Thanks for the kind words. Peter Steidlmayer used to teach that the 2 most important points of information were to know the balance of trade/order flow and to identify and locate strong bursts of commercial buying or selling. The market profile as a tool is somewhat dated and is certainly not as effective as some of the tools that have been spawned by the current technical evolution in Market Profile Theory. The spike in the middle graph attached represents a measure of certain trade velocities taken in the millisecond time frame and notes situations where the velocity is beyond that of human traders or a combination of human traders hence signifying commercial, computer executed trade. The histogram is a moving window of the balance of trade. The divergence signifies that the buying volumes underneath the last price surge were weakening thus signifying that the buyer was exhausting himself. When the buyers become exhausted, there are only sellers left and a top is created as it is in the example below. Thanks again for the kind words.
Do you work for Pat/UrmaBlume? Are you the banned Pat/UrmaBlume? Or just a really happy subscriber? Chart is from the banned UrmaBlume. He's been pushing his wares at TL and now those magical charts show up again on ET. Here's the best part -- Pat went on and on @ TL about how his stuff was so great, it wasn't for sale, etc. etc. Guess what? Now you can buy the magic for $1400/yr. Just the standard 'I got the holy grail for sale' crap. Once again - if it was so good, why on Earth would it be sold for $1400/yr? Will you post actual real-time charts or just the pretty after the fact charts that Pat loves to post? BUYER BEWARE OF PAT DITTMAR AKA URMA BLUME
"ES traders never really know if they are seeing a pullback against the "trend" or a complete out-of-blue reversal that's running deep the other way." so they admit its damn near impossible to read but claim to be minting money nonetheless. interesting. must be talking about everyone but themselves, who can divine all, see all, and know all.
hft makes no sense whatsoever... the most bearish news in the world hits and the markets shoot up the most bullish news in the world hits and the markets shoot down the last 5 years things have gotten very, very backwards
the mkts move in whatever manner will make the hft manips money. dont let them tell you anything else
Interesting observation. Most large short-term (the jump component, ~ 3 to 20 minutes) moves in the stock market do seem to originate in the Forex markets. Half-day and lower frequency stock market large moves (longer term jump component), on the other hand, are definitely idiosyncratic. Diffusion component of stock returns seems uncorrelated.