Detailed chart analysis of past trading action Identified where reversion and break-out trading occurred
The image below is the chart of British Pound Dollar futures contract.
It is a multi-days chart showing Composite Time Price Opportunity (TPO) Profile on the left side
and Composite Volume Profile on the right side.
This is an unique charting technique and requires some explanation on how to read the chart.
This chart shows more information than the conventional graphical chart. Reading this chart will stimulate
your whole brain. The left hemisphere of your brain which is responsible for logical, rational and analytical
functions will be engaged by the numerical data portion of the chart. The right hemisphere of your brain
which is responsible for the intuitive and subjective functions will be engaged by the graphical portion of
the chart. This gives you an advantage of engaging your whole mind when it comes to trading instead
of using just a section of it.
Showing
Time Price Opportunity (TPO)
Profile side-by-side to Volume Profile gives you a quick synopsis of
- which price levels received the most trading volume
- at what time during the trading session had it traded there
- how many times it had backfilled to those price levels
- where reversion trades worked for traders fading the move as price traded back and forth to form a cluster node
- see where and when break-out trades occurred as price spends very little time trading there
(Click on image below to bring up thumbnail and enlarge the chart.)
Legends:
- VAH = Value Area High
- VAL = Value Area Low
- POC = Point of Control (i.e. where most of the trading volume had occurred)
- TPO Count = Where trading has spent the most time
- VWAP = Volume-Weighted Average Price
- BOO = Break-out Octet. Minimum stop loss risk on false break-outs
- BDO = Break-down Octet. Minimum stop loss risk on false break-downs
- Each TPO letter represents half hour intervals
- TPO { abcdefghijklmnop } are the Asian Session
- TPO { qrst } are when both Asian and European Traders are awake, alert and online
- TPO { uvwx } are the remaining European Session
- TPO { yzVWXYZABCDE } are when both European and American Traders are awake, alert and online
- TPO { FGHIJKLMNOPQ } are the remaining American Session
Country Profile and Fundamental Analysis
The United Kingdom is the sixth largest country in the world. It is actually four countries combined into
one. The four countries are England, Northern Ireland, Scotland, and Wales.
United Kingdom's currency is the Pound Sterling and it is represented by the symbol £. The Pound Sterling
is also used as a reserve currency by other governments. It is the third-largest reserve currency after the
U.S. dollar and the Euro.
The United Kingdom has a somewhat unusual political/monetary relationship. It is part of the European
Union but it chooses not to be a part of the Euro Zone. The citizens of United Kingdom decided that they
do not want to adopt the Euro currency.
Being a member of the European Union, the United Kingdom opens up its borders to inflow of cheap skilled labor
from other European Union nations. Citizens of the European Union have the right to live and work in any
member state which includes the United Kingdom.
|