Weekend chart comparison 3/7/10

Compare the 2 charts below one includes space for time defalt( bar chart) and the other dose not(profile chart).
The profile chart compresses time to show both volume and value.

There are 100 : 30 minute bars contained in this trading bracket 40% of those time slots have traded at the control price of 4219. Above this level prices have been deamed to expensive and below too cheep.From fundamental knowlege we know that to profit we need to buy below value and to sell above it, the market smiply facilitates this process.
Minus development is a force in the market, it is defined by where the market will not trade. The more time the market spends filling horozontal time slots the more likely it is that the minus development will be tested.However current price action suggests that the minus development above the market is still valid.A mav cross followed by a failed auction late in the session suggests the support at 4205 will soon be tested.
Accepting prices below this support level adds a further bearish tone to price action, and a break away from background volume could see the market resume a vertical faze to the downside.On the other side if support holds then it becomes more likely that the horozontal nature of price action will prevail and we could see an attempt to re-trace and fill the space above.It is also important to note that the current structure(a selling struture ) is within the value area of the background structure , telling us that for now the background is still in control and capturing price.When trading we should all be alert to the fact that we have the opportunity to make greater returns when the market is in a vertical faze(non-random) as apposed to the horozontal(random).85% of the time the market is horozontal,leaving us with just 15% of time to reap the best rewards.






Compare the two charts the levels are the same .
A reference to my blog can be found on the ASX website charting libary.
Topic: Market Profile