Sort of an old dead thread, but I will post here. While I believe the
VSA thread is both about
VSA itself and incorporating
VSA with an individual trader's other tool, I do feel this would be an off topic post in that thread.
A lot of the background on the PivotProfile can be found in certain threads, so I will not go into it . That is, unless this thread becomes active and discusses various "pivot" methodologies. Some of which would include, but not be limited to:
1. Floor Pivots
2.
Value Area (Market Profile) Pivots
3. Fibonacci
4. Camarilla Pivots
5. Trend clusters
6. Plant harmonic lines
7. Delta
8. Murrey Math
9. Woodie's (of CCI fame)
10. et all.
Anyway, this first chart shows a full PivotProfile for a full 24 hr day (1700-1700 Tuesday the 22-Wensday the 23). The black dotted lines are there just to show separate this time period from the rest of the chart.
One quick note: in a post on the
VSA thread I said price target of 1.4504. The low on this day was 1.4509. My reasoning had to do with the
Value Area trade. Which brings us to the purpose of the post. How the Pivot Profile defines the trading day and its "correctness" via Market Profile.
The various levels (lines) on this chart HAVE BEEN ADDED AT 1700 - THE END OF THE DAY. Now, one can see many hits and bounces off of these lines. One might go as far as say they are very good. But these lines are done after the day using a static formula. The contention is they SHOULD show you were the market traded on that day. They are, however, used the following day. Of course, to be any good in the next day's trading, they must have some relevance today (all things being equal).
I do not want to go into the
VSA, there is a great thread for that. Here, I want to focus on the Profile. Specifically, the fact that area from the upper pink line (DRH) to the lower pink line (DRL) is the
VALUE AREA. Roughly 95% of the time, according to
Mark Fisher, this area should be the same as through Market Profile. The middle of the
Value Area is the Point of Control. Price wants to trade to that high volume level on subsequent days.
The second chart depicts trading later on in the market. You can see that the London open is included as well as the lower volume/slower time before its open. Note how price narrows and coils around the
POC and is supported/resisted in the Deviation Range (Upper Pink line to Lower Pink line). Of course, is support or resistance always held, there would be no trends. But our focus is on the apparent role the
POC and all other lines/areas play in trading going forward.
