Market Profile Density x Time

Discussion in 'Strategy Building' started by Spectre2007, Mar 1, 2017.

  1. The average length of consolidation patterns in any derivative relative to degree of breakout should be measured to quantify when risk/reward favors entering the market.

    An excellent way to measure density, is take a price series of a certain range and have the comp trade at every price increment, create price points where costs were the greatest. Usually this ends up being the market profile peak.



    https://en.m.wikipedia.org/wiki/Market_profile
     
    Last edited: Mar 1, 2017