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Hi Daniel,
I've used a simple technique called " The TPO(Time Price Opportunity)
Count."
First, you figure out where is the point of control, i.e. where prices
spent most of the time during the day session. On 7/31, the point of
control was 116.14.
Then you count the number of the TPOs above, and below this line. There
were 87 TPOs above, and 44 below. The number above/below this line
indicates the sellers/buyers willing to sell/buy the market, and stay
short/long.
Well, the ratio 87/44 was telling me that the bears had more force than
the bulls on 7/31! A warning signal(if you're long) for the following
day!
Frank
PS There is an excellent book by Robert Dalton, Mind Over Markets which
explains all these in detail.
Daniel wrote:
> fchaman wrote:
>
> > .......Recently, I've become a subscriber to the CBOT's Market
> Profile. After
> > reviewing yesterday's market activity, it was evident that there was
> a
> > massive selling pressure in the Bond's market! In despite of, the
> > market closed higher(116.25), the Market Profile was giving a hint
> > that the bulls can't hold this market any longer!
> > I overlooked this fact, and the bond market took all my gains for
> this
> > week in only two hours of trading!! The lesson: pay more attention
> to
> > the structure of this market, there is a logic behind it. And the
> only
> > way to see it, is via the CBOT's Market Profile.
>
> Frank - Would you mind briefly explaining how the Market Profile gave
> you indication that there was "massive selling pressure" in the bond
> market the day before it tanked?
>
> Thanks, Daniel
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