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Thanks for the thorough answers. I'll reread it to get more questions.
Another question: "I use the Market Profile to tell me if a range day or a trend day is likely by the shape and location of the bell curve and the POC.
If a B shaped Profile forms near 792, then it is possible that a trend move lower could occur when the number of willing buyers drops to zero and a imbalance in the supply demand equaision occurs."
So you're saying here if Wednesday is a B shape, then Thursday is a possible down trend day? So is there an inference that if the previous day has a B shape, chances of a trend break to the downside likely and if previous day with a P shape, an upward trend likely? |
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That is what a trend continuation move will look like on a MP.
The people who trade with the Market Profile noticed the P and B shapes before trend continuation moves and have written articles about it.
If the price hangs out near 792 on Wednesday, it will mean that the demand at that level is being absorbed. If there is a close on a 60 minute chart below 792 then the number of buyers has dropped to zero.