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THESE TERMS AND ACRONYMS ARE USED DURING DISCUSSIONS:
THESE TERMS AND ACRONYMS ARE USED DURING DISCUSSIONS:
ACRONYMS
ACRONYMS
- 3D D=THREE DAY PROFILE DAY SESSION
- 3D 24HR=THREE DAY PROFILE 24 HOUR SESSION
- 5D DS=FIVE DAY PROFILE DAY SESSION
- 5D 24 HR=FIVE DAY PROFILE 24 HOUR SESSION
- 10D DS=TEN DAY PROFILE DAY SESSION
- 10D 24HR=TEN DAY PROFILE 24 HOUR SESSION
- 20D DS=TWENTY DAY PROFILE DAY SESSION
- 20D 24HR=TWENTY-ONE DAY PROFILE 24HR SESSION
- 60D DS=SIXTY DAY PROFILE DAY SESSION
- 60D 24HR=SIXTY DAY PROFILE 24 HOUR SESSION
- 90D DS=NINETY DAY PROFILE DAY SESSION
- 90D 24HR=NINETY DAY PROFILE 24 HOUR SESSION
- BL=BRACKET LIMITS
- BR=BRACKET RANGE
- CL=CLOSE
- ES=EMINI S&P
- FP=FOOT PRINT
- H=HIGH
- L=LAST
- LL=LOWER LIMIT
- LO=LOWER OCTANT
- M=MIDDLE
- MP=MARKET PROFILE
- O=OPEN
- OL=OCTANT LIMITS
- OFL=OCTANT FROM LIMIT
- OTM=OCTANT TO MIDDLE
- POC=POINT OF CONTROL
- QL=QUADRANT LIMITS
- TV=TOTAL VOLUME
- TPO=THAT PRICE OCCURED OR TIME PRICE OPPORTUNITY
- UL=UPPER LIMIT
- UO=UPPER OCTANT
- ES FP BA=EMINI FOOT PRINT BID ASK
- ES FP TV=EMINI S&P FOOT PRINT TOTAL VOLUME
- ES FP COLOR=EMINI S&P FOOT PRINT COLOR
- ES MP D IC 1PT=EMINI S&P MARKET PROFILE DAY INDIVIDUAL COMBINED 1POINT
- ES MP D IS 1PT=EMINI S&P MARKET PROFILE DAY INDIVIDUAL SEGMENTED 1POINT
- ES MP 1D IC=EMINI S&P MARKET PROFILE ONE DAY INDIVIDUAL COMBINED
- ES MP 2D IC=EMINI S&P MARKET PROFILE TWO DAY INDIVIDUAL COMBINED
- ES MP 2D IS=EMINI S&P MARKET PROFILE TWO DAY INDIVIDUAL SEGMENTED
- 5 TICK REVERSAL: TYPE OF CHART USED, BASED ON A 5 TICK REVERSAL
- VOLUME AT PRICE CHART: TYPE OF CHART USED BASED ON BID / ASK VOLUME ANALYSIS
- PROFILE CHART: TYPE OF CHART USED DEVELOPED BY THE CBOT THAT PLOTS PRICE DATA USING ALPHABETICAL LETTERS TO DESIGNATE A TPO (THAT PRICE OCCURED, OR TIME PRICE OPPORTUNITY).
THIS IS A GLOSSARY FOR THE DUAL AUCTION MARKET PROCESS:
THIS IS A GLOSSARY FOR THE DUAL AUCTION MARKET PROCESS:
AUCTION MARKET THEORY: Analysis of complex processes of the Dual Auction Process
AUCTION MARKET THEORY: Analysis of complex processes of the Dual Auction Process
BALANCED MARKET: Gaussian bell-shaped distribution of price over a particular time frame. 3, 5, & 10 day, multi-day profiles showing at least 3 TPO's over 4 different price levels. Any MP multi-day profile over 10 days should show at least 5 TPO's over 4 different price levels.
BALANCED MARKET: Gaussian bell-shaped distribution of price over a particular time frame. 3, 5, & 10 day, multi-day profiles showing at least 3 TPO's over 4 different price levels. Any MP multi-day profile over 10 days should show at least 5 TPO's over 4 different price levels.
BELL SHAPED DISTRIBUTION: A typical day in which price rotates, data is displayed as a bell shaped profile with price on a vertical axis, and volume and time on a horizontal axis.
BELL SHAPED DISTRIBUTION: A typical day in which price rotates, data is displayed as a bell shaped profile with price on a vertical axis, and volume and time on a horizontal axis.
BRACKETED MARKET: Same as a balanced market.
BRACKETED MARKET: Same as a balanced market.
BRACKET RANGE: The price range between the UL and LL.
BRACKET RANGE: The price range between the UL and LL.
BREAKOUT: Price action for a particular time frame breaks through the UL or LL from a balanced market.
BREAKOUT: Price action for a particular time frame breaks through the UL or LL from a balanced market.
BREAKOUT TRADING: One of the techniques used in swing trading.
BREAKOUT TRADING: One of the techniques used in swing trading.
CLOSING RANGE: The range of the last 15 minutes of the globe session, for example: on a MP chart showing all 30 minute time segments starting at the day session open with letter A, the letter N would represent the last 15 minutes of maket action in the globex emini S&P.
CLOSING RANGE: The range of the last 15 minutes of the globe session, for example: on a MP chart showing all 30 minute time segments starting at the day session open with letter A, the letter N would represent the last 15 minutes of maket action in the globex emini S&P.
COMPARATIVE ANALYSIS: A comparison of one segment of volume at price to another of a past time frame, or a comparison of a shorter to a larger time frame.
COMPARATIVE ANALYSIS: A comparison of one segment of volume at price to another of a past time frame, or a comparison of a shorter to a larger time frame.
CONSOLIDATION: A pause in directional market action causing more than 5 TPO's to accumulate at a price.
CONSOLIDATION: A pause in directional market action causing more than 5 TPO's to accumulate at a price.
DISTRIBUTION: A Gaussian-type bell curve.
DISTRIBUTION: A Gaussian-type bell curve.
DUAL AUCTION MARKET PROCESS: The act of either buyers or sellers meeting each other's bids or offers in a responsive or innovative manner.
DUAL AUCTION MARKET PROCESS: The act of either buyers or sellers meeting each other's bids or offers in a responsive or innovative manner.
FALSE BREAKOUT: Price breaking through an UL or LL of a balanced market, but closing back within value.
FALSE BREAKOUT: Price breaking through an UL or LL of a balanced market, but closing back within value.
INITIATIVE TRADE: An aggressive participation in the market-place, for example: buy one emini S&P at the market or ask, or sell one emini S&P at the market or bid. In other words you drive the price action up by meeting the sellers offer or drive price action down by meeting the buyers bid.
INITIATIVE TRADE: An aggressive participation in the market-place, for example: buy one emini S&P at the market or ask, or sell one emini S&P at the market or bid. In other words you drive the price action up by meeting the sellers offer or drive price action down by meeting the buyers bid.
INITIAL BALANCE: The range of the first two 30 minutes time segments in the day session.
INITIAL BALANCE: The range of the first two 30 minutes time segments in the day session.
LIMITS: Upper and lower extremes of a bell-shaped distributiion in a balanced market for a particular time frame that identifies a price which has at least 3 TPO's that proceeds a price that has only 2 TPO's.
LIMITS: Upper and lower extremes of a bell-shaped distributiion in a balanced market for a particular time frame that identifies a price which has at least 3 TPO's that proceeds a price that has only 2 TPO's.
LIMIT ORDER: A resting order, also known as a passive or responsive interaction with the market. Price has to trade down to or through your price to get filled, for example: Buy 1 emini S&P at 1500.00 on a limit.
LIMIT ORDER: A resting order, also known as a passive or responsive interaction with the market. Price has to trade down to or through your price to get filled, for example: Buy 1 emini S&P at 1500.00 on a limit.
LOWER OCTANT: The lower 1/8 of the days or profiles range.
LOWER OCTANT: The lower 1/8 of the days or profiles range.
MARKET CONTEXT: Identity of the market condition or the phase of the market.
MARKET CONTEXT: Identity of the market condition or the phase of the market.
MARKET CYCLE: Price action rotation from balance to trend to balance
MARKET CYCLE: Price action rotation from balance to trend to balance
MARKET GENERATED DATA: Price activity recorded from the time & sales report real time.
MARKET GENERATED DATA: Price activity recorded from the time & sales report real time.
MARKET PROFILE: A CBOT product that charts price and volume over time with the use of alphabetical letters typically in the context of 30 minute time intervals.
MARKET PROFILE: A CBOT product that charts price and volume over time with the use of alphabetical letters typically in the context of 30 minute time intervals.
MARKET ROTATION: Rotating price action from UL to M to LL to M etc.
MARKET ROTATION: Rotating price action from UL to M to LL to M etc.
MARKET STRUCTURE: Identity of market action, including time, price and volume.
MARKET STRUCTURE: Identity of market action, including time, price and volume.
MINOR AUCTION: A shorter term auction inside a larger one, for example: a 5 day trend inside a larger 20 day auction.
MINOR AUCTION: A shorter term auction inside a larger one, for example: a 5 day trend inside a larger 20 day auction.
MULTIDAY PROFILES: TPO volume distributions over a particular time frame.
MULTIDAY PROFILES: TPO volume distributions over a particular time frame.
OCTANT: 1/8th of a markets range.
OCTANT: 1/8th of a markets range.
OCTANT TO MIDDLE: A responsive trade with asymetrical opportunities that begin at the OL (buy or sell) and offset at the M or the POC.
OCTANT TO MIDDLE: A responsive trade with asymetrical opportunities that begin at the OL (buy or sell) and offset at the M or the POC.
OCTANT FORM LIMIT: Typical responsive trade that risks 1/8th the range from a test of the UL or LL.
OCTANT FORM LIMIT: Typical responsive trade that risks 1/8th the range from a test of the UL or LL.
OFFSET: To flatten a current open position, for example if you bought, then to offset you would sell. If you sold, then to offset you would buy.
OFFSET: To flatten a current open position, for example if you bought, then to offset you would sell. If you sold, then to offset you would buy.
OPENING RANGE: The range of the first five 30 minute time segments in the day session, for example: with a segmented MP chart showing all 30 minute time frames with corresponding letters on a horizontal axis starting with A for the first 30 minutes, B for the next 30 minute interval, etc. Columns A,B,C,D,E would be included in this opening range of the day session emini S&P.
OPENING RANGE: The range of the first five 30 minute time segments in the day session, for example: with a segmented MP chart showing all 30 minute time frames with corresponding letters on a horizontal axis starting with A for the first 30 minutes, B for the next 30 minute interval, etc. Columns A,B,C,D,E would be included in this opening range of the day session emini S&P.
POINT OF CONTROL: The price at which the most TPO's are accumulated during a session.
POINT OF CONTROL: The price at which the most TPO's are accumulated during a session.
PRICE NODES: A price consolidation during a trend where price over time congests within a defined price range.
PRICE NODES: A price consolidation during a trend where price over time congests within a defined price range.
QUADRANT: 1/4th of the market range for a particular time frame.
QUADRANT: 1/4th of the market range for a particular time frame.
QUADRANT 1: Upper 25% of the price range in a balanced market.
QUADRANT 1: Upper 25% of the price range in a balanced market.
QUADRANT 2: Middle to upper 25% of the price range in a balanced market.
QUADRANT 2: Middle to upper 25% of the price range in a balanced market.
QUADRANT 3: Middle to lower 25% of the price range in a balanced market.
QUADRANT 3: Middle to lower 25% of the price range in a balanced market.
QUADRANT 4: Lower 25% of the price range in a balanced market.
QUADRANT 4: Lower 25% of the price range in a balanced market.
REFERENCE POINTS: Price points that have significance such as high volume areas, value areas, gaps, settlement price, opening price, negative volume areas, POC, UL, LL, etc.
REFERENCE POINTS: Price points that have significance such as high volume areas, value areas, gaps, settlement price, opening price, negative volume areas, POC, UL, LL, etc.
RESPONSIVE TRADING: Trading within a balanced market looking to enter at asymetrical price location above or below 1 standard deviationor of the mean, or in the UO or LO, for example: sell at the high or buy at the low in a rotating market.
RESPONSIVE TRADING: Trading within a balanced market looking to enter at asymetrical price location above or below 1 standard deviationor of the mean, or in the UO or LO, for example: sell at the high or buy at the low in a rotating market.
RESPONSIVE TRADE: A passive participation in the market, for example: buy one emini S&P at 1500.00 limit, or sell one emini S&P at 1500.00 limit. Price has to hit and probably trade through your limit price to get filled. In other words you let price action come to you.
RESPONSIVE TRADE: A passive participation in the market, for example: buy one emini S&P at 1500.00 limit, or sell one emini S&P at 1500.00 limit. Price has to hit and probably trade through your limit price to get filled. In other words you let price action come to you.
SWING TRADING: A longer time frame lasting from hours to days, with profit targets larger than those in daytrading.
SWING TRADING: A longer time frame lasting from hours to days, with profit targets larger than those in daytrading.
TIME FRAME PARTICIPANT: The traders time frame that they are willing to trade within, for example: day, swing, intermediate, or long term. Day time frames look for inner rotations from support or resistance. Swing time frames look for rotations within larger brackets consisting of days. Intermediate frames look for mult-month brackets for support and resistance, and the long term trading time frame follows trends on the largest time frames.
TIME FRAME PARTICIPANT: The traders time frame that they are willing to trade within, for example: day, swing, intermediate, or long term. Day time frames look for inner rotations from support or resistance. Swing time frames look for rotations within larger brackets consisting of days. Intermediate frames look for mult-month brackets for support and resistance, and the long term trading time frame follows trends on the largest time frames.
TREND: A market condition where price is moving directionally from a market that was in balance. Trend can be implied within many time frames. It must start by breaking out of balance within a particular time frame. That is the context one must define trend within.
TREND: A market condition where price is moving directionally from a market that was in balance. Trend can be implied within many time frames. It must start by breaking out of balance within a particular time frame. That is the context one must define trend within.
UPPER OCTANT: The upper 1/8th of a day's or profile's range.
UPPER OCTANT: The upper 1/8th of a day's or profile's range.
VALUE AREA: An area of price action in a balanced market that is one standard deviation of the mean. It contains 68.24% of the days volume action from the POC. This definition can apply to any time frame that is in balance with one main distribution.
VALUE AREA: An area of price action in a balanced market that is one standard deviation of the mean. It contains 68.24% of the days volume action from the POC. This definition can apply to any time frame that is in balance with one main distribution.
CONCEPTS FOR THE DUAL AUCTION MARKET PROCESS
CONCEPTS FOR THE DUAL AUCTION MARKET PROCESS
MULTIDAY PROFILES~This is a concept wherein you can gauge the context of a market within a given timeframe. We us 3 day, 5 day, 10 day, 20 day and 40 day profiles. Each day on a multi-day profile is of a different color, and for the day session does not include globex that covers the day and night sessions. the multiday profiles allow you to determine whether the market within a particular time frame is in balance or moving directionally. When a price during the day trades, a letter marks that TPO. That lettera is color coded for the day that it is trading within, and the letter also identifies the particular 30 minute time frame interval that the trade has taken place within. Note: Multi-day MP charts are not consistent regarding which letter represents any given time frame within the multi-day profile. Specifically, with an individual daily profile, the day session starts with "A" and ends with "N". Each consecutive letter represents a new 30 minute time segment, for example: "A" reflects trade thata occured in the emini S&P from teh open at 9:30 am eastern to 10:00 am eastern. "B" reflects the trade that occur between 10:00 to 10:30, etc. The caveat is the last period of globex after the S&P cash closes which is from 4:00 to 4:15 pm eastern, a fifteen minute interval that is identified by the letter "N".
MULTIDAY PROFILES~This is a concept wherein you can gauge the context of a market within a given timeframe. We us 3 day, 5 day, 10 day, 20 day and 40 day profiles. Each day on a multi-day profile is of a different color, and for the day session does not include globex that covers the day and night sessions. the multiday profiles allow you to determine whether the market within a particular time frame is in balance or moving directionally. When a price during the day trades, a letter marks that TPO. That lettera is color coded for the day that it is trading within, and the letter also identifies the particular 30 minute time frame interval that the trade has taken place within. Note: Multi-day MP charts are not consistent regarding which letter represents any given time frame within the multi-day profile. Specifically, with an individual daily profile, the day session starts with "A" and ends with "N". Each consecutive letter represents a new 30 minute time segment, for example: "A" reflects trade thata occured in the emini S&P from teh open at 9:30 am eastern to 10:00 am eastern. "B" reflects the trade that occur between 10:00 to 10:30, etc. The caveat is the last period of globex after the S&P cash closes which is from 4:00 to 4:15 pm eastern, a fifteen minute interval that is identified by the letter "N".
VOLUME HISTOGRAM~The white volume histogram is next to the multiday profile and shows volume at each price level, so that at a glance you can see low volume and high volume areas. You can also see the correlation of the TPO distribution with the volume histogram at all price levels.
VOLUME HISTOGRAM~The white volume histogram is next to the multiday profile and shows volume at each price level, so that at a glance you can see low volume and high volume areas. You can also see the correlation of the TPO distribution with the volume histogram at all price levels.
DISTRIBUTIONS~This is an accumulation of TPO's that span several price points. Most daily price action plotted through the use of Market Profile, are generally bell shaped resembling a Gaussian bell. One main distribution that is bracketing or within balance will show a valid defined volume area within a standard deviation of the mean for a particular time frame. If the distribution is not bracketing or in balance, it is simply a distribution that does not reflect a Gaussian curve, does not have a defined value area, but rather identifies various price nodes along the price scale.
DISTRIBUTIONS~This is an accumulation of TPO's that span several price points. Most daily price action plotted through the use of Market Profile, are generally bell shaped resembling a Gaussian bell. One main distribution that is bracketing or within balance will show a valid defined volume area within a standard deviation of the mean for a particular time frame. If the distribution is not bracketing or in balance, it is simply a distribution that does not reflect a Gaussian curve, does not have a defined value area, but rather identifies various price nodes along the price scale.
BALANCED DISTRIBUTIONS~Within any particular multiday time frame profile, a distribution of TPO's that have a bell-shape curve, rotation within the bracket from the UL to the M to the LL to the M to the UL, etc; form the basis for determining a valid value area. This marks the limits for a break out from that time frames consolidation phased to that of a directional or trending phase. Distributions that are in balance have a UL and LL and a M. Distributions that are not in balance do not have an UL or LL, but rather only have an UO and LO, since there is not a defined area for a breakout, hence no valid measurement for value.
BALANCED DISTRIBUTIONS~Within any particular multiday time frame profile, a distribution of TPO's that have a bell-shape curve, rotation within the bracket from the UL to the M to the LL to the M to the UL, etc; form the basis for determining a valid value area. This marks the limits for a break out from that time frames consolidation phased to that of a directional or trending phase. Distributions that are in balance have a UL and LL and a M. Distributions that are not in balance do not have an UL or LL, but rather only have an UO and LO, since there is not a defined area for a breakout, hence no valid measurement for value.
UPPER AND LOWER LIMITS~These are the extreme price points within a balanced or bracketing market. These extremes are defined within a balanced distribution where the TPO volume at a particular price fall from having 3 TPO's to 2 TPO's or less in the three and five day multi-day profiles. For the multi-day profiles of more than 5 days such as the 10, 20 and 40 day profiles, these extremes are defined within a balanced distributions where the TPO volume at a particular price falls from having 5 TPO's to 4 TPO's or less. Since there has to be a balanced market for the UL and LL to even exsist, the UL and LL mark an area at price where on of two things could occur: a breakout from balance, or a start of a new rotation within the bracketing market back toward tehe POC.
UPPER AND LOWER LIMITS~These are the extreme price points within a balanced or bracketing market. These extremes are defined within a balanced distribution where the TPO volume at a particular price fall from having 3 TPO's to 2 TPO's or less in the three and five day multi-day profiles. For the multi-day profiles of more than 5 days such as the 10, 20 and 40 day profiles, these extremes are defined within a balanced distributions where the TPO volume at a particular price falls from having 5 TPO's to 4 TPO's or less. Since there has to be a balanced market for the UL and LL to even exsist, the UL and LL mark an area at price where on of two things could occur: a breakout from balance, or a start of a new rotation within the bracketing market back toward tehe POC.
BRACKET QUADRANT~Since a quadrant is 1/4th of the day's or profiles range, once the price breaks through the UL or LL from a balanced market but then returns to teh previous distributions bracket quadrant, the breakout can be generally labeled as a false breakout.
BRACKET QUADRANT~Since a quadrant is 1/4th of the day's or profiles range, once the price breaks through the UL or LL from a balanced market but then returns to teh previous distributions bracket quadrant, the breakout can be generally labeled as a false breakout.
MIDDLE~This can also be known as the POC. It represents the price at which the most trade has occured over time. The middle is a general profit target for responsive trader that have acquired asymmetrical trade location at the high or low looking for price action to revert to the mean, or POC.
MIDDLE~This can also be known as the POC. It represents the price at which the most trade has occured over time. The middle is a general profit target for responsive trader that have acquired asymmetrical trade location at the high or low looking for price action to revert to the mean, or POC.
PRICE NODE~This is an area where TPO volume is accumulated, acting as a pause in a trending market. Sometimes this pause is also the start of a new balance and the end of a trend; sometimes though, they are just a pause in a directional move on a daily basis or multi-day trend move.
PRICE NODE~This is an area where TPO volume is accumulated, acting as a pause in a trending market. Sometimes this pause is also the start of a new balance and the end of a trend; sometimes though, they are just a pause in a directional move on a daily basis or multi-day trend move.
CONSOLIDATION~This is an area of TPO volume that begins to form a balance over time frames greater than two days if you are looking at daily profiles. On an intraday basis, consolidation could be defined by any price point that has 5 TPO's or more accumulated.
CONSOLIDATION~This is an area of TPO volume that begins to form a balance over time frames greater than two days if you are looking at daily profiles. On an intraday basis, consolidation could be defined by any price point that has 5 TPO's or more accumulated.
POINT OF INTEREST REGARDING THE CLOSE AND BRACKETING MARKETS~Once a market breaks out of balance moving past the UL or LL, if it closes back within the original distribution it was a false breakout. If the market closes within the distributions octant, it may be a sign that the market is reading to start moving directionally.
POINT OF INTEREST REGARDING THE CLOSE AND BRACKETING MARKETS~Once a market breaks out of balance moving past the UL or LL, if it closes back within the original distribution it was a false breakout. If the market closes within the distributions octant, it may be a sign that the market is reading to start moving directionally.
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