Volume Profile and Market Profile a new wave of market picture

Thanks bro I have to participate in any thread started by you, there's always something to learn from you.

I think the book is published by Chicago Board of Trade and written by Shera Buyer & Associates. Peter Steidlmayer's research is included and referred to but the book is not written by him.

I had the Hard copy of this,thought it is his own publication printed by CBOT,thanks for information !!!

Poor High and Poor low :In a bull trend with HL and HH ,we often we find people who short the market or exit there position seeing market is over valued or indicators overbought so they start a swift move of selling ..there after market takes a breath and recovers from lows but time taken to recover is some what longer and that high is called Poor high ...reverse of this is called Poor low

Context-wise two days having the same high or same low is also treated as poor high/poor low and such zone requires repair. In classical technical analysis we call such pattern as double bottom or double tops and such zones are meant to be revisited which in classical technical analysis we call such zones as support/resistance zones

Excess :Many times we seen sudden gap gown and gap ups , there after swift recover happens with in no time,Generally Excess is seen in the extremes of the profile with strong pullback as shown below. Excess occurs across various timeframes (Hourly, Daily, Weekly Charts)

Tomorrow i will post some charts on this(Poor high and low and excess )

POOR HIGH/LOW and EXCESS

Just showing a candlestick pattern to explain in details PoorHigh/Low and excess..

Let us discuss to candle stick patterns which you all know hammer/hanging man except on basics of close there is nothing special for us in classical TA ,but profile user sees this on basics of time

Bullish hammer (with respect to the recovering from LOW) if it is done is swift manner within very short time then it is Excess and profile users give more importance to this one.On basics of time POOR HIGH/LOW AND EXCESS are very vital for profile traders




If that hammer is formed near any support with in uptrend which almost makes it double bottom or a revisting area (demand) and time taken to recover is much longer then it is called “POOR LOW”

If that hanging man is formed near any resistance in downtrend( rally in downtrend) which is also a revisting resistance and time taken to crack form that high longer then it is “POOR HIGH”

In uptrend we will have poor low’s i.e; market moves away from trend and resuming previous trend after spending some time in opposite direction (poor low ) if the time spent is very less then it is excess low

Below chart of Nifty Spot and demand and supply zones marked

Just classify date marked into Poor high/low and excess and post charts watching intra day charts ..on basics of this I can move further



Note:Manual drawn lines not from any AFL

In profile Language

Poor High – When exactly 2 TPO’s exist at the high for the day. A poor high will generally lead to higher prices unless it occurs against resistance. This is referred to as a double top in most trading circles but a poor high should generally never be shorted as it indicates acceptance at the market high.

Poor Low – When exactly 2 TPO’s exist at the low for the day. A poor low will generally lead to lower prices unless it occurs against support. This is referred to as a double bottom in most trading circles but a poor low should generally never be bought as it indicates acceptance at the market low

Example 24th june time taken to fall is 14 candles but recover for morning high is 7 to 8 candles.so it is Poor Low ..because we are in uptrend in long term chart and recovery is swift but nifty spent quite a bit at lower levels so this comes under Poor Low and not excess.

Take remaining and post your views

Sorry about the delay in responding just saw the posts.

Just taking a shot, my understanding could be wrong

I think..
8/7 Excess

22nd and, 4th august also seem like Excess cause the recovery seems swift i.e., within 1 or two bars

Is 19/7 a poor high because it is the same as previous high
Please correct

8/7 recovery is taken longer time so it cannot be excess cracked against the trend and formed low in first With in "A" TPO ,hence this is Poor Low

Remaining all is correct !! IMO

Few more important terms of reference to be used...

Initiative Buying – Buying above the value area. Initiative buying would imply that you expect the current uptrend to continue as you are willing to buy at a higher price than you could have bought during the previous day. With initiative buying you are looking to capitalize on a fast moving market that is making new highs.

Initiative Selling – Selling below the value area. Initiative selling would imply that you expect the current downtrend to continue as you are willing to sell at a lower price than you could have sold during the previous day. With initiative selling you are looking to capitalize on a fast moving market that is making new lows.

Responsive Buying – Buying below the value area. Responsive buying would imply that you expect the market to return to the mean (the center). Buying responsively in an uptrend is a strong play.

Responsive Selling – Selling above the value area. Responsive selling would imply that you expect the market to return to the mean (the center) Selling responsively in a downtrend is a strong play.

Initiative Buying/selling is almost Break out version of classical TA

Responsive activity is something which comes at important support or resistance. For example: Previous day high/low, morning range high/low, congestion zone high or low criteria

With respect to VA we will have 5 scenarios as mentioned below




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