What's the objective of tpo count? How is tpo count used for analysis. ?Originally Posted by ;
Predominance of the TPO belowe (sell strain )
what's the objective of tpo count?
How is tpo count used for analysis. ?
TPO count tells you exactly what?
I'm having difficulty knowing....can you explain exactly what this means?
gbpjpy
I have been reviewing document outputs from the composite indior and'm curious about TPO above and under counts for overlays which are bracketing versus not-bracketing. Perhaps I'm confused, but it seems that the POC level (and hence the TP above/below counts) is determined by exactly the same rules for bracketing versus not-bracketing overlays. If that's the case, it looks like that the TPO ratio could badly reflect buying and selling pressure for larger overlays, especially when price action was active for days around a new node away in your overlay POC. Thank you. Edit: but then again, that buying and selling pressure ought to be evident on the reduced overlays. Maybe I answered my own question lol
there are various ways tpo count is used for analysis. TPO count in the circumstance where you speak, (above/below). Carries significance in balanced/bracketing in conditions. However tpo counts are used as various other references i.e. TFF (trade facilitation variable ), LTF control, etc.. Tpo counts in a variety of manner tell you different things about the market. Depends on the context. The raw information itself is pretty much useless unless you have learned how to utilize the information first...
in the circumstance where you speak, (above/below), it is not about the values themselves, it is what the counts . Knowing if there are more tpos above or below carries no informational value with no understanding the logic of why how.
Let us make sure we're on precisely the exact same page and we have and comprehension of the exact same basic auction market fundamentals....TPO count in the circumstance of above/below....
At a bracketing state what does more tpo's above the poc infer? And can you explain why?
At a bracketing state what does more tpo's below the poc infer? And can you explain why?
Not necessarily....
Edit: I'm surprised nobody canoff the top of their minds, answer the question. I thought for sure blot would have replied, once I asked the exact same question a pole or two ago...
In a bracketing overlay covering longer periods, more tpo's over the poc typically infers downward pressure because more traders over the poc are trading brief than buyers below trading long -- pure auction activity in a balanced market (if I have that wrong, then...). I've mixed opinions though when non-bracketing conditions exist and in which one ought to specify the poc, which impacts other references, as you noted. Considering a 20 afternoon overlay where the POC defined at 1000 15 days ago and price is currently in a clear (but smaller) node in 900, where a person considers that the POC, will greatly alter the tpo's thought above and below and whether or not there is buying/selling pressure for that overlay at the time the 20 day tpos are measured. It is an inquiry to me personally.
In that you're correct....
The total TPO figure above the point of control represents other timeframe traders prepared to sell and remain short above value, while overall TPOs beneath the point of control represent other timeframe traders prepared to buy and remain long below value
That's the point you cant. In a trending market there is not any POC
Based on MP profile nomenclature:
To calculate a value place you loe the central 70 percent of tpo/volume,
The count begins at the price with all the summit tpo's/volume (Point of Control)
At MP profile nomenclature daily assumes equilibrium (VA).
AMVT is not MP. This was studied and discussed many times from the source material already posted into the thread..explaining the 70 percent formula fails. .
Just imagine a market in which price rises steadily, at the exact same rate, throughout daily. There'll be exactly the exact same amount of TPOs at every price. Such a distribution has no POC by which to start the count. More to the point, what is'value' in a trending market? Value comes from a consensus at a bell shaped distribution. There, some traders believe value is higher than the POC; an essentially equivalent number think value is lower than the POC. This stand-off explains the quasi-bell shaped curve of the profile in congesting markets. Moving markets generally do not have a bell shaped distribution. In the non-balance situation the snapshot calculated value is misleading at the least. At worst, it may lead to trading to the wrong motive.
So the key is that valid value can only be found while the market is at a balanced (congesting) state. Thus, a precondition for valid value determination is equilibrium; therefore then we must specify what balance means in market measureable terms.
https://web.archive.org/web/20150630..._day_rule.html
This isn't MP, we're not using a series of MP's or even POC's from 15 days past, nor do we utilize or compare this 20day distribution with the preceding 20 day supply, you're trying to understand AMVT using MP methodology....Again, this is not MP, nor is MP methodology applicable to what we do here.... I don't think you understand how overlays construction is used for analysis from AMVT
People put far too much emphasis on a single reference..If you read VBPT you'll see POC isn't even mentioned in the index.
The concept of POC implies Value/balance. This isn't MP..the notion of a 70% value place doesnt apply to overlays. Those familiar with the source material have learned this...
The common thread running through all our studies is validity of the information. If trading is to be a science, then the data used in the analyses must be legitimate. The initial Market Profile analyses, and today, treats any calculated value place as a valid measure of value; with additional analyses moving from that assumption. But our job on Market Condition has proven that a one day snapshot profile may not be representative of a market and often isn't. Therefore, relying on easy reference points (purpose of control, value place ) can give an entirely misleading read of a market. If your data is not valid, how do you possibly succeed by following it? ....
https://www.forexforum.co.za/cryptoc...-alter-ea.html
TPO counts have other uses besides above below the POC. TPO counts (measured in different ways) are employed in other ways and other references.
TPO counts above below the POC has importance in bracketing conditions. In non bracketing markets, TPO counts (measured in different ways) are employed in other ways.
POC has a specific importance in bracketing conditions, In non bracketing markets, POC has little importance in the context of tpo's above or below. However POC for a reference (is used measured in different ways) comparative other references providing other kinds of info.
You're looking at the raw data............it'll always show an abv/bl tpo count as the counts are used for other functions, not only above below the POC
POC has little significance in non bracketing markets. However POC for a variable is used in conjunction/relative to other factors providing other kinds of info.
Those familiar with the source material, would have discovered to discriminate when and under which circumstances to use references and if they do not apply to the situation at hand.
Not all reference points are important in any 1 case. You must learn about each of them and how to discriminate. In some profile instruction the operative word is'holism', looking into the pot together with some 30 or so components and divining which restrain the flavor today. Value Analytics goes another way, dividing the components, measuring them and their flow individually and removing those which do not apply to the situation in hand.
Feedback is involved: if your comprehension of a specific thing (say trade facilitation) is in error and you always make that mistake on your market egy; your mistake will become clear to you fairly quickly. This illues the value of isolating the reference points and analyzing them individually.
Https://www.forexforum.co.za/cryptoc...et-system.html
Each variable gives an individual piece of information about just what the market is performing, independently of all of the others. If the volume is increasing over the previous 3 days, that is a part of information separate from becoming concerned about what the, say range expansion, is performing. Increasing volume is an alert to some coming breakout in a balanced market or of a continuing tendency in a distributing market. You have two dozen extra reference points which may or may not confirm that observation. But each is analytic, i.e. includes a numerical value that permits you to understand it as it changes with changes to market state. Value Analytics enables you to consider each variable separately. Once you've done that, now you can consider how they fit together, what the principal tendency is. Https://www.forexforum.co.za/cryptoc...ndior-mt4.html
A high-profile in a balanced market stage would be interpreted differently than the same profile inside a trending market.
Https://www.forexforum.co.za/cryptoc...ines-time.html
The complex nature of the market is a strong argument for a phenomenological approach to market theory. A market has several aspects, components which are functional components, but still with a large degree of independence in their own behavior. As one of those elements varies, that changed behavior is returned into the market through the feedback mechanism. While elements like volume, volatility, range, timing behaviour and the like are individually measureable, they all combine to form the market one studies or trades. Each element has to be discovered and analyzed on its before there is a thought of contemplating how it impacts the entire world. The vital question of extreme market behaviour such as big, rapid changes in value, has to be understood. It is the thesis of Auction Market Value Theory that all the market components can be isolated and has to be understood prior to forming a coherent description of a market. The experienced trader collects all of the market information available, assesses each piece, ending with an awareness of the market position. Not all pieces are necessarily needed to find the market's condition. Sets that are different will be used at different times.
https://www.forexforum.co.za/broker-...unt-trade.html
Thank you for the clarifiion. Yes, I find that poc only applies to bracketing overlays. I was confused because the indior computes poc for nonbracketing overlays, which didn't make sense in light of the illuions of chapters 6 of vbpt.
audnzd
Posting Permissions
Reply With Quote
