When the market comes off a balanced profile on a normal day, with a range extension that fails, there are enough clues for the market profile student that the previous range would be tested and the longer time frame participant is trying to exhibit control.
Viren commented in the comments as early as 10.00 in the morning that the range of the past two sessions would break.For the rest of the day, it was only a matter of which side the break would come.
Since we had a balanced profile the previous day, the market had not tipped it's hand hence it was necessary to watch the previous days values especially the point of control, to see buyer/ seller influence.
Accordingly we lay out two possibilities an auction above POC and an auction below POC, based on the info the market was providing.
As can be seen from the ovals, the market auctioned above POC in the first half and sustained below POC in the second.Then it was just a matter of time before the levels of 5374 and 5355 were met, considering that we knew early on that it was going to be a wider range day.
For tomorrow, notice the POC of today's profile has not moved down a lot from the previous POC, hence we can expect a move back to it in the first session.
Watch value areas at 5363-5382-5401 ( volume profile)
and listen to the message of the market.
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I will be out in meetings tomorrow and may not be able to post. Have a great trading day.
Posts
15 comments:
Well Shai, your views will be missed for sure. Just an update on Nifty OI from End of day yesterday
5400CE: 4.6L calls added - OI at 85L
5400PE: 3.4L puts added - OI at 46L
5400 is still the level to beat because of 2X calls vs puts
Not much call writing or put covering seen at 5300. So 5300 strong support remains.
5500CE: 5L calls covered. OI now 98L
Good Morning Shai
Dear Shai,
I downloaded the AFL code of MP but unable to get the style of yours. I tried a lot. I am not a tech savy. May I request you to send the AFL code that you are using to send it to my e-mail id as an attachment please. My e-mail id is opgveer@gmail.com. That will be of great help. Thanking once again.
Regards,
Veer
Hi Shai,
I am also looking for AFL code for Amibroker to get chart like yours. Please forward to mail id <keerthi405@gmail.com
Thanks in advance
Bose
@veer & Chandra
Try this one out, this is almost like the one which is used by Shai:
http://www.blog.stockmaniacs.net/search/label/Market%20Profile
Dear RM,
Thanks for the link. But I am getting error like this:
Error 30
Syntax Error
Use edit Formula to correct error
Regards,
Veer
Hi Folks ...... TOday strategy should be buy Bank Nifty on declines and short Nifty on bounces.....at the end of day a decent profits.......
@Veer
Indrajeet(stockmaniac.net) has loaded the file here too - I have downloaded this one and it works:
http://www.mediafire.com/?jhnz2wqynyy
Dear RM,
Thank you very much.The second link works.
Thanking once again,
Regards,
Veer
Hi Shai,
Thanks for your response & support. For me too having error. Ami version 5.25 beta.
Bose
Thanks RM
Missing shai for his comments of BN really not a single trade in BN
RM, Shai (in case you read it EOD) & MP experts,
After witnessing the MP based trades here, I feel like I am currently working with "poor tools". I have Quotetracker for getting intraday/EOD quotes and it works only for cash market and not for FnO.
I trade mostly in FnO and some stocks in cash market.
I am planning to upgrade to a MP setup. I will work only EOD for analysis as I am reasonably busy in office during the day. Also I can't access any Java based tool/data feed in office because of Firewall.
I am looking at the following:
1. Amibroker - for charting
2. Market data provider - Intraday 2-min/5-min charts backfilled at EOD
Any other recommendations?
@Girish Desai
I am learning MP with amibroker and live data from investbulls.com, the data is updated every 10 seconds and includes futures of all Nifty stocks and indices. At my level of learning I find this set-up quite satisfactory.
regards.
Thanks RM!
Will check investbulls.com option too.
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