Wednesday, July 9, 2008

Interaction of Taylor and Market Profile for newbies

In a nutshell:
One core 'indicator' in Market Profile is the 30-min buying or selling tail.
This closely relates to Taylors core indicator -- the high or low 'violation' -- note that a high or low violation creates a TAIL on a daily chart instead of the MP 30-min chart -- but its the exact same 'concept' at work.

Be it a Taylor excess high/low or a market profile excess high/low, both are good tip-offs that mark the end of one swing and the beginning of a new 'auction' in the other direction -- which may last a day or may last multiple days.

No comments: