In a Market Profile, an uptrend is defined as initiative activity above the previous day’s value area while a downtrend is initiative activity below the previous day’s value area.The greater the distance in price from the previous day’s value area, the greater will be the potential persistence and strength of the unfolding trend.See Figure 17.17.Listed below are the six basic degrees of bullishness of any subsequent trend, in order of bullishness:1. Current day’s activity is within its own initial balance and above the previous day’s value area (Least Bullish Scenario).2. Current day’s activity is above its own initial balance but within its value area.It is also above the previous day’s value area.3. Current day’s activity is above its own value area and above the previous day’s value area.4. Current day’s activity is within its own initial balance and above the previous day’s range.5. Current day’s activity is above its own initial balance but within its value area.It is also above the previous day’s range.6. Current day’s activity is above its own value area and above the previous day’s range (Most Bullish Scenario).In similar fashion, below are the six basic degrees of bearishness of any subsequent trend, in order of bearishness:1. Current day’s activity is within its own initial balance and below the previous day’s value area (Least Bearish Scenario).2. Current day’s activity is below its own initial balance but within its value area.It is also below the previous day’s value area.3. Current day’s activity is below its own value area and below the previous day’s value area.4. Current day’s activity is within its own initial balance and below the previous day’s range.5. Current day’s activity is below its own initial balance but within its value area.It is also below the previous day’s range.6. Current day’s activity is below its own value area and below the previous day’s range (Most Bearish Scenario).A novel approach to gauge the degree of buying or selling pressure in the market on any given day that is unique to Market Profile charting is the TPO Count.An underlying assumption in Market Profile is that the markets are expected to move toward a balance between price and value, and in the process to ideally achieve a symmetrical distribution of price activity around these areas of balance or value, over the longer term.Hence, any upside or downside skew within the distribution is expected to even out over time.The TPO count compares the number of TPOs above and below the POC.TPOs above the POC represent sellers or market participants with a bearish conviction while TPOs below the POC represent buyers or market participants with abullish conviction.A larger number of TPOs above the POC suggests that there is potentially greater selling pressure in the market, and similarly, a larger number of TPOs below the POC suggests that there is potentially greater buying pressure in the market.Any imbalance of TPOs on either side of the POC skews the distribution.To find the TPO count, count all the TPOs above and below the POC, excluding TPOs along the POC and all single tail TPOs.See Figure 17.18.Therefore, if we identify buying pressure in an uptrend, that would indicate an added dimension of bullishness to the uptrend.Similarly, selling pressure in a downtrend would be a more bearish indication.
正在翻譯中..