JD Mind Over Markets

8/13/2019 JD Mind Over Markets

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James Dalton

Mind over Markets

,, .

(crambe 12)

James DaltonMind over Markets

298 . pdf

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Laying the FoundationThe AuctionOrganizing the DayChallenging the RulesThe Role of the MarketplaceGoing with the Crowd

Introduction to Day Timeframe StructureNormal Day

Normal Variation of a Normal Day

Trend Day

Double-Distribution Trend Day

Nontrend Day

Neutral Day

Day Type Summary

3

Building the FrameworkThe Big Picture: Market Structure, Trading Logic and Time: ,

A Synthesis: Structure, Time, and Logic: , , Ease of LearningAmount of InformationRecognition Speed Trade Location Confidence Level

Summary -

Evaluating Other Timeframe ControlOther Timeframe Control on the Extremes

Tails (or Extremes)()Range Extension

Other Timeframe Control in the Body of the Profile


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TPO Count TPO

Initiative versus Responsive Activity()Initiative Buying Initiative Selling Responsive Buying Responsive Selling

Trending versus Bracketed Markets()Key ElementsA Brief Discussion -

Trending Markets Bracketed Markets ()

The Two Big Questions

4

Doing the TradeSection I: Day Timeframe Trading

Day Timeframe Directional ConvictionOpening CallThe OpenThe Open as a Gauge of Market Conviction,

Open-Drive-Open-Test-Drive--Open-Rejection-Reverse--Open-Auction -

Open-Auction in RangeOpen-Auction Out Of Range

SummaryOpening's Relationship to Previous DayOpen Within Value

AcceptanceRejection (Break-out)()

Open Outside of Value but Within Range ,

AcceptanceRejection (Break-out)()

Open Outside of Range AcceptanceRejection (Break-out)()

SummaryApril 13,1989

Crude Oil

S&P 500

GoldJapanese Yen

Soybeans

Treasury Bonds

SummaryDay Timeframe Auction RotationsTwo-timeframe MarketsOne-Timeframe MarketsUsing Auction Rotations to Evaluate Other Timeframe Control

StructureHalf-hour Auctions

ExtremesRange Extension Time

Identifying Timeframe Transition


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December Swiss Franc, October 12,1987

Y-E: One-timeframe BuyingE: TimeY-F: Auction TestG: Transition ConfirmationE-H: One-timeframe SellingH: Auction TestI: Transition Confirmation

H-J: One-timeframe BuyingSummaryAuction Failures Excess

Signs of Excess The Rotation FactorTPO TradingTPO The Close

Day Timeframe Visualization and Pattern Recognition ()

Short Covering RalliesLong liquidation Breaks

Summary of Short Covering and Long Liquidation LedgesSummaryThe Liquidity Data Bank

The Anatomy of the LDBGeneral Uses of the LDB

Total Volume The Value AreaDispersion of Volume

MethodologyCti FiguresCti Acceptance of Value Outside the Value Area High Volume ConcentrationsTop Five versus Bottom Five5 5Trend Tests

Average High VolumeOpening Range Volume

SummaryEvaluating Commercial Activity

DefinitionCommercial Logic Expected Response Unexpected Response No Response

Identifying the Significance of PriceAverage Daily Cti2% (Total)()Average Cti2% above the Value AreaAverage Cti2% Within the Value Area Average Cti2% Below the Value Area

Cti2% in ActionCti2% LDB SummaryHigh- and Low-Volume Areas

High-Volume Areas Identifying High-Volume Levels

The Liquidity Data Bank (LDB)

The Market Profile GraphicTick Volume

High-Volume ExamplesExample 1: Up Auction; Probe Down Into High-Volume Area


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Example 2: Down Auction; Probe Up into High-Volume Area

Low-Volume AreasIdentifying Low-Volume Areas

Low-Volume ExamplesExample 1: Low Volume as Resistance

Example 2: High and Low Volume Used Together

Summary

SummaryDay Timeframe Trading

Section II: Long-Term TradingLong-Term Directional ConvictionAttempted Direction: Which Way Is the Market Trying to Go?

Auction Rotations Range Extension Long-Term Excess

Island Days Long-Term TailsGapsSummary

Buying/Selling Composite Days/

SummaryDirectional Performance: Is the Market Doing a Good Job in Its Attempts to Get There?

VolumeEvaluating Changes in Volume Volume as a Measure of Directional Performance,

Value-Area Placement Evaluating Directional Performance through Combined Volume and Value-Area

Placement

Value-Area Width Summary: Long-Term Activity RecordLong-Term Auction Rotations

BracketsTrade Location in a Bracketed Market Rule 1: Monitor market direction and location within the current bracket Rule 2: Markets generally test the bracket extreme more than once Rule 3: Markets fluctuate within bracketed regions Rule 4: Monitor activity near the bracket extremes for acceptance/rejection /

Transition: Bracket to Trend: TrendsTrade Location in a Trending MarketMonitoring Trends for Continuation

Transition: Trend to Bracket: Detailed Analysis of a Developing MarketBracket Reference Points

Region A(4-98)Region B(4-99)Region C(4-100)Region D(4-101)

Long-Term Auction Failures Long-Term Short Covering and Long Liquidation

Applications

Corrective ActionThe Function of Corrective Action


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SummaryLong-Term Profiles

Using Long-Term Profiles The Long-Term Profile in Action

Region A(4-109 & 4-110)Region B(4-111 & 4-112)

Summary

Special Situations

3-I Days3-I Neutral-Extreme Days-The Value-Area Rule

Distance from Value Value Area Width Market Direction

SummarySpikes

Acceptance versus RejectionOpenings Within the SpikeOpenings Outside the SpikeBullish Openings

Bearish Openings Spike Reference PointsBalance Area Break-outsGaps

Day Timeframe Significance of Gaps

SummaryMarkets to Stay Out Of

Nontrend Days Nonconviction DaysLong-Term Nontrend Markets News-Influenced Markets,

Summary

NewsSummaryBeyond the Competent Trader

5

The Results Equation: Market Understanding x (Self-Understanding + Strategy) = Results

: ( + ) =Self-Understanding: Becoming a Successful Trader

: Self-ObservationThe Whole-Brained Trader

The Left HemisphereThe Right Hemisphere Combining the Two Hemispheres

StrategyA Business Strategy

CapitalLocationTimingInformation

Know Your Competition Know Yourself Consistent, Daily Execution. , Inventory


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RiskGoalsRecord Keeping and Performance Dedication

Applications

Summary

6

APPENDIX 1 1VALUE-AREA CALCULATION

Volume Value-Area Calculation

TPO Value-Area Calculation

APPENDIX 22REFERENCE TEXTS AND EDUCATIONAL LITERATURE

Literature( )


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Mind over Markets, Market Profile.

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James Dalton - Markets in Profile MiP, .

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(crambe12) [email protected]

crambe12
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Market, Markets , , Timeframe ,

Day Timeframe Trading Long-Term Trading Trade location Long, Longs Short, Shorts

Buy, buyer

Sell, seller ullish sentiment , Bearish sentiment ,

Auction, s process - auction up auction down

longer-term auction short-term auction Inventory Opportunity .Local, Locals - , , (

), , ,

Other timeframe , , .

Time Price Volume Derivative source -

Break-out

Day timeframe trader Longer-term trader Swing trader -

Trend UpTrend - DownTrend Trending market ()

(value), ( ),

Bracket (). , ,

Bracket extreme ()

Bracketed market Balanced market

out-of-balance new business

old business


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Market Profile Statistical bell curve roughly one standard deviation (68%-70%)Time Price Opportunity (TPO) -

TPO

Value Initial balanceIB (60 ) 30

, -

Point of controlPOC(price x time = value)

( x = ) TPO,

Area of balance Double TPO price prints TPO

Single TPO price prints - TPO

running Profile

Tail single print buying tail -

single-print selling tail -

TPO Count TPO. TPO ( ) (point of control) ,

(short) (value). , TPO (point of control) , (long) (value).

Normal Day - ,

,

Normal Variation of a Normal Day , Normal day

Trend Day standard Double-Distribution Trend day.

,

Double-Distribution Trend day (initial balance)

Nontrend Day

Neutral Day , (value)

Market structure Market time ,

Market auctions - half-hour auctions

. .

Trade facilitation

Market confidence Directional conviction Strong conviction

Nonconvictional


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Reference points , ( ..) POC

follow-through ( )

Price rotation Auction rotations

Rotation Factor ,

Range

Range extension Overlapping () Extremes

INITIATIVE - RESPONSIVE ACTIVITY - Initiative Buying ,

(value area)

Initiative Selling ,

(value area) Responsive Buying Responsive Selling Opening Call

Open - opening bell ( )

Open-Drive - ,

Open-Test-Drive - - (Open-Drive), ,

Open-Rejection-Reverse - - ,

, ,

Open-Auction -

open-auction in range

open-auction out of range

OPENING'S RELATIONSHIP TO PREVIOUS

DAY

Open Within Value (value) ( TPOs ), ,


,

, , , ,

Open Outside of Range , ,,

Initial test Acceptance Rejection (Break-out) ()Two-timeframe Markets ,

, , -

One-Timeframe Markets (, ) , -

Other Timeframe Control


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Timeframe transition Transition Confirmation Auction Failures ,

Excess , ()

Signs of Excess (),

, , . , ,

, . ,,

The Close ,

Day Timeframe Visualization Short Covering Rallies

, (short positions), ,

Long liquidation Breaks

Ledges , -

The Liquidity Data Bank High- and Low-Volume Areas

High-Volume Areas - (High-volume) , ,

Low-Volume Areas - ,

Tick Volume

Section II: Long-Term Trading Long-Term Directional Conviction Auction Rotations

.

Long-Term Excess Island Days - ,

Long-Term Tails - , .

.

Gaps - (gap) , (value),

Buying/Selling Composite Days /- , ;

composite Buying day (composite buying day) ,

composite Selling day (composite selling day) ( )

Volume ,

Evaluating Changes in Volume - ,

Volume as a Measure of Directional

Performance

-

Value-Area Placement - ,


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inside day ,

outside day , ,

Transition: Bracket to Trend : - , , ()

Transition: Trend to Bracket : - , , . () , ,

Long-Term Auction Failures - , , () (follow through).

Corrective Action - , Special Situations

3-I Days 3-I - 3-I day , TPO count, .

Neutral-Extreme Days -- , ,

, , ,

The Value-Area Rule (doubleTPO prints) , , .

Spikes ,

Balance Area Break-outs -

Gaps , - ,

invisible tail. , , , , , .

Break-away gap ,

Acceleration gap ,

Exhaustion gap

Markets to Stay Out Of Nontrend Days -

,

Nonconviction Days (Nonconviction day) ,

Long-Term Nontrend Markets

, , , , , .

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Mind over Markets - -. ,

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:

, (Peter Steidlmayer). , . , , . .

, . Mind over Markets , . , :

(Peter Steidlmayer) , . , 1985 , , , , - ? , . . (MarshallField's) (Field Museum), , .

(Peter Steidlmayer) , , . , , . , . , (Peter Steidlmayer) . ,, .

, .James F. Dalton

Eric T. Jones

Robert B. Dalton


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1

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Mind over Markets, . , , ,

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, Mind over Machine( ).

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2-1


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Laying the Foundation

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The Auction -

, , . , / . , , , , .

, , . , 86 , . , , . , , .

. : 80 ?. , . 78?.. 76?.. 74 ?. , , 72 . , , 76 . , ,. , .

, : 82? 82 ! 84?.. 85?, - ,

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Organizing the Day

- (Time Price Opportunities, TPO), . ( ).

. (, ).

, . : , . , , .


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( 2-2) ., ( ) (Treasurybonds)

1/32 1000$, 31,25$. , , ,

( ), 9629/32 9710/32. ( ) 9631/32 974/32, . ( 2-2).

2-2


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(bonds) , , , , . ( 2-3).

2-3


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1. , () (initial balance).

, , .

, , . 96

29/32 97

10/32 , , locals,

. , locals ,

, , .Locals , , ( ),

, , . - , . Locals 50% .

locals , - . , . , ,, (General Motors)(J), , , , .

, , ,

, , , . (), (other)

( ). , locals, . , , , General Motors -. , , .

2. D ( ) 9625/32.

, Locals, (range extension). , - - ( ). Locals , - . - .

- , D . - (othertimeframe buyer), , (other timeframe seller) .

3. 9624/32 . ( K)

. (other timeframe seller)

, 9625/32 9617/32. ,

.

4. (range) . 96

17/32 97

10/32.

5. - ( , - ).

- , 9710/32

9629/32

.

6. , 70% , ( )- ( - value area).

, - , , ,


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. - .

, - , .

25 9624/32

9703/32.

TPO., (value area), 1.

7. "K" - (single-print buying tail).

, . .

. , ., , ,

. - 2 TPO .

8. - (single-print selling tail).

, . . (CD) , .

9. TPO (point ofcontrol = POC).

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() , . , .

10. . . ,

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Challenging the Rules

. , , . (Roger von Oech), "" ("A Whack on the Side of the Head") .

... , .

, . : " ", " ". , . , , . , , , . , .

1. , ;

. . , Amazing Grace.


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The Role of the Marketplace

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. ,

, . - . , . , . , .

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, : ., - .

, . (Johannes Gutenberg) wine press , , , , . , , .

, . locals, . , , , , . , , .

, , ,

, , , . ,

, .


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Going with the Crowd

- " ", , . , , , , , . , , , . , .

, , , , , , . , - - , - "", , . , , . , - . , , , .

, , "" .

. , , , .

, - , " ".

Introduction to Day Timeframe Structure

, , , - (single print buying tail).

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, , , , (initial balance) , .

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Normal Day

Normal Day , Normal Day , .

, , .

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, , , . , , , . , . Normal Day ( 2-4).

Normal Day , , .

( 2-4) , 96

04/32 97

14/32 .

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: ( ) , .


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2-4


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Normal Variation of a Normal Day

Normal Variation of a Normal day , Normal day.

, . , , , , .

- ( Normal day). ( 2-5) D ,

. (trade is two-sided), (area of balance).

Normal Variation of a Normal day , Normal day(1 2-5).

, , , .

( 2-5) D,

( 2). , , (locals) ( two-timeframe trade). , , (value), (3).


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2-5


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Trend Day

Trend days: standard Double-Distribution Trend day.

, .

, ,

. , (Trend) () (), (new business), , ,, .

Trend day, , ( 1 2-6), (opening bell).

Trend day ( 2-6) , (2 3).

" "(one-timeframemarket). " " (one-timeframe buying Trend day),

( ) , .

, " " (one-timeframe selling Trendday) () .

, ( 2-6) D , , . G , E( ), H G, J, L . " -" (Trend day).

(Trend day) (Normal Variation) , , (), TPOs

. , Trend day,

, . , .

, , .


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2-6


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Double-Distribution Trend Day

Trend day, (Double-Distribution Trend day), .

, (). , ,

. , .

(Double-Distribution Trend day) (Trend day) .

(initial balance) (Double-Distribution Trend day).

, (IB), , ( 1 2-7). (2-7) , F G ( 2). (value),

(value area) , TPO(single TPO price prints) (3).

, (reference points) .

TPO, (Double-Distribution Trend day), (reference point) . (single prints) , , (double prints), - (value).

, (Double-Distribution Trend) ( 2-7) F(single prints) ( 4) , , , ,

.


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2-7


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Nontrend Day

(Nontrend day) (directional conviction).

. () - . ,

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(Nontrend day) , , . , , .

, .

, , (2-8).

2-8


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Neutral Day

(Neutral day), , (value) .

(value), , , .

(Neutral day) (

, (Trend) (Normal Variation), ).

, (value), , , , ().

, , locals.

(Neutral day) - " " " ". , , , ( 1 2-9).

, , ( 2 3). , (4), .

" ": " - " (Neutral-center) "- " (Neutral-extreme).

Neutral-center day, , , .

Neutral-extreme day, , .

Neutral day,

. , ,

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2-9


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Day Type Summary

( 2-10) , , .

, (Nontrend day) (Trend day).

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2-10


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Building the Framework

, .

, .

The Big Picture: Market Structure, Trading Logic and Time:,

: , .

, .

, TPOs . , .. , .

, , ,

., . .

. , ,

, , . closing bell . (value), 50 50 , .

, . , ,

, , , (value) (price x time = value)

2. (value) (value area)

, .

.


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. , . ( ), , , (value). , (value) .

, , , , . , . .

. , . .

(value) , . , , . - , .

- . , ,

; , , . , . , .

, , (tail) . TPOs , , - , , , , .

, , . , .

.

A Synthesis: Structure, Time, and Logic: , ,

, . ( ),

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(). , . , , , , .

(Market time) (trading logic) . .

, :

Ease of LearningAmount of InformationRecognition Speed Trade Location Confidence Level

Ease of Learning

, , , , , , , , , . , ,

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, .

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Amount of Information

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Recognition Speed

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Trade Location

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Confidence Level

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(Market time) (trading logic), .

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, , ,

, (), .


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Summary

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( ). , , ,

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Evaluating Other Timeframe Control

, , -, . () . , ,, , , .

, , , , , . ,

(value area) . , . , (value), , .

, (value). , , . , , .

, , . , , , . , , .

(rangeextension), (tails), , , (value area) . , , , . , , , , .

, . .

(Longer-term traders) , (longer-term auction) , . (value area) , 4.

, , - , , () .

. , , , , . , , , .

. ,

. , , . , ,


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() , . , (value) , . ( ). , , (shorts), . ., , , .

, , . , ,, , , . , , .

, .

Other Timeframe Control on the Extremes

Tails (or Extremes)()

,

. , , ,( , TPOs). , , ,

. , .

.

Range Extension

(Range extension) , / . () , , .

, , ( ).

, (Trend day) .

Other Timeframe Control in the Body of the Profile

, , (value) ( ). , . ,

(General Mills) . , , . , , ,

. , , . TPO (TPO count) .

TPO Count TPO

Time Price Opportunity (TPO) . , TPO (Time), , (Price),

, (Opportunity) .

TPO (value area). , TPO (imbalance) ( ) (locals).


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, , , .

, local, , . , , , local, local.

, , , , , locals ., , , , locals .

Locals ( (off-floor), ). , , (floor broker) 100 , , $5 .Locals , , 100 $5.02. locals ( ) , .

, . , - locals ( , , ). , , locals (inventory) (too long). , locals .

, locals , - . , local . , , . , , , , . , locals () .

, , . , 20 $10 . , , . , . , , . () . , , $8, $12 $15. , , ., , .

(), . , , , , , . (Tails) (range extension) , , , (value area).

TPO (day-to-day) , .

TPO (point of control) ( , ), TPOs

. (Single print tails) (.. ) , , .

, (point of control) , , , , .

(price x time = value)( x = ).

( 3-1) TPO.

TPO ( ) (point of control) , (short)

(value). , TPO (point of control)

, (long) (value).


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3-1


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/, ., 32/24 32 TPOs 24 TPOs .

, (value area) . , TPO, .. (single-print rejections), , (value).

3-2 ( , 29.jan.1988)

( 3-2) January 29,1988. A-F .

29- , , (auction down). ,, , ( ) .

, , () , . (value area) .

TPO , , , , .


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A . A-F TPO 13/21, . , 13/21 TPO : , TPO (point of control) , , , , .

, (downside) . (pointof control) (value), , TPO, , . , TPO (value area)

(), , , (floortraders), locals, .

B ( 3-2) , TPO H 21/22.

, locals (tooshort) , (buy back) (shorts), . , G H, locals .

, , , . LTPO 9321/32 ( 32nds $1000), L (point of control) , TPO

30/47. (momentum) .

Initiative versus Responsive Activity ()

, , ( ) , . , (initiative) (responsive), (value area) .

, , .

:

Initiative Buying

Initiative Selling

Responsive Buying

Responsive Selling

Initiative Buying

, ,

(value area) .

Initiative Selling

, , (value area) . (strong conviction) .

Responsive ctivity ()

() . (value), (value).

( 3-3 3-4) .

( 3-3), (range extension) (buying tail) E, (responsive buying). . , .


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, , , . , , .

(buying tail) ., , . , , .

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. (3-3), , , . , , .

3-3


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( 3-4) : , , , .

3-4


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( ), , .

, , , .

(Range extension) (tails), (value area) , .

(buy) (sell) (value), ,

, (excess) . , , (), , , (value).

(value area) . , , .

, TPOs (value area) , , TPOs .

TPO, (value area) , , ,

.( 3-5 3-6) .


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3-5


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3-6*


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Trending versus Bracketed Markets ()

(), , , . , , , , . ,

, , 4. (trend - )

(bracket- ), .

Websters New Collegiate Dictionary :(a) , ...

(b) ; :

, . , ,

. , () (value). , , (

), . ( 1 2)

Crude Oil ( 3-7).

3-7 ( )


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( 3-8) , S&P 500(Points 12), (bracket).

Websters ( - bracket), :(a) ,

(b) .

, , . ,

, . (3-8) , S&P ( ) 2, (bracket), 2 6.

3-8 ( S&P500)


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Key ElementsA Brief Discussion -

(), () (value). , , (value) .

(trending market) , (reference points), (bracket) . , .

, , 20 30 . , . , - ( ), , . , (bracketedmarkets), , -, .

, ., ,

. - , , .

, ,

. ; . -

, . , ( ), . (), , , . , .

, , (reference points), , .., , , .

(bracketed market), , , . ,

(), , ., ()

. , .

Trending Markets

() , , , .

(value area). (value area) , , , .

(value area) , , , .

() , , (value) .

, , (value), . , , . , , , , . , , , , ( ). (value) ,

/, .


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Bracketed Markets ()

, () , ().

( ), . , , . , (bracketedmarket), .

(), , .

, , . , .

() , . , (bracketextreme), , , .

(break-out) , .

(price rotation) , . , (Rawley's car) ,

. : Series Magma8.9. , , , .

, . Magma , , - . , Rawley , ., , - . (salesman), , .

, , , (value).

(value), . ,

, , . , , . , , , , . , , , , , .

, , . , , .

(bracketed market) .

, (value). , , . , , , . , , . , , ().

() , , . , , , . , , , . , , . -

, , . ,

( ) . ,


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, , .

- , . , ,

(short-term bracketing activity) .

, , ().

() . , , 4.

The Two Big Questions

: (Profile structure), (daytypes), (other timeframe control), (initiative) (responsive activity), (trendingbracketed markets) , .

, .

, , , , . (), , , , .

, , , , .

, :

1. ?2. ?

, , . , .


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4

, . . , , . ,, .

, (Market Profile). (day) (longer timeframe) .

, .

Doing the Trade

" , , . , , ".David Hume

. , , , , , , .

, , . , , , , ., . , , , .

. , . , .

: - .

Section I: Day Timeframe Trading

Mike Singletary- Chicago Bears 1988-89. , .

, , , "" . , , , . Singletary , , , . , , , , , . , Singletary

, , .

, Mike Singletary , . . , , , , . , . , .

, , Singletary . , .

(day timeframe trader), Singletary, . ,

, . , (longer-term market direction), (value area- VA) (Opening Call) ( , ).


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, , , (opening type), (value) , (auction rotations). Mike Singletary, , , . , , .

, , .

Day Timeframe Directional Conviction

, , 3-. , ?, ,

? , (market confidence) (directional conviction).

, , .

, (, ), (), , .

, ,

(day's range). , ( ).

Opening Call -

( : ). ,

(floor trade) : " , ( ), , ?"{"If the opening exceeds or fails to make its opening call, can that also be considered recordable initiative or responsive activity, even though

the market never actually traded there?"} ( : ,

.), , , "". ( , ), , .

Opening calls , , 2 , . , , , , , .

, , , . , (trading pit). , , , (longer timeframe traders), (orders). , , .

, . ( ) , . , , (other timeframe).

() , (Opening Call) . , , , (tail) (Market Profile).

, () 87-19, 87-12, , , (hidden sellingtail). ,

(value area) ( ).


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The Open -

, , , Mike Singletary playbooks . (openingcall), , .

, , (initial balance), , . , , -

(one of the day's extremes), . , () .

(initial balance) (, ), , , . .

The Open as a Gauge of Market Conviction,

(opening call), , (market's directional conviction)

. (market conviction), , , () ( ), . , .

, , . , , . (day types), 2, , .

:

1. Open-Drive

2. Open-Test-Drive

3. Open-Rejection-Reverse

4. Open-Auction

Open-Drive-

- - (Open-Drive). -, , , . , . .

( 4-1), -(Open-Drive).


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4-1


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April 10, (value area) . , . (4-1), , 12 (tail) , (Double-DistributionBuying Trend

day). , , -(Open-Drive), .

- (Open-Drive), , , . ,

, . , , .

- (Open-Drive) , (Trend) (Normal Variation day). .

(. 4-1) . ( longs),

, - , (longs), . , , , .

- (Open-Drive),

., - (Open-Drive), . , (tail), , .

Open-Test-Drive --

-- (Open-Test-Drive) (Open-Drive), , . , (high low , bracket top bottom ..), , , .

, . (initial test), , , .

-- (Open-Test-Drive) , (Open-Drive).

(4-2) --(Open-Test-Drive) .


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4-2


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-- (Open-Test-Drive) , , .

( 4-2) , , ( ), April 3, 708. - , . , .

, , ,

(up auction) - , 708 , , ( ).

( , .. ), . --(Open-Test-Drive), , ().

, , , .

, , .

, April 10 ,

, . , , , . , .

-, .-, , ( value areas), . , -, 10- , . , , , .

7041/2

, . (break-out), ,

, , (follow-through).

(break-out) , , (longs) , () , ( , (value area) , .)

, .

, , , . , , . . , , , , .

--(Open-Test-Drive), (Open-

Drive), , .

, , (Normal Variation) (Trend). , . , ( Open-Drive), , .

, , .

, , , , , . , , , --(Open-Test-Drive), .

(Open-Drive) -- (Open-Test-Drive), () . , , , , .


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, , (Open-Rejection-Reverse) (Open-Auction), . , , .

Open-Rejection-Reverse --

-- (Open-Rejection-Reverse ) , , , .

, , , .

-- (Open-Rejection-Reverse ) , - (Open-Drive) (Open-Test-Drive). - , () .

, , , . , , , (Open-Drive), --(Open-Rejection-Reverse ).

(4-3) --(Open-Rejection-Reverse ). , Swiss franc (value area) ,

, , 0,6630 .

Z. 3 :

1. , , (two-sided), . (Trend) - .

2. (Normal) (Normal Variation).3. Y, , ,

, .


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4-3

(Open-Rejection-Reverse ) . , ( 4-3), Rejection-Reverse, Swiss Franc,

. , --(Open-Rejection-Reverse ).


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, . , , , , .

,, (Open-Rejection-Reverse) . , , , .

Open-Auction-

, - (Open-Auction) . . , , -(Open-Auction) , , .

- (Open-Auction), , , , -(Open-Auction), .

, (value area) , , , (nonconvictional).

, , , .

, (out-of-balance).

, (Open-Auction), (nonconvictional), , , .

- (Open-Auction), (Double-Distribution Trend days). , (Open-Auction).

Open-Auction in Range-

, , , . , (Open-Auction), .

, (market auctions) , , .

, .

(4-4) (Open-Auction in Range).(Open-Auction in range), (Nontrend),

(Normal) (Neutral) . , , , , .

(Treasury bond) June 30th ( 4-4), (value area) June 29th's, . , (), .

, , ,

, , .(Open-Auction ) , , , (big day), .

(Open-Auction in range), . , (valuearea), () (value area extremes). , (Nontrend) , , .

Open-Auction Out Of Range-

, , , .

, , , , ., ( ), ,

, . March 22 ( 4-5), (Treasury bond),


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(value area) . (Open-Auction in range), ( 4-4), 3- , (4-5) () :

4-3


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4-4


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4-5


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, , , (Open-Auction outside of range) , big day, (Open-Auction within value), , .

, March 22 (Selling Trendday), June 30, (Normal Variation day). , .

Summary

4 , . , , . , , , , .

, , , , (Market Profile).

(4-6), 4- , .

4-6


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Opening's Relationship to Previous Day

, , .

, , , . .

, , , :

(1) (2) .

.

(value area) , () , .

, , . , ( ). , . , (, , ) , , .

(value area) , ,, .

(opening/previous dayrelationships), .

:

Open Within Value

Acceptance*

(value) ( TPOs ), , . . . , . (value area) , , .

, , (within value), , . , , . , () (),

, .

, , , , , (buying tail), , . , , , , .

15 , 15 (), ( ).

, , , , .


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, :

1. .

2. ( ), , , . , , .

3. , 10% , , , .

4. , , , .

( 4-7) , (value area) .

, , , .

,

, (auction rotations) , .(, , , .) .

, () . , , ,, ( ).

( 4-7) . , , , (period selling tail), (day's high).

, , . , (top of the selling tail).

, , .

( 4-7), , . ( D), , , . , , , .


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4-7


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.( 4-8) S&P September 23,1988.

(within value), , S&P (overnight). , , .

, (value area) , , . , 22-,

. , , S&P , , (Open-Drive) .

, , ( TPO prints), , , (overlapping) . , , , , . , , , 22-.

, , (buying tail), (longs) .

, 270.30. 22- (285 points), , , 23-(high on the 23rd) 273.15. ( ). (longs), D, E F .


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4-8


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Rejection (Break-out)()

(value area) ( TPOs, ), . (Break-out) , , (4-9).

4-9


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, ( value area) , . ( ), , . , , (4-10).

, , , , . ,

. , , .

4-10


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Acceptance

, , , , , .

, .

, , , ( 4-11).

, , , , , , .

( 2- ), , (1- ), .

, , , , , .

, Openings Within Value, . , ,

, .


, , . , , ( ), (4-12).


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4-11


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4-12


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Open Outside of Range

Acceptance -

, , , .

, :1) () ;

2) ;

(4-13) . , , ,

().

4-13


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1- , (), (4-13).

, , . , .

, ., , .

, , , , . , ,

. , .

, , .


, , , , .

, , , , . , .

( 4-14), , .

4-14


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Summary

, , , .

, , ., , . , , , , (opening type) / (initiative/responsive activity), .

, , , . April 13,1989, , .

April 13,1989

Thursday, April 13th, , (RetailSales) 7:30. , 5 : Merchandise Trade, Producer Price Index, Business Inventories, Capacity Utilization Industrial Production. , , . , .

, , , , IMM. , , . , , , , April 13.

, 6 : crude oil, S&P 500, gold, Japanese yen,soybeans Treasury bonds.

Crude Oil

( 4-15) Crude Oil . , , gap ( ). , ,

. , , , , . , (initial balance) ( 4-15), (Double Distribution Trend day) .

, Crude Oil , (DoubleDistribution Trend day), , . , (big day to the upside). , , , . , - .

, . ,

(shorts), , , , , .


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4-15


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S&P 500

(4-16), , 12-, ( ), , outside day, , . , , . C D, , , . , , E, F , G,

, (Double Distribution Selling Trend day).4 , . 13-,

, , , , , . , , , . , , , , , .

4-16


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Gold

Gold13-, . (4-17), , (big day on the upside). , Z, , (double TPO prints) 12-, . Z , (Open-Drive), Y , 13-, Y 12-. 13-

392.60 397.20- 10%. , (longs) Z, .

393.00 Gold , . - Z A, , , . , , , , - 12-, , , .

4-17


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Japanese Yen

Japanese Yen 13-, ( ) . ( 4-18), Yen 12-. Z , . Z, (initial balance) 13-, . , ,, Yen , .

12-( 1 ), . , Z , .

4-18


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Soybeans

Soybeans 13-, , , 12-. ( 4-19), , D,Soybeans , , E. , , , 12-, . 12-, D , , 723 729. , ,

G H, . (Shorts), , , ( ), .

4-19


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Treasury Bonds

Treasury Bonds Z ( 4-20*). , 2 (double TPO prints), 12-, , 12-, 2 . . , , 12-, .

4-20*


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Summary

: (opening call), . , , . , , .

Day Timeframe Auction Rotations

, , , ( ), . , , (opening calls), , . , , , .

, , 1- , . , (market's auctionrotations), .

, ,

. , , , . , , .

(, ) , -(one-timeframe market).

(one-timeframe market), (Trend day). , (Nontrend day), (one-timeframe market). (Nontrend day), (local).

, , , , . , , , -(two-timeframe market).

(two-timeframe market) , (Normal),

(NormalVariation), (Neutral days). (two-timeframe market), , , , , ( ).

, (off-floor trading), .

, , -, , ( ), , -, .

, , , . , (auction rotations) , .

, , .


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Two-timeframe Markets

(Two-timeframe Markets), ( ) . , , .

, (bracket). , ( 4-21), (Two-timeframe Markets).

(Two-timeframe Markets), (

), , . (4-21)

, ( , D ..)

.

4-21


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One-Timeframe Markets

, , , () . . , ( ) (One-Timeframe Markets).

(One-Timeframe Markets) , .

, (Trend day Profile), ( 4-22),

, (one-timeframe market). (Trend days),

, , , . (4-22), , (Z, C, D, F, G, H I), , (A, B, E). (One-timeframe seller), , , 2- . .

4-22


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Using Auction Rotations to Evaluate Other Timeframe Control

, , (half-hourauctions), : (market structure) (market time).

.

Structure

, , , (TPO count), (tails), (range extension), (initiative) (responsive activity).

, , , (marker's half-hour auctions), (offspring-tails) (range extension).

, , . , (timeframe transition) (Time).

Half-hour Auctions

, , , . (half-hour auctions) (4-22).

( ) , , , , () . , , , , (tails) (range extension).

, , , , , , .

(Tails) (range extension) ,

, (timeframe transition), , . , Timeframe Transition, .

Extremes

, () .

, , , (value). , , , .

, , .

, .

, , . , , , , .

Range Extension

, , /.

(Multiple-period) , .

, . , ,

, ,


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. , , , .

, , , , (auction rotations) (tails).

Time

, ,

. , ,

, . , ,

. , , . , , . , .

, , . , (two-sided trade), , .

, , . ,

, . , , ,

. ,

(). , .

, . , , , , , .

, , , .

, , , , .

Identifying Timeframe Transition

(one-timeframe) (two-timeframe), , , , .

, , , ( ), - , , , , .

, , , , .

( floor), , (off-floor trader). , (Market Profile), -(listening to the floor).

, (timeframetransitions), . (off-floor trader) (floor traders), , . (pit), .


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-, , :

1. ; (one-timeframe) (two-timeframe) ;: (one timeframe) (Normal days) (two

timeframe).

2.(One-timeframe) (two-timeframe) .

: ( , ..) , (two-timeframe) .

3.(Two-timeframe) (one-timeframe) .: , , ,

, , .

4. (One-timeframe) (one-timeframe) .

: .

, , , .

, , , (4-23), , (Swiss franc onOctober 12,1987).

December Swiss Franc, October 12, 1987

, (one-timeframe buying), (one-timeframe selling), (one-timeframebuying).

" " (running Profile)

. , .

, (4-23), , Swiss franc on October 12.

Y-E: One-timeframe Buying

(One-timeframe buying) Y E. , ( ) . , B D. , .

E: Time

. , ., , , .

Y-F: Auction Test

F, (.6710) . , , ("test" of buyer control).

, . , , , , , , , ,

. , ,

.


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, : , , (one-timeframe), .

G: Transition Confirmation

"Double prints" (two time period TPO prints) (one-timeframe auction), , (one-timeframe) .

(Double TPO prints) , , ,

, . "F-G"double prints, (.6702)(double prints) (.6710), , , . , , (two-timeframe), (one-timeframe selling). , .

, , , , .

"D-E" (double TPO print) , , . , , , , .

E-H: One-timeframe Selling

(running Profile), , (one-timeframe) , (one-timeframe selling), H.

H: Auction Test

H, G, , . H, (buying tail), , .

I: Transition Confirmation

(Double "H-I" prints) .6704, (timeframe transition), .

H-J: One-timeframe Buying

"H-I", (double "HI" period prints), . , (.6716 "D-E") , , , (nonconviction seller).

Summary

(Two-timeframe trade) (transition) (F H periods); ,

, .


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4-23


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Auction Failures

"follow-through" ( ) (trends), (break-outs), (initiative activity), . , "follow-through" : , ?

"follow-through" , , , , . "follow-through" - , . "follow-through" , , ,

. , "follow-through" ( ), ,

"follow-through" ( ) .

(), :

1. , ;

2. , .

,

. ().

: /, /, /, , , / .

, ( ), .

, , ( ), ,, , .

(long-term bracket extreme), , .

. , , , .

, , (market to rally).

, , , , , .

, ,

. (longer-term support levels) (), ( ) , .

, , ( ), .

(4-24) .April 3, 1989, 708.

(), 4 , (value). ( 4-25), April 10th, , . 710 ,

3-(708). , , .


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:

1. , ( , local) ;

2. (), (, ).

April 10, ,

. (Double Distribution Buying Trend) ., () 708, , .

() (shortertimeframe), , , ( longer timeframe).

, , , .

( 4-26) , Treasury bond.

May 16, 1989, (90.22) Y, , (follow through), . , , (no sell

stops) . , , . . , Treasury bond , .

, , , .

, .


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4-24


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4-25


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104

4-26


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Excess

, , , , .

, (value), , , , (two-sided trade) .

, 1., ,

() .

, 1000 , 50 . , , .

, , , 55 - . , 60 , , 800 , .

, 55 , - . , (), , ,

. () 5 , 60 55 .

, , , , , . , (), .

, , .

, , , , .

Signs of Excess

, (), , , . , , , , . ,, .

, (4-27). ( 4-27), ,

. ,

, . , , , , .

, , , . (Longer term excess)

Long-Term Trading. , , .

, , . (prints), (Double Distribution Trend day),

. , , . (gap), , , , .

, , .

, , , . , , , (),

.


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4-27


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The Rotation Factor

Day Timeframe Auction Rotations, : ?

, , , () - (two Big Questions).

, , , . , ,

, . (Rotation Factor).

, , , ( )., , .

(Rotation Factor) . , ( ), .

( 4-28), , .

, ,

. , ,

() +1. , , ()-1.

, , , +1. () , -1.

, ( ), , 0.

, , , , .

( 4-29), , (Rotation Factor) Treasury Bonds. +3, . +6, .

, , (Rotation Factor), - , .

, , .

, , . , , , .


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4-28


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109

4-29


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TPO TradingTPO

TPO , .

, (TPO Trading), , local .

, , TPO ( TPO, 3

).

, TPO 16/25 , (25), POC( ), (16), POC.

, POC , (value) . , .

TPO , (two-timeframe), . , (two-timeframe) , () .

(one-timeframe), , , .

TPO , , , , ( ). TPO ( ), (two-timeframe), .

, (two-timeframe), (one-timeframe). , , , . , . , , , .

, , , (one-timeframe) .

, ( ),

(intraday transition). , , , ,

(municiple bond), , , TPO , , , .

(Municiple bonds) (off-floor). local , TPO .

(Treasury Bonds), , ( local) . TPO Crude Oil, Gold, (grains) , ( off-floor).

TPO TPO. ,

, . , , , TPO . ( 4-31 4-35), (Treasury Bonds), , .


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9:30 AM(4-30): TPOs 13/16. 99-00 98-31, ,

.( , ). , ( , ). , 99-00. , 98-31. , .

4-30


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10:00 AM(4-31): D 99-00, - 99-08 ( , ). TPO , . , 99-00, , TPOs . .

4-31


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10:30 AM ( 4-32): . TPOs 16/24 . , , . () , .

, . F (99-03) , TPOs . (long), (98-29),

, . F G (99-03), , . , (longs) , .

4-32


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(4-33): F, G H , (17/38), . (Longs), H, , , TPOs. , .

, , I (99-04), 99-05. , TPO . ( ), .

. , . , .

4-33


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2:00 PM ( 4-34): (Treasury bonds) 99-05 , . () TPOs . , - TPOs . L .

4-34


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The Close

, . , . , , , .

, , . ,

, , .-,

.-, ,

, ., ,

, - .

, . , ( Treasury bonds), , (, ), , .

, (open call) , , , .

( 4-35) sugar market, , .

May 31, (sugar) . , , , , 31- . , sugar , J. sugar , , (bullish close) , , .

, , (May 31 June 1). , . , .


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4-35


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Day Timeframe Visualization and Pattern Recognition ()

, , 59 ( ). , . , . , , . ,

, 59 , , . , 57 , . , ? 57 , , .

, , , . ,, . , (). , , , .

, , , , , , .

, , (Market Profile), , . , , . , - (Open-Drive) , (), , . , - (Open-Auction) (value), , . .

. (opening call) , . ,

(), , . (), .

.

, : (short covering rallies), (long liquidation breaks), (ledges).

Short Covering Rallies

, ,

- short covering(). , (short positions), , . , , , .

(Short covering) ( ) . , (too short).

, , , , () .

:1) locals , (too

short);

2) ; 3) , .

, , , , , .


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, , , , .

, , , , .

, , , , (shorts)

(longs). , , , .

( 4-36), , ( ), . ( ), , , .

, , .

, . - , .

, , ,

. , ( ), ., , , ,

. , .( 4-37) . ,

. ( 4-38) . (4-38), S&P. , ,

, , B-H , .

, , , . , .

(4-37). ( 4-37), , ( 4-38), .

( 4-38) . , , , , .

F , , ().

, ( 4-38) , . , S&P (one-timeframe selling), ( , , ).


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4-36


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4-37


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122

4-38


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Long liquidation Breaks

(long liquidation break).

, , , . - locals, (too long)( ), , , , .

, , (old long

positions), (shorts). , , ,

(longs), ( , , () , (follow-through)) .

("sale") . () b (

).(4-39) (long liquidation break). S&P , .

( long liquidation break), - (one-timeframe buying), H.

, , .

, I S&P ., , (follow-through), . I , , .

, , .

(minute-to minute) , . , .

Summary of Short Covering and Long Liquidation

, b, , .

, . , , , , .

:

1) ;

2) ;

3) ;

4) , .


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124

4-39


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Ledges

, . , , -

. , . , .

. , - , . ,

, ., ,

. ,

, . .

, . (follow-through), .

, , , ., :

1) , , ;2) , , .

(4-40). , , ,

. (value), ,

. (break-out) , , , .

, , .

, (offthe ledge), ( - ..)

( 4-40), , (shorts) 4472,

4476 H.

Summary

, , (), . , . , . , , (short covering), (long liquidation) (ledge).

. , , , .


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126

4-40


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127

The Liquidity Data Bank

TPOs. TPOs , , , (), .

Liquidity Data Bank (LDB), , , , .

, LDB , :1) local floor traders ,2) commercial clearing members ,3) , (orders) 4) , .

, / (price/volume) , , , .

LDB, . LDB. , , , .

The Anatomy of the LDB

( 4-41) Treasury bonds April 28,1989. :

1. Trade Price. , .

2. Volume. . , .

3. % Vol. , % .

4. % Cti."Customer Trade Indicators" .

Cti ( ), .

Cti1 local floor ; Cti2 commercial clearing members ;Cti3 , ; Cti4 , .

5. The Profile Structure

6. Value Area, 70%

7. Value Area Participation , Cti.

8. Range Participation Cti

9. Total Volume ,

General Uses of the LDB

, , ., ,, , ,

. , , , . , .


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LDB , . , LDB , ( ), .

LDB, :

1. Total Volume

2. The Value Area

3. Dispersion of Volume4. Cti Figures

5. Acceptance of Value Outside the Value Area

6. High-Volume Concentrations

7. Top-5 versus Bottom-5 Tick Analysis

8. Trend Tests

Total Volume

LDB , .

(volume) (value area). , .

(), , , , . , , .

, . , , .

, , , , , .

, , .

(day-to-day), . 2 , (Long-Term

Trading).

The Value Area

, , , LDB, , 70% .

LDB , , TPOs. ( , 1).

, , . , , .

, ,

. , 2.

Dispersion of Volume

, . , , . , .

, April 28,1989.


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Methodology

( 4-41), , , .

1. ( ): 90-06.2. "% Vol" ( ). 3. ( ). 4. "% Vol" 2 .

( 4-41) , 34% (90-06), , 38,5% . , (bondmarket) , . , .

( ), , , . , , ., , 3

The TPO Count.

-

TPO, , (two-timeframe), , , , . , , ,

, .


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4-41


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Cti FiguresCti

, , , .

Cti , , . Treasury bonds,, Cti1(locals) 55 60.

Cti1 , local . locals. , - . , Cti1 / Cti2, Cti3, Cti4

, . , . Cti , , .

Acceptance of Value Outside the Value Area

( ) , .

, , . , , , ,

. ( 4-42) , , .

L May 22, 6 . , TPOs (49/33 ). , L . , , - , TPOs , , ( TPO).

LDB . , . L May 22, "% of total" 89-07 89-17,

. , , L . , L . ,

Cti2 ( ) ( ). , Treasury bonds . , - Cti2 . , .

, , , . Treasury bonds , .


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4-42


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High Volume Concentrations

. , , , , .

, , /, . , ("High- and Low-Volume Areas","The Liquidity Data Bank").

Top Five versus Bottom Five 5 5

LDB, , , 5 "% of Total" , 5 "% of Total" , .

, , , .

( 4-43), 5 , 5 , , . (Treasury bonds) , .

5 , , .

, ( , ).

4-43


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Trend Tests

LDB , .

, "Average High Volume" "Opening-Range Volume", ( 4-44).

Average High Volume

, 5 "% of Total" , , . , , .

( 4-44), 5 (*).

Opening Range Volume

"% of Total" , . , .

, (). , , "opening-rangevolume" "high volume average". () , .

Summary

(Liquidity Data Bank), , , . , LDB.

, Cti2 (commercial) . LDB, (CBOT Market Profile Manual 2). 2.


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135

4-44


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Evaluating Commercial Activity

(commercial) , , .

, , , ( , ). , , , (value).

CBOT Liquidity Data Bank, (commercial)

. , (commercial), , , , , . , (commercial) .

Definition

"commercial clearing member" .

, , , .. . , , , , ,

(). , (commercial clearing members) .,

(), , .

, , , . LDB, , .

Commercial Logic

,

, , . , , , .

? ()

.

Expected Response

, , , , () .

, , . , (), .

, .

LDB , ( 4-45). , , , "Cti2%." , , .

, , , . ( Treasury bonds, 12-14% , ), 16.3Cti2% 89-23 .

, Cti2% 17.7, 18.9 17.9 88-16, 88-21, 88-23 , .

, ( 4-45), ,

. , , (Neutral, NormalNormalVariation) .


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4-45


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Unexpected Response

, .

, , , . , .

, . ,

"coffee extravaganza." , , - . (), .

(), , .

( 4-46), , Treasury bond.

December 15, (two-timeframe), , , , . , D, , .

, 26.6 Cti2%, 84-22. .

Cti2% ( 4-46), , , , (84-22, 85-00 85-22). , , .

, . , , , , , , . , , .

, , , . , .


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4-46


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No Response

, (value), . ,

, . .

-, LDB , , , , .

, , , . , , , . , Cti2 ,, .

-, , Cti2% . , , , . , , . , , - . , , , .

( 4-47) Treasury bonds.

, (11.7%, 4-47), October 1, 1987, , (14.6%).

Cti% , . , , ( , ).

, Treasury bonds (Multiple Distribution Buying Trend).

October 1 2 ( 4-50).


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141

4-47


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Identifying the Significance of Price

, .

, , , .

:

1. The average daily Cti2%Cti2% .

2. Average Cti2% above the value areaCti2% .

3. Average Cti2% within the value areaCti2% .

4. Average Cti2% below the value areaCti2% .

, , , , , .

LDB , ( 4-48), , Cti2%.

4-48


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Average Daily Cti2% (Total) ()

Cti2% (16.2%) LDB, , "Volume for T-Bond (CBOT) Day" (. Point 1 4-48).

, (commercial clearing members).

Average Cti2% above the Value Area

Cti2% . Cti2% (total volume) . , , .

(Point 2 4-48). 89-23 28930. Cti2% 89-23 12.6%, 3645, . .

, Cti2 , Cti2%(average Cti2%) .

.

-


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Average Cti2% Within the Value Area

LDB . Point 34-48.

Average Cti2% Below the Value Area

Cti2% , Cti2% , 2 .

Cti2% , ,

, . , , .

, Treasury bond.( 4-49) , April 25, LDB

. Cti2% 18.7%, Cti2% 16.0%, Cti2% 12.9%. , , - , . , .

, .

(commercial), , ., , , .

, ( ), , .

, , , , , .


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4-49


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Cti2% in ActionCti2%

Cti2% , 10 , . , .

, , , .

December (Treasury Bond), September 28 October 9, 1987, ( 4-50).

September 28

September 28, : .

(30.2% 82-28) , , . , , , , .

, , , .

September 29

. Cti2% , Cti2% 82-09(29.4%) , , .

- .

September 30

, (20.7%) 81-23, , , .

, , . .

,

, , , . , .

October 1

11.8%, . .

, , .

October 2 .

October 2

(Buying Trend day).

(18.6%), 81-14(22.2%), 81-17(28.9%), 81-30(20.7%) 82-03(19.1%). , , , . , , , .

October 5

5 . , Cti2% 81-24 (25.5%). , Treasury bonds 81-24,, . ( ), , .


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October 6

(12.0%) (14.6%) , . , , , .

October 7

(Buying Trend day) (Auction Failure) . October 5

2-, . ( 82-14) .

October 8

(29.6%). Cti2% , .

, , , .

October 9

October 9.

, , . Treasury bonds (full point) .


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4-50 1


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4-50 2


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LDB Summary

, (Liquidity DataBank), :

1. LDB . , ( ).

2. LDB , . . LDB , , , .

High- and Low-Volume Areas

Day Timeframe Trading, , . , .

, , .

, ,

.

High-Volume Areas

(High-volume) , , .

, , , , .

, , .

, (), , , .

, , ,

(value). ,

() . , (), , .

, , () .

, , , , , .

, , (Treasury bonds) , , .

, long,

., , long,

, , , , .

Identifying High-Volume Levels

, :

The Liquidity Data Bank (LDB)

( 4-51) LDB,

( ). ,

"%Vol". , .


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( 4-51), , 89-05 89-08, , 25-.

, 9.7% 89-08, 10.4% 89-07, . 40.3% , , , ( ).

The Market Profile Graphic

, LDB , .

, , TPO (high TPO prices), . LDB. , .

Tick Volume

(quote) , (tick-volume), - , , .

, , , .

, 2000 , . , (, ), - (local), , , .

, TPO , , ( 4-52). , , .


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4-51


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4-52


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High-Volume Examples

Example 1: Up Auction; Probe Down Into High-Volume Area.

; .

October, (Treasury bonds) .

( 4-53), October 25 (high-volume), 89-05 89-08. 26-, . , , . 25-.

, , ,, , , 25-.

, .

, , - , , . .

, , .

:1) , , 2)

. ,

, () . .

October 26 , . ,

, .

89-10, , , .


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4-53


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Example 2: Down Auction; Probe Up into High-Volume Area

; .

( 4-54) (Treasury bonds) .

September 14 (Normal Variation selling day), - , . ,

.

( 4-54) September 14and 15, %Vol .14-, , 88-20 88-25, 53.7% . September 15, 14-. , , , .

, :

1. , . () ,

. (shorts) , H.2. , , ,

, (shorts) .

(A B Treasury bonds), ( - ),, , ( ).

, , 88-26, , , . September 15, (Double Distribution Selling Trend), .


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157

4-54


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Low-Volume Areas

, ., , ,

. , ,

: , TPO, (gaps, single TPO prints, and tails) ( ).

() , , . , , .

, (single TPO prints), (Double Distribution SellingTrend day), , .

(Shorts), (single-print) , . , , (Shorts) .

, , , . .

, .

. , , , . , .

, , . , .

Identifying Low-Volume Areas

, .

"%Vol" LDB, , , , TPO , . , LDB September 15, ( 4-55).

, , 88-2588-26 88-12 88-16. 88-26. , .

12.6% , , , , , .

:1) (), ,

, 2) ,

TPO.


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159

4-55


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Low-Volume Examples

Example 1: Low Volum

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