Merged Profile

Below is the result from a 4 day merged profile as this is where we most recently have consolidated during holiday trade. The Value area high of this merge is 872.50 and the Value area low is 59.50. You may also notice that the 863.50 price has had the most trade through so far. This chart doesn't include today's trading. I think that 59.50 - 63.50 is the area we need to beat for any upside to take hold as we have the Va low and that Volume node. Current overnight high is 73.50 so it was fairly close to the merged VA high of 72.50.

In today's trading we have single prints created to the downside and through that high volume node. I'm skeptical because of the holidays and low volume but as most know we will trend many times after consolidations. I'm not sure if this counts. Anyway it's been fun firing up the old MP software for a change.

To make a long story longer: That 859.50 - 863.50 is the critical zone to watch.

Bruce,
Do you allways merge days when they overlap?
Is this practice from any of the Dalton's books?

Hi Ajm,

I'm in the process of trying to fiqure out these longer term profiles...I think it makes sense to merge overlapping value but I'm not sure yet if it is any better than looking at the running 5, 10 and 20 day profiles to see what areas are important.

At this point I am also not convvinced yet of the importance of the Value areas of these merged profiles. Somestimes they make sense to me but other times they drive me carzy as there is that damn element of discretion at fiquring out which profiles to merge...some like using a running weekly.....( so up to Wednesday we would have only 3 days) while others will use the running 5 day....so these will create two different Value areas ...how do we know which one to really use.....

I think in the end I will probably end up not using the Value area from the longer profiles and just use the longer term stuff to point out high and low volume areas.....

Not the best answer but the best one I have so far

quote:

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Originally posted by meyer99

Bruce,
Do you allways merge days when they overlap?
Is this practice from any of the Dalton's books?

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I haven't seen this from Daltons work...perhaps someone can help us out here...

the 2 charts u posted in 1 reply on 1/30,page 8,the upper 1 has a deep cleavage at 848-851,on these lomger mp charts i find those areas to be magnetic and act as supp/res,similar to a gap fill

quote:

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Originally posted by BruceM
I think in the end I will probably end up not using the Value area from the longer profiles and just use the longer term stuff to point out high and low volume areas.....

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cheers bruce....nice charts

You know its very interesting how there are sooooo many ways to profit from the market, the hard part is finding one that works with each indivduals....bell curve for lack of a better word. The monthly DVA is just one of the most heavly wheighted tools I use. And I use it almost daily.

joe,whats dva stand for

Interesting day today...we broke out of the High of the composite and sold off after a failed attempt at the Hour high breakout. Note how the selloff stopped at our merged point of control at the 825 area.

We have the POC from today near the highs, a close outside of value and beyond the 60 minute low...I feel they will now try for the other end of the composite. Break out traders will try to aggressively push out at the 814 - 816 area......as much as I want to see higher trade I can't ignore the signs.....here is the chart




and here is the now merged 4 day chart......

Thank you Bruce.
Charter the Monthly DVA is calculated with a chart software or with excel? I have been looking around for an excel that will do that (and also a Yearly WVA but could not find anything, and my excel skills are not good enough to do it on my own. Any ideas?

DVA stands for Developing Value Area , Iowa...so we can watch the VA's form in the time frame we use.......real time TOO! did anyone join me on the 16's long? Volume diverge an $tick diverge

Joe doesn't get here that much so here is a link for some ideas he uses.....Meyer...Esignal he was using

http://www.mypivots.com/forum/topic.asp?TOPIC_ID=2805

Here is the test of the key Value area of the merged profile and the rally today



here is how we look when it all gets merged

We had a break out up on yesterdays high Volume fed announcement.....now we need to see if we can attract Volume above...my feeling is that they will fail on this breakout and we will get daily closes back below 867.....Sure hope I'm wrong for the longer term players like myself....I'll get a chart later