[1/X]
Basics of Auction and Profile Distribution - terms like Market Profile and Volume Profile simplified
What is Profile Distribution?
Distribution is the process of trading activity that takes place in the market auction. Some also know it by a consolidation or range.
[2/X]
A Distribution tends to define the fairest area/ price where the current auction has been taking place.
However, during some trading sessions, after the market forms a distribution around a certain fair price/ value, something changes.....
[3/X]
It could be anything - some big money stepping in deeming the price to be auctioning below value, news, event ,etc.. we don't know that and it doesn't matter.. what we are interested in is what happens after....
[4/X]
This sudden change causes the market auction to locate a new fair price and distribute around the new found fair price. Since this is a distribution separate from the initial one that had formed during the early part of the day we may call it the second distribution
[5/X]
Day as a whole could be called a double distribution day..
Let's move to what happened today
#MarketProfile #VolumeProfile
[6/X]
It seems something changed for a second time during the day and consequently the fair price also changed and a third distribution also formed (although in the later part of the day which is suspect sometimes).. this can also be called as a triple distribution day
[7/X]
The terminology is not important but what is important is to consider this auction that took place moving forward.
Key takeaway: The third distribution on the top that formed during the later part of the day may define what happens tomorrow. Good luck!!!
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