a trending break in the AM, followed by
lots of rotation, followed by a trending break. It would be useful to keep
several charts in different time frames running. I would recommend keeping
a daily with 390 min for stocks and 405 for futures as well as a 30 minute.
Scalpers may want to use shorter times like 15 minutes.
4. Watch for a break of one edge of the distribution box as that may be the
ending of rotation and the beginning of trend or price facilitation as it is
also called.
5. The distributions appear to have a fractal nature that occurs when the
sample time is short like 15 or 30 or 60 minutes or even daily. So during
the day you may perceive a clue as to the personality for the entire day.
6. Value area boundaries(top and bottom of the dist box) may become support
and resistance later in the day because they were a consensus of value at
one time and thus were the origin of longs or shorts and thus become
stoploss and target points for day trades.
7. One key is to think in terms of rotation, i.e. is price oscillating or
building along one of the TL's. Is it breaking out and making a run leaving
a trail of short TL's in its wake? Watch for a TL to start growing meaning
price is consolidating.
It would be generous if Gregory or Clyde could code something like the
rotation and trade facilitation indexes to use with this novel tool.
Hope that helps,
bobr
----- Original Message -----
From: "snptrader1" <snptrader1@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, January 16, 2002 8:40 PM
Subject: Re: [RT] Fw: Price Distribution Histogram
> Could you explain exactly what it is we should be looking for or how best
to
> use this indicator in RT? (I've never done any market profile work)
> Thanks-
> Steve
> ----- Original Message -----
> From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Wednesday, January 16, 2002 8:55 PM
> Subject: Re: [RT] Fw: Price Distribution Histogram
>
>
> > Just a followup on the GWPD(Gregory Woods Price Distribution)....It
really
> > does run on one tick bars. Here is a chart set for 30 minutes
> distribution
> > on both of the time inputs. A data window shows the prices of each TL
and
> > most important the longest TL in cyan. Note where the short at
> > 12:26(pacific time) started, within one TL of the longest TL. This is
> > pretty amazing. Kinda shows there are some people or computers out
there
> > that are finely tuned to this stuff. A chart like this in realtime
should
> > help reading price distributions for bullishness or bearishness or
> > consolidations.
> >
> >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Access Your PC from Anywhere
Check Email & Transfer files - Free Download
http://us.click.yahoo.com/1njxPB/wakDAA/cosFAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|