Dislikedmzvega,
Just to confirm that the directional performance relationship posted as table 4.1 attachment of post #5023 is used to analyze the end of day -vs- the previous day to gauge the directional bias for the upcoming day? Am I reading this correctly? Also haven't been able to figure out what OL stands for (line 4,5,13, ect...). Any books or manuals...Ignored
QuoteDislikedAlso haven't been able to figure out what OL stands for (line 4,5,13, ect...).
OL stands for overlapping to lower value. When comparing current value area to the previous days value area. The vol alone doesn’t tell you much. Directional performance analysis is a combination of "Attempted direction", "value area placement", & "volume". You would first need to determine the dir. Per. of the monthly to understand the context (Market condition). Low vol w/higher value could be an indication the trend is slowing (attempted direction is also a factor). But the same low vol, w/lower value, could be an indication of a very weak market. A rally in that context,(depending on the direction attempted, or having been in an up or down trend) could be short covering at best.
QuoteDislikedCan someone please explain how and what IBH, IBL, DIBH and DIBL, RF and QClose stands for in the ay_TPOChart?
The bar between the daily bar and the start of the letter profile is called the initial balance (IB). It is the first hour of trade (first 2 30m bars) Just like there is end of day analysis, there is something called "opening conviction" How price trades during the first hour of trade will give you an indication of the days pa. Any trade outside the IB is caused by longer TF buyers or sellers initiating or responding to price. The opening conviction at end of day helps you determine the "Attempted Direction".
It’s kind of pointless for me to continue to repost another explaination of dir perf. when knowledge of "opening conviction" is needed to determine the "attempted direction" part of the directional performance analysis. I recommend reading Mind over Markets. I don’t mind helping explain concepts, to those seeking help, however I would appreciate if you would read the first four chapters to get the basic concepts of the Auction Process before asking me to waste my time reposting the same answers the same questions that I’ve answered 79 or moretimes. If you don’t want to read the thread to find the answers, I would appreciate if you & others could read the first four chapters of mind over markets, before asking me for help. If you read the first 4 chapters it will give you a better explanation of the different parts of the indicator & how to read them then I could, IB(Initial Balance) Qclose (Quality of Close), RF(rotation factor) etc...........If you want to shorten the learning curve read the first 4 chapters of mind over markets.
Markets are not efficient, rather they are effective - Jones