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The ES 1052 level seems to be holding so far tonight. That's from Friday on your chart, and represents the VAL or is it simply the day low Friday? (blue line)
Ok, that was a dumb question and I realized that now. LOL. But, it won't stop me from asking another probably.
a) Can you mark up that chart and just label each of those lines? For instance, the blue dashed lines, specifically the three equally-spaced ones in the middle, what are they?
b) I was thinking the VAH and VAL were correlated to the POC and somehow you could mathematically formulate the VAH and VAL by using like stddev +/- the POC. Am I wrong here? Because the VAH and VAL on your chart, if I am reading it right, is not equal distance from the POC. Why in my head am I also thinking something like VAH/VAL is where 80% of the volume trades?
I don't think its a dumb questions. If you don't know.
Value area is 70% of the volume traded. Or, if one uses the TPOs as the value area it would be 70% of the trading activity or price levels. The value area is supposed to be the 1st std dev. of a bell curve. Hence the 70%. It will not always be a bell curve. The bell curve usually come when you have balance. In other words, consolidation or a trading range. If you don't have balance then it will be skewed where the VAL and VAH are not equally space about the POC. I hope I answered you questions.
Okay, I goofed. I had the Value area set to calculate based on TPO's and not volume. So, the second chart is with the value area calculated based on volume. Sorry...
Geeze my profiles are definatly screwy, thanks so much for yours they are keeping me on the straight and narrow. Great opportunitys yesterday around the 1070 level, it was key.
Shame i was asleep when the big push came in. Weak sentiment and i have a longer term tgt on the snp cash of 1000 - 1005 ish. Curnetly stabilising around the hourly exstension level.
It is tough to tell from the pic, but what I think is that your profiles are using the TPO for value areas high and low as well as the POC. I don't see a volume histogram on your profile chart. I base my value area and the POC on volume. To be honest i don't know what is more important, but from a logical perspective volume seems like the thing to use. I guess you could use both. If this is what is taking place then it would explain why your levels vary from mine.
sorry for no chart yesterday. I am doing some non-trading consulting work and it gets in the way of my forum activities.
Thanks David, i will take a look at that, i think there is some data missing from my market delta so i will have to get that sorted when my trial period ends, i have been hanging out on trial as long as possible to keep the cost down . Enjoy your real world work!