Note
If you use the instruments with a value from several hundred to several thousand.
Use larger Box Size.
Otherwise the calculation may take some time
To quote Warren Buffett and a "Price is what you pay. Value is what you get."
Market Profile can be helpful in determining fair value for each trading period.
Market Profile provides a completely different view on the market.
In following days I'll add a few more useful features and offer a detailed explanation.
To have learned this concept we need at least a week.
Every day the market again, establishes a value area, the fair value of securities.
It represents a balance (equilibrium) point where an equal number of buyers and sellers.
Prices never remain within this region, constantly is in motion.
Market Profile records this activity for traders to interpret.
Market Profile is based on the normal distribution curve, 70% of the value is within one standard deviation.
Time Price Opportunities (TPOs), are represented by letters and numbers.
Each letter represents one trading period.
upper case letters from A to Z, then lower case from a to z and and numbers from 1to 9,
A represents the first trading period.
POC = Point of Control
Price at which most TPO segments appear on the Market Profile char.
Price with the highest activity.
VA = Value Area (I must add this functionality)
The price range that contains 70% of the TPO profile.
Value Area is the price that was accepted by most market participants.
TPO = Time Price Opportunity
Letters (TPO) represents the price at the time at which it traded.
A, B, C, D, E, F, G, H, I, J, K, L, M, N - each letter represents one trading period.
Selling Tail - Minimum of 2 TPO's at the top of the profile.
Buying Tail - Minimum of 2 TPO's at the bottom of the profile
Every time when the price falls below fair market value for the considered period,
occurs opportunity to open the Long position and vice versa.
The decision on entry into the position should not be made solely based on observation of market profile.
Market Profile.lua- (5.83 KiB) Downloaded 6374 times
- Market Profile New.lua
- (8.09 KiB) Downloaded 1368 times
- VPOC.lua
- (4.55 KiB) Downloaded 1313 times
Make sure to re-install VPOC for use with MTF MCP POC View.
- MTF MCP POC View.lua
- (19.62 KiB) Downloaded 369 times
MT4/MQ4 version of VPOC.lua
viewtopic.php?f=38&t=66947
Beautiful work, Apprentice!