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I'm not a student of MP, but I understand that it considers the value area to include 70% of the trading activity. Since the center portion of the bell curve represents 68%, I assume that this is what they have in mind. Given that, the tails on either side would represent the same as the bell curve, 13% and 2% on one end and the same on the other.
I learned the same support and resistance dogma as everybody else, and it made sense, as far as it went, so that's what I've worked with all these years. But auction market theory fleshed it out and deepened my understanding of just what is going on with regard to S/R.
Someone wrote that if you combine the principles of Wyckoff with the principles of auction market theory, you have about as close to a grail as you're going to get. He may be right. |
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I don't know if I am asking this question correctly, but, if 68% is the center portion of the bell curve and the
POC doesn't necessarily have to be at 68%, then how would (could) one calculate range extension(standard deviation)? Is it calculated from the bell curve median or the
POC?