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My understanding of Unfinished Auction (aka Unfinished Business) is that it is equivalent to a "Poor TOP" and "Poor Bottom" of the TPO Market Profile concept. The idea is that market should come back and revisit these areas to "repair" or "finish" the failed market auction that happened at those levels. Quite often, based on what I have observed, the first test of Unfinished Auction area fails so taken in consideration overall Market Context it may be traded contrary tot he trend. Just my observation.
Again, I am NOT an expert and still learning myself so please take it with consideration. I am sure there are many way more experienced traders on this forum that could add to my comments or correct them (I could be wrong).
Also, I am just starting to explore the Gomi indicator set for Sierra and really like the graphics and how they present the data. IF you don't mind sharing the settings used on your setup of these indicators I would appreciate it. It will certainly save some time.
Yes, good example of the "repair" of the failed market auction. I am familiar with MP concept, using it for my day preparation routine to gain possible understanding of what type of day to expect and where the key areas of support / resistance may be. I identify Trade Locations using the MP and then look for the OF and Delta to take the trade in those areas.
Hi there...seems you are already on the right path and have got info. Not to diverge you off the Vol Foot print & Delta you were looking for. But just thought of pitching in what other forms of Tape reading could also exist. I try and follow a path given by Livermoore and a proponent of Wyckoff both of whom knew what the tape foretold much in advance.
However just an fyi/-. What you call as DOM and passive orders also does have much predicting power. Yes ofcourse it is difficult to analyze. Tape reading comes in various forms & the most astute and predictive form is when you have the ability to predict price depending on what is transpiring rather than what has transpired.
Tape reading depending on what is being done...can be done on ETFs..Long Only...Bear funds..Oil...Gold...Futures, etc etc.
Check a video from Nanex on the flash crash. One of the best videos as the crash was occurring not on one instrument but on all indexes.
Great post, thank you! I have to be honest, it took me 5 times to read this quote of yours "..Tape reading comes in various forms & the most astute and predictive form is when you have the ability to predict price depending on what is transpiring rather than what has transpired.." before it TRULY sinked in. YES, this is EXACTLY what I am trying to learn and what I need to improve on. My good understanding of the prior activity on the Foot Print and Delta activity still lacks that bridge to over "what is happening NOW".
I would greatly appreciate if you could share some insight on what approach you personally take in order to analyze how you evaluating the real-time market activity before making a decision on whether to take the trade or not, get out of the trade or stay in it longer.
It is absolutely fascinating to watch the video you have posted, observing how liquidity is drying up right in front of your eyes leading to the crash and how it is slowly being replenished taking the market higher from the abyss while the rest of the world is still watching the talking heads on TV and lagging light years behind to what is happening in REAL-TIME. Incredible! This is by far THE BEST illustration of how the market is moved, being affected by lack of liquidity (trading vacuum). The same very concept is very well illustrated by Peter Davies in this article:
hi there @Meklon glad you found some value. But let me tell you there is never a guarantee. And its continuous learning. Even today I constantly try and explore as things are always changing. But the Rule of Supply/Demand & what happens before & after these levels can be known if one can read Supply/Demand as shown by Wkyckof. Likewise what Livermoore saw on ticker tape can be easily seen by platforms such as Tradestation with tweaks.
Wyckoff was shown to me by one of my mentors & i since he never shared his charts publicly...and hence I will also not. My charts actually print out what is happening at the market ...though i still use bookmap & jigsaw. I use jigsaw & bookmap to see area of Hidden Orders or when markets are flushed/blown thru. But Limit Order are printed on my candles. However attaching a screenshot of how i use Jigsaw. Am just very used to it.
But i also look at various things such as how Orders arrive at exchanges which gives me a certain edge. Nothing is a guarantee in trading & hence this is something i have experienced & come to learn of certain order conditions as they happen in the markets. I do something similar for Heavy weight stocks & funds which will influence the market.
But again I do not look at this in isolation. This is typically used in conjunction with Cumulative Delta which I find powerful & use of Liquidity (google term VPIN which will show what some school of thought thinks what caused flash crash...but this happens regularly). I use liquidity with certain Spikes which happen in the markets. i did have an old journal which i stopped updating...some of this may have been shown there.
bottom line for me....identify Key Supply/Demand...what happens there before & after. What happens when Informed Traders enter/exit the markets & can their footprints bee seen.
What a coincidence? try to adopt the same trade plan, i was read this unique combo (MP with OF) somewhere on this forum.
