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Details About Auction Market Theory
In this article I would like to explain a very powerful concept, auction market theory.
I am very supportive of developing some kind of market context and understand you can make profit. However, there are some risks.
So this article answers the theoretical question about what the auction market is.
I have always questioned technical analysis methods and trading strategies that do not fully explain why the market behaves like this.
Pattern trading, which is based on repeatable candlestick patterns, doesn't seem like a viable way to trade in the market.
While these methods can be effective, I have always believed that most of these methods are not sustainable in the long term. Market conditions change and different markets operate in different ways. This rarely happens with a shoe. I don't think the classical technical analysis model doesn't work. However, I think it is important for traders to evolve by having a solid and contextual understanding of why these patterns evolve and in what context they develop.
So I said "Aha!" After learning the theory of the auction market, I find the ...
... theory is surprisingly simple. But simplicity is all wonderful concept beauty that comes with danger of market behavior.
There are more complex ways to develop theory into a trading strategy. One of the most popular methods is to use market profiles. But for now, I want to talk about theory.
A chart of market profiles showing prices on a vertical scale (y axis). The sets are displayed on horizontal scale (x axis) and dots using letters and color combinations. The pricing is fairly straightforward, but the volume and timing segments are a bit complicated.
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What Market profile charts says about market
Market profile charts show prices in the same way as other intraday charts, with the price scale on the right side of the chart.
Volume on the market profile chart is displayed as a horizontal chart with the longest horizontal line showing the largest trade volumes. This is also known as the check price because it is the most dominant price in the market.
Use text and colors for the duration of the market profile chart. Each letter represents a unit of time at which that letter is used (for example, 10 minutes or 50 minutes).
Colored squares are available for a 15-minute chart. Each square represents a 15 minute transaction. Traders can easily see recent trading prices if they know which color is used.
Market profiles, unlike any other in the market, are powerful analytical tools. Market profiles give traders a clear picture of the price movements in the market. It opens up a vast trading opportunity for traders who can effectively understand and apply opportunities that don't appear on other chart types.
The market profile gives traders what Dr. Kepler calls an "X-ray vision" in the market. The valuable data and information provided by the profile are only available once to exchange traders and market makers. New technologies currently keep this important information within the reach of individual traders. Learn how to use this valuable information to deliver incredible trading benefits for individual traders.
A bit more about market profile trading strategy
Market profiles allow individual traders to view real-time market performance. Traders can see exactly where prices are accepted and where they are actually rejected by the market. The market profile is a powerful yet simple tool that helps traders capture high-probability trades and make the best trading management decisions. The real-time information it provides makes it easier for winners to achieve maximum victory and reduces losers quickly. Trading according to Market profile trading strategies is best known as chart-based trading. The market profile is a day chart method (vertical price, time / horizontal action). Market profiles allow traders to follow the market's movement as it happens, and they can learn to quickly and easily identify checkpoints, areas of market value and extreme prices. on the market. Market profiles allow traders to track volume growth and spot volume growth. This allows traders to focus on market trends. Dr. Kepler has developed a unique strategy for tracking day value trends in the market. A market profile chart can be used as a complete trading system or as part of a larger trading system. In any case, charts of market profiles are usually based on support and resistance prices (if the market is unable to support low prices or against high prices), and how prices interact with checkpoints will be delivered. One key difference between market profiler is the idea of "fair" and "unfair" prices. They consider prices in the value zone (the range where most volume is taken) as fair and prices above and below the value zone as unfair. As with all trading instruments and indicators, there is no substitute for a solid strategy by averaging and holding in which the reward / risk ratio is in your favor.
The Vtrender Trading room specializes in Nifty and Bank Nifty future. We have charts Of Market Profile and Order Flow Charts + Live analysis + Live commentary + live trades.for more visits:https://vtrender.com/
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