Hi Guys,
This is my first post and I'll try to keep it as brief as possible.
After a fairly lenghty absence, I've returned to trading the SPI 200 (Aust. Share Price Index). Over the past 6 months or so, I've been studying "Mind over Markets" and have been amazed to see how accurately the market reacts to the various pivot points of Market Profile - to such a degree in fact, that I don't think I could trade the index without it anymore.
My question is: If/when the market opens outside the previous day's
Value Area (out of balance), how much importance can, or should be placed on previous
Value Areas and at what time should one consider them to be no longer valid? I've seen the market react to previous pivots, but personally find it more difficult to "trust" them as possible targets, or entry points.
I calculate my
Value Areas using an on-line TPO Chart and then manually update my charts on a daily basis. A bit archaic I know, but I find it works for me.
Any comments would be much appreciated.