@ 11/12/2015 Chart.patterns/.projections/opinions?, page-367

I see @martis speaking about equilibrium in an earlier post so decided to have a check on the Price Histogram (or Bell Curve), Vol / Price overlay and then leave the overlays on my Ichimoku.

Couple of interesting points on there. Unfortunately the indecisive spinning top played the other way and obviously a drop thru the Kumo today but upside is the first Gap closed but now another slightly lower but coming into range.

Where to from here I guess...well, the first chart is a std candlestick chart with a bell curve, price / vol overlay (showing at what prices vol was being traded) & shows the 2 points of control where trading tends to be attracted to. So, will the SP head for the next Gap which links in with bottom POC and then bounce from there and look for the flat bottom of the Kumo as next resistance? Or, will holders see a move back up from here and break back thru the Kumo whilst resistance is on the thin side?

Link below if anyone wishes to read up on it.

https://www.mql5.com/en/articles/17

A couple of key parts say:

Market Profile measures the horizontal market movement through the vertical one. Let's call that "equillibrium" through "disequillibrium". This relationship is the fundamental organizing principle of the market. A trader's whole style of trading may change depending on what part of the equilibrium/disequilibrium cycle the market is in. Market Profile can determine both when the market is going to shift from equilibrium to disequilibrium and how big the move is going to be.

The two basic concepts of Market Profile are:

1. The market is an auction, and it moves in the direction of the price range where the supply and demand are more or less equal.
2. The market has two phases: horizontal activity and vertical activity. The market moves vertically when supply and demand are not equal or they are in disequillibrium, and horizontally when they are in equilibrium or balanced.

What does POC show? The price that is remembered by most of traders. The longer market is traded at this price, the longer market remembers it. Psychologically POC acts as a center of attraction.