http://www.eminitradingcoach.com - Learn how to Trade with Market Profile. Market Profile is a technique that is used by future and forex traders to help technicians understand the internal structure of the markets. There are 3 key components to Market Profile: Value Area, Point of Control and Value Area High and Low.
Value Area is a primary component derived from the Market Profile. Value Area is intended to show the range of prices that reflect the most interest on the part of buyers and sellers. The Value Area represents the range of prices that contain 70% of a day's trading activity.
The price that recorded the most trading activity is the Point of Control.
The 80 percent rule works may be slightly more than 50 percent of the time. It is difficult to gauge because no one has an integration function that will provide you with 70 percent of the prior days volume consistently. I would love to find that code. So they can always massage the data after the fact. But if you watch TOS shadow trader it fails a lot more than 20 percent!
infoanalysis 6 days ago
but..i the examples you took in the TOS platform you are talking about the value areas of the same day, so it does not make much sense, you should take the value areas of the day before!
bellapadella 3 months ago