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Thanks for commenting and you can reuse my charts anytime.
I was concerned that I may be way off on this one. :-) So the indications you put on your mark-up such as PSY and ST etc., are those then part of a new accumulation in a trading range, or is it part of a distribution? Or is there a distribution and then a reaccumulation? Can you point out areas on the chart that would help me to determine if its distribution or accum? Also, wasn't the daily a weak close with lighter volume. Does this come into play for you or not?
Thanks,
David
Can you help answer these questions from other members on NexusFi?
Do you still use market profile in your analysis of the markets? I want to start with price and volume as my guides to the market and was reading through your CL MP thread and thought it looked useful.
No problem with the question. Lately I haven't been looking at MP but I think it has value. As I continue to move forward I may look at a MP chart and compare it with other analysis, but I'm not real sure that I want to complicate things. Don't forget that MP is just another way of looking at the data, so its all there on a regular chart as well.
I think starting with price and volume is a good idea and you have that in a bar chart or candlestick chart. Just add volume to the bottom. I hope I answered your question.
Thank you for the answer. I've noticed after looking at just a few MP charts that one can get a decent visual of what the mp distribution will look like by just looking at a bar chart. The highest volume peaks are usually about the same place as if one would box in the ranges on a bar chart.
The thing about distribution vs. reaccumulation is that we usually do not know from the patterns in the beginning, because they are usually the same. The first thing I noticed when price dropped from 1.3453 was the three wave movement on lower volume down to what I labeled as AR, which I perceived as a part of a correction.
Regarding the lower volume on Daily I saw this as a result from a ending/weaker up move to 1.3453 and then the following corrective down moves on lower volume on lower time frames. Both which is coherent with the beginning of reaccumulation/correctional move, but as stated above we usually never know in the beginning. We have to see or wait until higher volume with or against the previous larger move comes in. Regarding the early three wave correctional pattern mentioned and the higher volume showing towards ST, I thought the volume was at the wrong time and without the right patterns and levels to be final for a larger move in either direction.
Thanks,
Laurus
Edit: For convenience adding picture discussed, correcting text.
“If you wish to see the truth, then hold no opinions for or against anything.” - Hsin Hsin Ming
Here is a Daily of Gold. It seems to be on the move to the down side. Almost $50 since resistance at 1393. I believe is will continue to fall, but that is an opinion. Oops, better not have an opinion.
Okay, I'll go out on a limb. If it breaks the 1320 level I say that we could see 1200. Of course not over night. Just my opinion. I'd like to hear other thoughts.
From what I am able to see the higher volumes are coming in towards lows compared to tops, and are thinking accumulation, but as you mentioned there is strong resistance at 1.3500. For several technical reasons I believe. On the other hand at the moment I see there is not a strong follow up from last low at 1.3395. Early to say, but maybe we will have an UpThrust this time. That would be nice
Laurus
“If you wish to see the truth, then hold no opinions for or against anything.” - Hsin Hsin Ming