What Critical Information Does Volume Profile Tell You as a Trader? Most people who talk about volume profile and/or market profile jump too quickly into the typical jargon - immediately firing off terms like opening range, initial balance, point of control, value area highs/lows, day types, opening types, and more. While these terms/concepts are important to understand in order to effectively trade based on volume profile analysis, it skips right over the critical explanation of … [Read more...]
What is Auction Market Theory – Trading Value vs. Price
What is Auction Market Theory - Trading With Auction Market Theory as a Framework: Auction market theory is a framework based in the notion that financial markets are giant auction mechanisms. They exist to continuously facilitate 2-way trade between buyers and sellers. When buyers are more aggressive than sellers - price goes up. When sellers are more aggressive than buyers - price goes down. When they're relatively even, price is stable. When you look at a chart, this helps … [Read more...]
Molding Your Market Framework – How Do You View Markets?
Develop a Strong Trading Methodology Based on Market Dynamics and Structure: Throughout this site, I often talk about expected value, asymmetric risk-reward, the law of large numbers, accurately tracking trades, and acting like the casino - and these are all core concepts to understand and apply when it comes to your market framework. But these concepts - while vital - don't explain market dynamics and structure. In other words, what moves markets? Why does price move from one area … [Read more...]
