ATMASphere Aug 2014
ATMASphere Aug 2014
ATMASphere Aug 2014
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The Auction<br />
The process of auction, Imagine a real auction of coffee beans. For context<br />
let's say, price of coffee beans keep increasing since last month from 7000<br />
to 7800. Today for the auction price open at 7800. The process of bidding<br />
started. Auctioneer set the price at 7820, open call was too high and didn't<br />
get a raise from the men who participated in the auction. Then auctioneer<br />
says 7818, 7816, 14... The up auction of the coffee beans since last month<br />
was over. Sometimes, in bullish environment price gets accepted at open<br />
and start auctioning up from 7820 to 7830...40. Sometimes it goes below,<br />
and then gets accepted as underlying fundamentals are strong and there is<br />
a demand for the product. Prices get accepted at lower range and start<br />
auctioning back and forth. Market participants want to purchase coffee<br />
beans to provide demand of their own customers, so they start getting<br />
anxious and they jump in the auction and start raising the price, in our<br />
example let's assume price went down from 7800 to 7560 and it started<br />
auctioning back and forth in this range. And when market participants<br />
started raising the price it went up from 7560 back to 7800. Same process<br />
has been described in this chart with market profile. Each alphabet is called<br />
as TPOs. That is Time Price opportunity. It is bit technical, and it is basic<br />
building block of Marketprofile, so we will cover that in second chapter.<br />
That's it for now.<br />
AUGUST <strong>2014</strong> ATMASPHERE | 19
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