The Market Profile Research we use is based on static and dynamic time frames.
The development of this was done using the TradeStation Charting Package.
A stand-alone market profile charting package is currently in development and nearing completion.
The market analysis comes from an experienced trader and analyst who developed these systems.
Also including in them are...
Price Compression Levels
Floating Pivots
Volume Tracker
Time Cycles
Price Map
By using Price Map trader can determine and forecast in advance support/resistances areas displayed by two simple colored in red and blue, of high/low volume areas.
The Price Map algorithm tracks all positive and negative volumes of the recent past. The user can and will define how long back in recent history he/she wants Price Map to look into. All this done instantaneously and requires no special training. Multiple Price Maps can be place on single chart analyzing history individually for market actions. Each Price Map will display exact market activity map for specific historic time selected by user. This feature will deliver to trader obvious edge having knowledge which price levels are important, and why, who took action in the market at given levels; buyers or sells, institutions or retailers.
Price Map can be run as dynamic as well as in static mode. Price Map can be displayed from right to left, as well as from left to right.
High probability estimated applications using Price Map:
"Price Map's "Red" value Area is the market's best estimate of value for a selected analyzed historic time frame.
"The shape(s) of the "Red" Value zone(s) distribution is the picture of demand for a selected analyzed historic time frame.
"Non Value "Blue" zones identify a lack of value, "Hole".
We introducing four basic strategies with Price Map - VT analytical tools:
1. Value zone Distribution Extensions
2. Extended Value zone ranges
3. Double value zones - peaks and ranges
4. Non Value zone trades - Holes
1. Value zone Distribution Extensions, The entry point is defined after "Red" zone is breached and extended by "Blue" color prints. The typical Long Set up would be when price will trade above recent "Red" zone (value area), and after break out price would come back and retest the "Red" zone's top range, peak value point, or bottom range. All these levels considered to be legitimate risk taking opportunity levels. However, to determined which level is appropriate, the volume and volatility is considered to as trigger. For this purpose VT (volume tracker) ideally would be at the "non decision" (when green average was above red average for some time and came in close proximity to each other, brining buyers and sellers into undecided mode). Such VT set up confirms the timing for low risk Long entry. For short entries, all the above, just visa versa. Price has to be traded bellow "Red" zone and "Blue" leg extension is pointed downwards.
Examples... S&500 index futures — Gold Futures