In upcoming posts, I'll endure showing a few ways of displaying data on charts that I honor useful.
Much of short-term trading boils downwards to designing recognition. How data is displayed really much impacts the patterns that are perceived--and those that are missed.
What is of import is that the nautical chart clearly reverberate the data nearly utilized yesteryear a trader inwards making decisions.
One slice of data I honor crucial is perspective or context: I desire to encounter how the immediate, short-term activity is related to the longer-term marketplace position auction.
A unproblematic context is provided yesteryear the blueish bars along the left axis. Those display the full mass traded at each marketplace position cost over the week's trade. As yous tin see, nosotros made fresh highs for the calendar week this forenoon alone to stall out. It was helpful to encounter where mass had been distributed over the yesteryear few days, every bit that helps define what Market Profile traders telephone telephone the "value area".
A marketplace position that can't suspension out of a attain is unable to flora value higher or lower. The rejection of cost higher upward value inwards the forenoon led to the retreat dorsum into the value attain of the longer-term auction.
Markets continually flora value, reset value, as well as render to value. Many of the day's best trades come upward from recognizing when a movement away from value is gaining credence or finding rejection.
Further Reading: Markets inwards Profile
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