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1. Am Chart 40 TAS PRO VAP Map TAS PRO Floaters and TAS PRO Navigator daily chart of Euro Spot showing hard right edge of screen magenta dotted line and projection area to the right of the line Trading Concepts Markets are either balanced or imbalanced and VAP Map clearly illuminates these two conditions by exhibiting fat and skinny profiles Fat profiles reflect a market that is moving slowly and horizontally through time in a well defined price range a balanced market Skinny profiles reflect a market that is rapidly and vertically through price an imbalanced market 82 Clearly knowing which of these two mutually exclusive states the market is in dictates our basic trading tactics In a balanced market we buy the lows and or short the highs and in an imbalanced market unless we are attempting a counter trend trade we trade in the direction of the major capital flows that are propelling the market vertically Market Observations e VAP Map is displaying a balanced market state e The first red support floater is demarcating support at the unfair low of the VAP Map profile e Wecurrently have a relatively wide range down candle that has so far not closed below the confluent areas of the VAP Map and the first Floater support line Trading Plan 1 On the right side of the chart we have extended the Floater lines to establish a short term tra
2. At TAS Professional we are traders at heart software engineers by training and trainers of market participants by choice We believe Education provides a foundation and that a live responsive supportive and interactive environment such method for learning but knowledge as the TAS PRO Persistent Chat room is one of the best environments comes through experience to learn in Albert Einstein once said Example isn t another way to Pete Steidlmayer Creator teach It s the only way When it comes to the markets we couldn t of Market Profile agree more Here is a list of our basic trading guidelines At all times capital preservation is job 1 for all market participants You must develop a written objective rules based plan for managing risk vs reward No exceptions We believe that earning follows learning not the other way around Although each of us participates in the market with different goals and objectives we are realistic about the inherent risk in the marketplace and work hard not to get too far ahead of ourselves We pride ourselves in having developed a rules based methodical approach to the markets We believe that price and pattern analysis alone without concurrent volume analysis misses a lot of the picture in trading Price is the messenger not the message Every trade or trade application has an underlying context a particular time frame that is being displayed on a chart Learning t
3. market generated data By distilled we mean data that has been stripped of the unwanted market noise and presented to traders as information in a screen based format that s clearly presented intuitive and most importantly actionable At TAS Professional we believe there are few chart based market presentation formats that effectively present what a market is trying to do and either succeeding or failing to do as those developed by J Peter Steidlmayer in his creation of Market Profile in the 1980s Market Profile is a statistically based method of aggregating market generated data and presenting it in an informational profile format that reveals the true auction that is taking place in a market This flexible format allows a two dimensional view of the markets that clearly illuminates the relationship of two mutually exclusive phases of market activity taking place e Horizontal price development which is a fair price area in the market where supply and demand are in relative balance accommodating both buyers and sellers e Vertical price non development which is an unfair price area in the market where either supply or demand are in relative imbalance accommodating either buyers or sellers but not both At TAS Professional we instinctively knew that Market Profile provided the right answers we wanted to know about the market But one of the challenges inherent in Market Profile was the steep learning curve
4. time at price is a core concept that is used to create frequency distribution histograms 106 TPO From classic Market Profile theory an acronym for Time Price Opportunity or That Price Occurred A TPO is a letter designation in a Market Profile chart that shows at which prices trade occurred thereby building out the statistical distribution histogram trend day In Market Profile nomenclature a market day that is imbalanced on the daily time frame two phases of market activity A simple model for describing the only two mutually exclusive movements a market can make horizontal or vertical movements unconstrained by liquidity When there is excess liquidity in the market favoring either the long side or the short side of the market enough to cause a vertical move we say the market is unconstrained by liquidity Trending markets are unconstrained by liquidity Also see constrained by liquidity unfair high The unfair high is the area where price rallies to the up side to shut off buying It is an area where buyers feel the price is too expensive unfair low The unfair low is the areas where price rallies to the down side to shut off selling It is an area where buyers perceive the price is inexpensive value area From classic Market Profile theory the value area of a profile map e g VAP Map Swing VAP TAP Map and Swing TAP contains 70 of the volume transacted in that particular developed section It is mea
5. Steenbarger Elder Cohen Trading in the Zone The Disciplined Trader The Inner Game of Trading Creating the Winner s State of Mind Trading to Win The Psychology of Mastering the Markets Trading in the Zone Maximizing Performance with Focus and Discipline Enhancing Trader Performance Proven Strategies from the Cutting Edge of Trading Psychology The Psychology of Trading Tools and Techniques for Minding the Markets Trading For a Living Psychology Trading Tactics Money Management Fear Greed amp Panic The Psychology of the Stock Market Trading Techniques amp Tactics Schwager Schwager Stock Market Wizards Interviews with Top Stock Traders The New Market Wizards Conversations with America s Top Traders 101 Market Profile Market Structure Auction Market Theory Market Profile is a fairly complex subject that we have simplified through our TAS PRO Approach to Trading and the TAS PRO Indicator Suite our world class suite of trading indicators and timing signals For those who wish to have a more in depth understanding of Market Profile theories and applications we recommend that you read these next three books in the order presented as one book builds on the other s background CBOT Dalton Dalton Steidlmayer Steidlmayer The Classics Lefevre Taleb Lewis Edwards Eng Market Profile Handbook Pages 3 10 A quick overview of basic concepts http www cbot com cbot docs
6. 4 5 6 11 12 14 16 17 19 28 96 97 100 102 Time frame 12 15 17 19 20 22 25 32 35 44 47 50 53 56 58 63 65 67 74 76 78 85 95 106 Time series analysis 11 Trade timing 13 Trader Consulting 99 Trading a Balanced Profile 81 Trading a Breakout from a Balanced Profile 84 Trading a Swing Reversal 86 Trading Application Concepts Using the TAS PRO Indicator Suite 80 Trading Application Managing a Swing Position 89 Trading Application Trading a Balanced Profile 81 Trading Application Trading a Breakout from a Balanced Profile 84 Trading Application Trading a Swing Reversal 86 Trading Application Trading into a Profile Hole 93 Trading Applications for TAS PRO Floaters 59 Trading into a Profile Hole 93 Trading plan 16 82 Trading setups 6 16 Trending 21 23 24 27 28 47 51 55 58 59 61 62 67 76 85 90 103 106 112 Two phases of market activity 13 24 26 U Unfair lows 90 93 94 V VAP Map 32 33 34 35 38 41 63 71 81 82 83 84 85 86 87 88 93 94 95 105 106 VAP Map Applications 34 VAP Map Configurable Inputs 33 VAP Map Display Settings 33 VAP Map Specifications and Applications 32 Velocity ROC 5 76 77 Velocity ROC Applications 77 Velocity ROC Display Settings 76 Vertical market 21 Vol Delta Applications 74 Vol Delta Configurable Inputs 73 Vol Delta Display Settings 74 Vol Delta Specificatio
7. Accurately assess the reward to risk characteristics of an opportunity for proper risk management Help you evaluate what s next in terms of high probability moves in the market Precisely determine entries potential targets and precise stops for market opportunities Gain better insight into the relative speed of directional market movements Know where the market either needs to pause or needs breathing room to make the next move Keep focused on a practical trade premise based on objective analysis Stay in tune with the pulse of the market There are certainly many more benefits to this multiple time frame analysis but the former statements provide a good starting point for objective analysis There Are Only Two Things a Market Can Do Within the context of a particular time frame and with few exceptions there are only two things a market can do Markets either move horizontally non directionally WAYAVAYAN sideways Markets move vertically directionally up or down OR PeF gi i 21 For illustration purposes we treat up or down market movements as the same in the sense that they move along the same vertical plane in the price axis We call this the two phases of market activity Definitions The Two Phases of Market Activity 1 A horizontal market is one that exhibits relatively equal price pivot highs and relatively equal price pivot lows In the following three diagrams price pivots are denoted by gr
8. Before deciding to trade and or invest you should carefully consider your objectives level of experience and risk appetite The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not trade or invest money that you cannot afford to lose This publication may contain references to past results Past results are not necessarily indicative of future results Investing and trading are subject to numerous implicit and explicit risks none of which TAS Professional can control or influence You therefore acknowledge and agree that all investment decisions you may make including decisions that take into account or rely on any information provided or made available by or from the TAS PRO Tools are yours and yours alone and are made solely at your own risk You should be aware of all the risks associated with trading and investing and you should seek advice from an independent financial advisor before making any trading or investing decisions In the event that you trade or invest you agree to bear complete responsibility for your investment research and decisions and acknowledge that TAS Professional has not and will not make any specific recommendations to you upon which you are entitled to rely The information in this publication represents impersonalized disinterested opinions and commentary of TAS Professional and its employees and agents and does not constitute a solicitation or recom
9. associated with gleaning the right information from the profiles And there was an additional subjectivity in its interpretation that left us wondering Is there a better way to use the core concepts of Auction Market Theory and Market Profile and yet simplify the presentation to its actionable components It was the need to overcome these inherent challenges that lead us to develop the TAS PRO Indicator Suite of trading tools After seven years of ongoing development we developed this suite of trading tools that have allowed us our traders market analysts and clients around the world to make some very good market calls Properly reading and interpreting the market is an endeavor that is as unique of an experience to one person as it is to another However when it comes to trading tools market participants want them to timely and accurately perform six main functions e Provide intelligence and insight into the broader market structure while at the same time helping us pinpoint precise entries e Speed up analysis of trading conditions in multiple time frames and quite often in multiple trading instruments e Improve accuracy in reading the market s subtle clues of imminent change in market activity regardless of time frame being observed e Improve decision making ability by offering multiple and simultaneous views and perspectives of varying market conditions and environments 13 Tightly manage risk in all trades while preservin
10. s rare when you consider that on a smaller time frame there is most likely some form of transition from fast to slow then slow to fast then faster Because one phase follows the other we can illustrate this slow to fast then fast to slow market movement as follows a Amarket is horizontal and trading slowly through time MWAV V b A supply imbalance occurs in the market which causes the market to move either higher W or lower in price 26 c Supply and demand come back into balance after either of the prior vertical price movements and the market resumes a slow and horizontal trading range WA v YAV v WWV V V R d A supply imbalance occurs in the market again which causes the market to move either higher or lower in price WAV Pr wn vw L This simple diagram flow depicts the simple continuous ebb and flow of the two phases of market activity Accurately identifying the two phases of the market is a valuable skill and once obtained makes the practice of trading simple because it simplifies and provides clarity in two ways 1 The two phases are mutually exclusive 2 The two phases are traded differently Therefore once you know which of the two states are being exhibited then you know how to adapt how your trading to the current market conditions To paraphrase Pete Steidlmayer Stop predicting what the market might do Rather trade what the market is actually doing Align yourself and your tr
11. the lowermost of the three lines of a dynamic profile Also see breakout confirmation bias A common cognitive error where traders to favor data and information that confirms their preconceived notions or hypotheses about the market regardless of whether the information is true As a result traders selectively gather and recall information and interpret it in a biased way constrained by liquidity A relatively equal amount of trade occurring on both the long and short side of the market causes the market to trade horizontally through time in a relatively fixed price range A market is thus constrained by liquidity because buying is met with selling and selling is met with buying in near equal amounts Non trending markets are constrained by liquidity Also see unconstrained by liquidity dynamic profile Dynamic profiles are a TAS PRO proprietary method for displaying Market Profile based information in a simple screen based display metaphor Dynamic profiles feature three horizontal lines which from top to bottom are the unfair high the point of control and the unfair low Dynamic VAP and Dynamic VAP feature dynamic profiles fat profile see balanced profile 104 Floaters An abbreviated form of TAS PRO Floaters a TAS PRO Indicator that displays price compression levels that adjust based on time or swings depending on the indicator Also see TAS PRO SwngFloaters Four Steps of Market Activity The sequence of events that
12. a Floating Wall then we observe price action as it comes into this support demand area If the market is up trending then an entry would be to buy the security when it trades into or at the Floating Wall e Short Entry If price is trading below a Floating Wall then we observe price action as it comes into this overhead resistance supply area If the market is in a down trending day then an entry would be to sell the trading instrument when it trades into or at Floating Wall 60 5 Day Chart W E51 Index CME E Mini Standard amp Poor s Mi Resistance 1 REESE Mi Resistance 2 1306 9166 Bi Resistance 3 1308 9166 E Support 1 1304 0834 E Support 2 1302 9166 H Support 3 1300 9166 I Pivot Price Projection 1304 9166 Wi Current Swing s Open 1305 25 H Prior Swing s Close 1305 25 E TAS PRO Pivot 1304 9166 06 30 07 00 26 Jan 2011 Chart 23 TAS PRO Floaters with TAS PRO Floating Wall formation see red arrows on 5 minute S amp P futures Emini S amp P ES1 5 min Candle Chart TAS PRO Floaters 1 8 5 Da pndard amp Poor s 1303 25 1306 0834 ace 1306 9166 H Resistance 3 1308 9166 H Support 1 1304 0834 E Support 2 1302 9166 H Support 3 1300 9166 EE Pivot Price Projection 1304 9166 H Current Swing s Open 1305 25 H Prior Swing s Close 1305 25 E TAS PRO Pivot 1304 9166 12 30 28 Jan 2011 Chart 24 TAS PRO Floaters with TAS PRO Floating Wall formation see red arrows on 5 minute S amp P futures 61 Floaters S
13. an offer to buy or sell any financial instruments Opinions expressed herein are subject to change without notice and TAS Professional LLC is under no obligation to update or keep the information current This book may not be reproduced or distributed in any manner without the permission of TAS Professional LLC TAS Professional is not registered or licensed with any state or federal agency such as the Securities and Exchange Commission or the Commodity Futures Trading Commission Further TAS Professional is not a member of any financial services industry self regulatory organization such as the National Futures Association or the Financial Industry Regulatory Authority Because of this TAS Professional is not subject to many of the regulatory requirements that are applicable to registered or licensed financial participants This publication contains descriptions of various trading and investment tools methods and strategies collectively TAS PRO Tools which may be useful in trading and investing in futures equities foreign currencies and options markets collectively Investments The risk of loss in trading Investment can be substantial You should therefore carefully consider whether such trading is suitable for you in light of your financial condition When trading on margin you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position
14. area When price is trading inside Dynamic TAP profiles it depicts an interim state of market balance an area of trade that is deemed fair to both sides New profiles form after the market moves away from balance to imbalance when new valuations are detected from market data When price goes into imbalance either a new set of Dynamic TAP profiles will form or price will be pulled back into the existing profiles US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Dynamic TAP P126 00 P 124 00 f 118 00 Jan 31 Chart 14 TAS PRO Dynamic TAP on daily US 10 year T note futures 48 Dynamic TAP Configurable Inputs Signal Strength Sets the signal strength to be considered when forecasting market swings 1 weak 2 medium 3 strong Default 2 Momentum Look Sets look back period for the momentum oscillator from which swings are Back derived Default 7 Look Back Period Sets the number of bars of data used to create the parameters of the Dynamic TAP profile Default 7 Dynamic TAP Display Settings Unfair High Top line indicates the unfair high area red pantal Center line indicates the point of control POC light blue Control P E Unfair Low Bottom line indicates the unfair low area light green Dynamic TAP Applications When price is bracketed inside a Dynamic TAP profile the top line is considered a supply area resistance and the bottom line is considered a demand area support When price m
15. control The point of control is the area where the most volume or trade had occurred at price in a profile Ona rotational day the market will trade up and down around this point It s important to remember that from an intraday context the point of control is dynamic in that it determined as profiles build The green line on the VAP Map Swing VAP TAP Map and Swing TAP is the point of control price pivot high or low see pivot profile Profile is synonymous with a histogram generated by VAP Map Swing VAP TAP Map and Swing TAP Also see histogram rotational day In Market Profile nomenclature this is a non trend day a market day that is balanced or trading ina range and is characterized by a fat profile skinny profile see imbalanced profile swing see swing high and swing low swing high The traditional technical definition of a price swing high is a price formation where a peak high in price is preceded and followed by a lower high on both sides of a peak price high Also see pivot swing low The traditional technical definition of a price swing low is a price formation where a peak low in price is preceded and followed by a higher low on both sides of a peak price low Also see pivot TAP see time at price time at price TAP A method for dynamically calculating and displaying aggregated trading data based on how often trade occurs at discreet price levels Based on Auction Market Theory and Market Profile
16. distribution and have their basis in Auction Market Theory and Market Profile The maps reflect the price action relative to time traded at price within the delineated map area e Although suitable for all types of securities Swing TAP was specifically designed for profiling securities that do not have a volume component such as spot Forex Also see Bloomberg Cheat Sheets for VAP Map Swing VAP and TAP Map as there are subtle but important differences between these tools e Gradient rich intuitive color coded display delineates where volume is accumulating or not accumulating at price e Provides key insights as to where the market is likely to move slowly and develop horizontally through time versus where the market is likely to move rapidly and vertically through price levels e Multiple instances of right facing and or left facing profile Swing VAPs of different look back swings may be placed on the same chart e Customizable horizontal line resolution with key area highlights US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Swing TAP Chart 10 TAS PRO Swing TAP on US 10 year T note futures 42 Swing TAP Configurable Inputs Signal Strength Momentum Look Back Density Map Starts at Swing Map Ends at Swing Extend High Volume Node Sets the signal strength to be considered when forecasting market swings 1 weak 2 medium 3 strong Default 1 Sets look back period for the momentum o
17. handbook pdf 1 Mind Over Markets 2 Markets in Profile Profiting from the Auction Process 3 Steidlmayer on Markets 2 Edition After reading the first three books anything you read written by this market sage is highly recommended He is a gifted trader and market theorist Reminisces of a Stock Operator Fooled by Randomness The Hidden Role of Chance Liar s Poker Rising Through the Wreckage on Wall Street Technical Analysis of Stock Trends Trading Rules Strategies for Success 102 Appendix B The TAS PRO Customer Care Center At TAS Professional we believe that having great trading tools is only the first step in helping market participants To get you and your trading team off to a fast start with minimal disruption time to your operations for our TAS PRO Indicator Suite subscribers we additionally offer e This trading applications playbook e OurTAS PRO Persistent Chat Room e Two hours of one on one phone consultation where we conduct a thorough needs analysis to help you and your trading team get off to a fast applications specific training regimen A minimum of eight hours of free training webinars which alternate between indicator specific training and trading applications using the TAS PRO Indicator Suite e Free ongoing trading application specific articles on our website e Alarge and ever growing library of free training video files To learn more contact TAS Professional run TASP lt GO gt the
18. look back period for the momentum oscillator from which swings are derived Default 8 Sets horizontal line resolution in profile histograms on the vertical price axis Default 60 Sets look back for number of swings to start a Swing VAP Default 2 Sets look back for ending number of swings to end a Swing VAP Default 0 When checked this input sets the high volume node point of control POC to print across the screen to the right Default unchecked These settings allow traders to dynamically profile a market based on inputs and look back periods that are relevant to their individual trading needs and methods Swing VAP Display Settings RED GREEN PURPLE BLUE A relatively wider horizontally developed area on the Swing VAP which reflects a relatively higher concentration of volume at price traded Each Swing VAP will have at least one horizontal green line inside the value area that indicates the fattest part of the profile widest left to right This is called the point of control POC in Market Profile nomenclature Represents an area where there are fewer traders willing to transact and is referred to as price being outside of the value area Represents a relatively narrower area on the Swing VAP where there is relatively low interest on the part of the crowd to transact These areas are commonly formed by runaway gaps or rejection tails Swing VAP Applications e Swing VAPs rev
19. next chart shows how Swing VAP dynamically moves and shifts to the right when a new swing occurs This new map encompasses the first two swings in the preceding chart plus the new swing 30 Notice in this chart how the shaded area encompasses trading data from 10 00 to 16 00 In this case when a new swing was detected by the algorithm the entire profile shifted to the right to reveal a new Swing VAP with new information about the market bsy ba My yi Ni its Chart 3 TAS PRO Swing VAP on 5 minute S amp P futures after a new swing is detected Notice the key difference between these two maps e In Chart 2 there were several fat volume price distributions with the point of control denoted by the horizontal green line at 1298 75 Each of these wide profile areas demarcated where there was price congestion where volume accumulated at price resulting in choppy moves higher as is evidenced by the overlapping bars on the way up from the lowest low e In Chart 3 when the new swing was detected the point of control moved down slightly to 1298 50 revealing a single heaviest concentration of volume at price between 1298 and 1301 But in this chart there are now two skinny profile areas or holes at 1298 and 1302 where volume did not accumulate at price In this case the market moved higher and unobstructed by price congestion Notice that the move from 1301 to 1304 was rapid and occurred in just three non overlap
20. position size will be 50 of the regular pre defined risk exposure 1 The first evidence we have of market support at a higher Dynamic VAP level is when we get the first close of a white bar above the unfair low This is the get ready part of our trade 2 The entry triggers around mid day on January 9 when price trades above the first white candle after finding support on the unfair low 3 The stop is below the bottoming tail of the black candle c which is the first higher low price pivot support that is coincidental with the unfair low that is demarcated by Dynamic VAP We hold the position until price breaks 5 pips below the unfair low 30 Day Chart W BPA Curncy Last Price 158 08 3 54 W Unfair High 158 254 E pPoc 157 718 E Unfair Low 157 718 158 00 ELin pi N AN 2 10 Jan 2011 Chart 45 TAS PRO Dynamic VAP and TAS PRO Navigator illustrating trade management Trade Management refer to Chart 45 Since this is the earliest moment to enter a long in a beginning uptrend we will look to hold the position as long as possible potentially for as long as 3 5 new higher Dynamic VAP profiles after the entry profile before momentum begins to decrease and a new larger balance area is established 92 For that purpose we will trail stop the order 5 pips below each new unfair low that appears on the way up Once we reach a reward to risk on the trade of 5 1 we scale out half of the position and then set
21. speed and forecast accuracy of traditional time series analysis When combined with traditional forms of technical analysis and market timing techniques the TAS Pro Indicator Suite provides new dimensions of data analysis and depth of market perspective TAS PRO Trader Education fast tracks students to the highest levels of proficiency and expertise in deploying the TAS PRO Indicator Suite With a global network of TAS PRO Certified Instructors our highest priority mission is to provide on site structured training courses right out of the box or tailored to meet your traders unique needs From topic specific a la carte courses to comprehensive multi day hands on skill building workshops our proven training methodology will help your trading team deploy essential core skills in using the TAS PRO Indicator Suite with strategies and tactics that are flexible and adaptable to each individual s methods and style From basic indicator functionality to adaptable advanced trading concepts our courses will prepare participants to become proficient skillful and confident using the TAS PRO Indicator Suite in the minimal time possible and with the least amount of disruption to your operations Contact us at 800 609 9208 or 646 822 9461 to book a consultation today or from a Bloomberg terminal window run TASP lt GO gt for more information 12 Introduction Market participants know the value of accurate timely responsive and distilled
22. trending e Atightly compacted concentration or overlapping of Center Lines designates an area of particularly strong support resistance levels that provide a high probability lower relative risk area for entries of extended directional moves e When Center Lines are spread out over a wider range watch for a more rotational and less directional trading session e Ifa Center Line is plotted outside of a red line the market will often be biased in the same direction as that Center Line TAS PRO Statics Resistance 3 Statics provide intraday resistance and targets for longs Resistance 2 Resistance 1 I Pivot Price Projection pee Tao ty TAS PRO Pivot T oy A long bias can be adopted when price is above Yesterdays Close the center pivots and a short bias when price is below Todays Open Moo Support 1 KERT wy Support 2 hien ils i Support 3 Statics also provide intraday support and targets for shorts 10 Day Chart Scrolling EE GENZ US Equity Genzyme Corp Last Pri 71 55 01 15 00 a 12 00 13 00 15 00 20 Jan 2011 21 Jan 2011 Chart 19 TAS PRO Statics on intraday US 10 year T note futures highlighting various trading tactics around the levels 56 TAS PRO Floaters Specifications and Applications Floaters Floating Dynamic Profiles are dynamic indications of support and resistance which self adjust and adapt to varying market conditions Floaters are calculated from current pr
23. x axis parameters e Measures momentum relative strength behind price action e Measures absence of momentum and conviction relative weakness behind price action US 10YR T NOTE FUT Mar11 i i n Daily Candle Chart an a T Be mel Mo Ric TAS PRO VolDelta Chart 35 TAS PRO Vol Delta on daily Euro Spot currency highlighting long short and target areas Vol Delta Configurable Inputs Look Back Period Sets the number of bars for look back period Default 5 Sets how many bars to use for smoothing the resulting curve A value of 1 Smoothing Factor will provide the timeliest values but may appear jagged Higher values will smooth the curve but may increase lag Default 1 74 Configuration Notes e Arule of thumb for optimum results is to use Vol Delta on a minimum of 30 minute time frame chart which will provide superior readings of buyer seller conviction as compared to lower time frames Vol Delta Display Settings Buyers Represents buyers buying volume in relation to price green Sellers Represents sellers selling volume in relation to price red e Vol Delta is displayed in form of two moving average lines e The display scale on the x axis of the chart may go up or down depending on high or low volume trading conditions Vol Delta Applications e Look for divergence of indicator relative to price movement e Use crossovers of either line in relation to the other as a demarcation in the shift of domin
24. 17 20 44 45 47 48 55 58 67 71 91 92 Risk management 20 Risk Warning 6 rotational 23 55 57 58 64 66 67 71 93 105 S Simulated trading programs 6 Slowly through time 24 25 Static Price Compression Levels See Statics Statics Applications 54 Statics Configurable Inputs 53 Statics Display Settings 54 Statics Specifications and Applications 53 Supply 12 13 20 22 25 26 45 48 51 52 59 62 64 104 Swing 28 29 30 35 41 44 47 56 57 65 66 86 87 88 105 Swing Floaters See SwngFloaters Swing high 105 Swing low 28 105 Swing TAP Applications 43 Swing TAP Configurable Inputs 42 Swing TAP Display Settings 42 Swing TAP Specifications and Applications 41 Swing VAP Applications 36 Swing VAP Configurable Inputs 36 Swing VAP Display Settings 36 Swing VAP Specifications and Applications 35 SwngFloaters Applications 66 SwngFloaters Configurable Inputs 65 SwngFloaters Display Settings 66 SwngFloaters Specifications and Applications 65 T Table of Charts and Illustrations 107 TAP 5 14 15 30 31 32 38 39 40 41 42 43 47 48 49 52 103 104 105 106 TAP Map 35 TAP Map Applications 39 TAP Map Configurable Inputs 39 TAP Map Display Settings 39 TAP Map Specifications and Applications 38 TAS PRO Certified Instructor 11 TAS PRO Certified Instructors 11 96 TAS PRO Dynamic TAP 5 14 31 44 47 TAS PRO Dynamic TAP Specifications a
25. 4 Feb 28 2011 Nov 30 Dec 15 Dec 31 Jan 14 Chart 13 TAS PRO Dynamic VAP on daily US Long Bond futures illuminating dynamic support and resistance areas 47 TAS PRO Dynamic TAP Specifications and Applications Dynamic TAP Dynamic Time at Price offers a dynamic representation of developing balance and imbalance areas by measuring time at price a statistical method for aggregating trading data that has its roots in classic Market Profile Dynamic TAP profiles are displayed as a series of three horizontal lines The profiles are calculated based on the price action from the previous profile and new profiles are derived from a proprietary swing and momentum algorithm that dynamically calculates the next Dynamic TAP profile e Although suitable for all types of securities Dynamic TAP was specifically designed for profiling securities that do not have a volume component such as spot Forex Please see and compare description for TAS PRO Dynamic VAP e Dynamic TAP is usable in all time frames e The longer the time frame the more significant the profile balance areas are e Use to identify low risk high probability areas to trade from within balanced non trending or imbalanced trending market phases The top bottom lines of Dynamic TAP profiles are the interim unfair high and unfair low areas respectively The middle line represents the point of control which is the area where the most time at price occurred in that balanced
26. 55 E poc 1381 38 W Unfair Low 1359 8701 Apr Chart 46 TAS PRO VAP MAP and TAS PRO Dynamic VAP illustrating hole in profile Trading Concepts Markets are either balanced or imbalanced and VAP Map clearly illuminates these two conditions by exhibiting fat profiles and skinny profiles 94 Fat areas in profiles reflect a market that is moving slowly and horizontally through time in a well defined price range a balanced market These are the areas of the market that lend technical support once revisited Skinny areas in profiles reflect a market that is moving rapidly and vertically through price an imbalanced market These are the areas of the market where there is a lack of technical support These skinny areas are known as holes in the market in the sense that where price volume did not accumulate and develop horizontally it leaves a hole in the chart A hole in a chart is an area that expresses an absence of horizontal development A characteristic of holes is that when price revisits these areas it more often than not tends to move rapidly and vertically since there are few technical support areas Holes offer superior opportunities for directional trades Market Observations VAP Map is displaying two distinct areas of horizontal development that envelop a distinct hole in the market an area where there was a prior absence horizontal development The market is trading in the range of the upper balance area exh
27. 7 TAS PRO Swing VAP on the daily Light Sweet Crude Oil futures showing high and low volume at price areas 38 TAS PRO TAP Map Specifications and Applications TAP Map Time at Price Map dynamically calculates and displays a sideways color coded frequency distribution histogram by measuring Time at Price a statistical method for aggregating trading data and measuring probability that has its roots in Auction Market Theory and Market Profile TAP Maps are set to a user definable fixed number of look back bars can either remain fixed in place or move forward one bar at a time as new bars are printed on a chart These profile maps are overlaid onto price bars to graphically represent areas of market balance and imbalance where the market is likely to move slowly and horizontally versus fast and directionally e NOTE Although suitable for all types of securities TAP Maps were specifically designed for profiling securities that do not have a volume component such as spot Forex Also see Bloomberg Cheat Sheets for VAP Map Swing VAP and Swing TAP as there are subtle but important differences between these tools e Gradient rich intuitive color coded display delineates where trade is concentrated and accumulating or not accumulating at price e Provides key insights as to where the market is likely to move slowly and develop horizontally through time versus where the market is likely to move rapidly and vertically through price level
28. AS PRO Indicators such as Dynamic VAP or Dynamic TAP e Use the color coded zero line to quickly assess relative volatility as well as identify broader areas of support and resistance Yellow indicates a market that is supply balanced cyan indicates a market that is supply imbalanced e Relative peaks of the Momentum Histogram will provide further insight on momentum Consecutive histogram peaks further away from zero line indicate increasing momentum where consecutive peaks closer to the zero line indicate decreasing momentum Daily 3 4 2010 1 31 2011 HG1 Comdty COMEX Copper Future Last 439 55 2 25 Copper 1 i Viy dih yi Daily Candle Chart m lh iy alh i fh ti li Yal an uy itt ul tut ty mi yl af l vuln SAT TAS PRO Navigator Navigator will indicate if a directional Peaking aes alert move is gaining momentum nal pte momentum M yi M Pme zero line can be used as a long or short decision support tool A return to the zero line in a trending move can identify potential areas of support uptrend or resistance downtrend Divergences against price can forecast reversal May Jun Jul 3 Dec Chart 17 TAS PRO Navigator on daily DJIA illuminating directional bias and momentum indications 53 TAS PRO Statics Specifications and Applications Statics Static Price Compression Levels use price and volume analysis volume aggregation and multiple time frame confluence to calculate a
29. Crude Oil futures showing high and low volume at price areas 37 Chart 8 TAS PRO TAP Map on the daily US 10 year T note futures 38 Chart 9 TAS PRO TAP Map on daily GBP currency chart showing high accumulated time at price in red map areas and low accumulated time at price in blue purple map areas 40 Chart 10 TAS PRO Swing TAP on US 10 year T note futures 41 Chart 11 TAS PRO Swing TAP on daily JPM US Equity illuminating both horizontal and vertical market movements 43 Chart 12 TAS PRO Dynamic VAP on daily US 10 year T note futures 44 Chart 13 TAS PRO Dynamic VAP on daily US Long Bond futures illuminating dynamic support and resistance areas 46 Chart 14 TAS PRO Dynamic TAP on daily US 10 year T note futures 47 Chart 15 TAS PRO Dynamic TAP on daily JPY USD X Rateilluminating dynamic support resistance and potential entry and target areas 49 Chart 16 TAS PRO Navigator on daily 10 year T note futures 50 Chart 17 TAS PRO Navigator on daily DJIA illuminating directional bias and momentum indications 52 Chart 18 TAS PRO Statics on intraday US 10 year T note futures 53 Chart 19 TAS PRO Statics on intraday US 10 year T note futures highlighting various trading tactics around the levels 55 Chart 20 TAS PRO Floaters on daily US 10 year T note futures 56 Chart 21 TAS PRO Floaters on daily XOM US Equity displaying TAS PRO Floating 58 Chart 22 TAS PRO Floaters on 5 minute S amp P futures 59 Chart 23 TAS PRO Floaters w
30. E BLUE A relatively wider horizontally developed area on the VAP Map which reflects a relatively higher concentration of volume at price traded Each VAP Map will have at least one horizontal green line inside the value area that indicates the fattest part of the profile widest left to right This is called the point of control POC in Market Profile nomenclature Represents an area where there are fewer traders willing to transact and is referred to as being outside of the value area Represents a relatively narrower area on the VAP Map where there is relatively low interest on the part of the crowd to transact These areas are commonly formed by runaway gaps or rejection tails 34 VAP Map Applications E IBOV Index Bovespa Brasil Sao Paulo Sto 69133 0938 TAS PRO VAP M ap VAP Maps reveal that markets have the tendency to trade slowly and horizontally within the red area of the VAP Map and they trade rapidly and vertically outside of the boundaries of maps VAP Maps are especially intuitive in large time frames in terms of orienting traders to the general tone and tempo of the market When price is inside the red value area the market bias is horizontal Anticipate moderate to strong support and resistance at the extremes of the value area When price does break out of the red value area the market bias is vertical Anticipate the previous value area and especially the point of control POC a
31. F 11 00 11 30 12 00 12 30 13 00 13 30 14 00 14 30 15 00 15 30 16 00 21 Jan 2011 Chart 36 TAS PRO Vol Delta on 5 minute S amp P futures highlighting buying interest selling pressure relative strength relative weakness trending and consolidation market states 76 TAS PRO Velocity ROC Specifications and Applications Velocity ROC Velocity Rate of Change VROC is a timing and trade management tool that is portable to all markets and gives a true measure of buying and selling pressure Velocity ROC graphically displays the difference between a proprietary volatility calculation and its moving average e Usable on any time frame e User selectable moving average e Helps identify and stay with trending market conditions m US 10YR T NOTE FUT Mar11 abe a toa i Daily Candle Chart sat ey item orm a Lhal t ao l ae a li Daily 11 18 2009 2 2 2011 IB TY1 Comdty CBOT 10 Year US Treasury Not 119 28 Chart 37 TAS PRO Velocity ROC on daily 10 year T note futures Velocity ROC Configurable Inputs Look Back Sets look back period for Velocity ROC calculation Default 5 Smooth Slow Sets smoothing factor for the Velocity ROC moving average Higher values will Average create more smoothing Default 50 ROC Smoothing Sets smoothing factor for Velocity ROC Higher values will create more Factor smoothing Default 1 Velocity ROC Display Settings Velocity ROC Velocity ROC is di
32. Poc 0 0121 H Unfair Low 0 012 oo aa d P s Maintain long position until a new Dynamic TAP appears i signaling a potential return to a phase of consolidation 0 0124 Take a long position kam and maintain a long bias while above the Unfair High Resistance at i Unfair High 0 0122 Dynamic TAP provides support and resistance levels during phases of consolidation gt 0 012 Support at Unfair Low Take a short position and maintain a short bias while po 0119 below the Unfair Low Maintain short until a new Dynamic TAP appears kamin signaling a potential return to a phase of consolidation Oct 15 Oct 29 Nov 15 Nov 30 Dec 15 Dec 31 Jan 14 Jan 31 Feb 14 Feb 28 2010 2011 Chart 15 TAS PRO Dynamic TAP on daily JPY USD X Rate illuminating dynamic support resistance and potential entry and target areas 50 TAS PRO Navigator Specifications and Applications Navigator is a versatile indicator that combines several signals to assist in managing trades Navigator provides several types of actionable information about underlying trading conditions Navigator is a composite indicator that combines classic trend and volatility indicators to highlight trend non trend momentum potential exhaustion and reversal points e Rich colorful display of multiple algorithms that is usable on any time frame e Indicates which side of the trade to be on where there is the highest probability of going in the direction of capital flow and whic
33. RO Indicator c Suite fast tracks your trading Is of seek to met Lorem ipsum dolor met read more read more read more 98 Pre recorded Educational Webinars Furthering our commitment to your education as a trader we provide a regular series of weekly pre recorded events These webinars are created and produced by our top traders and educators and overview noteworthy trades each week It doesn t get easier than that You have a complete library of a multitude of trading concepts and ideas based on actual trade ideas that were presented in our live trading and training rooms To access our pre recorded webinars page type TASP lt GO gt then click the Training link on our website TAS Professional Home Sales About Incisive Accurate Trading Tools Real time Live Training amp Support yA Backed by Actionable i Research amp Ideas 7 Training amp Education TAS Professional provides you and your team with real time live training and support to fast track you and your team to maximum proficiency with our trading tools with the least amount of disruption to your current trading operations Multilingual documentation live ongoing support amp TAS PRO Persistant Chat through Bloomberg are a few of the methods we utilize read more Indicators li Research Designed by industry professionals applying the highest standards for quantitati
34. TAS Professional TAS PRO Indicator Suite User Manual and Applications Guide Gold Futures Daily Candle Chart TAS PRO VAP Map 210 5 250 TAS PRO Dynamic VAP 2 7 7 GC1 Comdty COMEX Gold 100 Troy Ounces F 1324 9001 H Unfair High 1388 55 W poc 1381 38 H Unfair Low 1359 8701 This page is intentionally left blank Legal Notices 2011 by TAS Professional LLC All rights reserved Protected under the Berne Convention Printed in the United States of America No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher except in the case of brief quotations embodied in critical articles and reviews For information please send an e mail to press tasprofessional com BLOOMBERG BLOOMBERG ANYWHERE BLOOMBERG COM BLOOMBERG MARKET ESSENTIALS Bloomberg Markets BLOOMBERG NEWS BLOOMBERG PRESS BLOOMBERG PROFESSIONAL BLOOMBERG RADIO BLOOMBERG TELEVISION and BLOOMBERG TRADEBOOK are trademarks and service marks of Bloomberg Finance L P BFLP a Delaware limited partnership or its subsidiaries The BLOOMBERG PROFESSIONAL service the BPS is owned and distributed locally by BFLP and its subsidiaries in all juri
35. TAS PRO TAP Map TAS PRO VAP Map TAS PRO VDVR TAS PRO Velocity ROC TAS PRO Vol Delta TAS PRO Volume Delta TAS PRO VolAdj Price TAS PRO Volume Adjusted Price TAS PRO Wall TAS PRO Floating Wall TAS PRO Windows Disclaimer and Risk Warning This publication along with any charts and examples is for educational purposes only and should ONLY be used to study the actions and activities of the markets This publication is NOT designed to provide any investment advice or trading ideas and should not be used as such Trading can result in large losses and may not be an activity suitable for everyone Hypothetical or simulated performance results have certain inherent limitations Unlike an actual performance record simulated results do not represent actual trading Also since these trading setups may not have actually been executed the results shown may have under or over compensated for the impact if any of certain market factors such as lack of liquidity This publication is supplemented by the TAS PRO Persistent Chat room where TAS Certified Professional moderators will endeavor to discuss educational examples of trade setups using the TAS PRO Indicator Suite All market commentary in our TAS PRO Persistent Chat Rooms is for educational purposes only and should not be construed as investment advice regarding the purchase or sale of securities options equities or any other financial instrument of any ki
36. Trading and Trading Styles A cardinal rule in trading is Don t fight the market In other words do what the markets are doing by understanding what they are communicating Therefore as a general rule since markets only have two dominant phases of activity trending and non trending a When the markets are trending imbalanced vertical directional etc trade the trend and stay with the trend b When the markets are non trending balanced horizontal non directional etc buy the lows of the range and or short the highs of the range When trading in the direction of major capital flows based on the two phases of market activity you are doing what the market is doing The TAS PRO Indicator Suite has been specifically designed to delineate these two dominant phases The Market s Two Phases Are Mutually Exclusive Markets trade in one of two mutually exclusive phases of market activity horizontal movement through time or vertical movement through price but never both at the same time in the same time frame During a transition from one of the phases to the other it may seem that they co exist but in a general sense until we get confirmation of the actual change in phase we evaluate the market based on the phase at hand So a market either exhibits a horizontal formation OR a vertical formation never both simultaneously vvv Bag Balance Leads to Imbalance Then Back to Balance Since the market s two phases are mu
37. VAP profiles will form or price will be pulled back into the existing profiles US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Dynamic VAP Chart 12 TAS PRO Dynamic VAP on daily US 10 year T note futures 45 Dynamic VAP Configurable Inputs Signal Strength Sets the signal strength to be considered when forecasting market swings 1 weak 2 medium 3 strong Default 2 Momentum Sets the look back period for the momentum oscillator from which swings are Look Back derived Default 7 Look Back Sets the number of bars of data that are used to create the parameters of the Period Dynamic VAP profile Default 7 Dynamic VAP Display Settings Unfair High Top line indicates the unfair high area red paint pi Center line indicates the point of control POC light blue Control P E Unfair Low Bottom line indicates the unfair low area light green Dynamic VAP Applications When price is bracketed inside a Dynamic VAP profile the top line is considered a supply area resistance and the bottom line is considered a demand area support When price moves outside the top of a Dynamic VAP profile a a breakout has occurred b the market bias is directional to the upside c and the relative vertical speed of movement through price levels will likely increase When price moves outside the bottom of a Dynamic VAP profile a a breakdown has occurred b the market bias is directional to the downside c and the rel
38. a confluence of activity TAS PRO TAP Map 2nd resistance A past area of high volume at price accumulation can be a future area of support or resistance 7 1st resistan 1st resistances Daily 9 5 2008 1 21 2011 GBP Curncy BRITISH POUND SPOT Last P 1 6000 Oct Nov Dec Jan Chart 9 TAS PRO TAP Map on daily GBP currency chart showing high accumulated time at price in red map areas and low accumulated time at price in blue purple map areas 41 TAS PRO Swing TAP Specifications and Applications Swing TAP Swing Time at Price Map displays a sideways color coded frequency distribution histogram that is set to a user definable number of look back swings in a market Swings are derived from a proprietary swing and momentum algorithm that dynamically calculates the next Swing TAP These profile maps are overlaid onto price data to graphically represent areas of market balance and interest denoted by time at price versus areas where the market is likely to move fast and directionally denoted by lack of time at price Swing TAP profile price maps employ the concepts of statistical probability
39. ading style with what is being presented to you The TAS PRO Indicator Suite was designed to illuminate these two states in selectable time frames to shed light on where the major flows of capital are and how they are affecting price moment Trading Horizontal Markets A sideways market is relatively easy to identify Its formal definition is a market with relatively equal price pivot highs and price pivot lows as follows 27 This is a market that is constrained by liquidity and hence the market stays within a range as follows We trade sideways non trending markets by looking to a Buy the price pivot lows of the range b Sell short the price pivot highs of the range c Buy the price pivot lows and short the price pivot highs NOTE There are many variations to trading all markets and trends What we are trying to distinguish here is that since there are only three trends but two basic movements horizontal vs vertical the trading tactics for these two movements are decisively different The TAS PRO Indicator Suite allows you to quickly and easily determine which of these market movements you are in and then trade them accordingly And since the vast majority of losing trades occur by simply being on the wrong side of the market knowing where you are and what type of movement the market is in is paramount to improving trading immediately Trading Vertical Markets The Uptrend An uptrend is easy to identify Its formal
40. alanced Profile instrument Traded E RSD 240 minute chart Time Frame Indicators Used TAS PRO VAP Map TAS PRO Floaters and TAS PRO Navigator Market The market is exhibiting a multi day balanced stated that is denoted by a wide Characteristics range VAP Map that has an evenly distributed high volume node Trading Premise Until the next market imbalance occurs trade the established range Then following an annotated chart of the trading application each article discusses the following concepts related to the application e Trading Concepts e Market Observations e Trading Plan e TradingTiming We will be adding to this section periodically in the printed version of this manual as well as posting new application articles as they become available 81 Trading Application Trading a Balanced Profile Trading Concept Trading a Balanced Profile m romant toued EURUSD 240 minute chart Time Frame Indicators Used TAS PRO VAP Map TAS PRO Floaters and TAS PRO Navigator Market The market is exhibiting a multi day balanced stated that is denoted by a wide Characteristics range VAP Map that has an evenly distributed high volume node Trading Premise Until the next market imbalance occurs trade the established range Euro Spot EUR Curncy Daily Candle Chart TAS PRO VAP Map TAS PRO Floaters TAS PRO Navigator
41. ant buying or Selling respectively o Higher consecutive pivot highs or peaks in volume spikes in either the green line buyers or red line sellers is confirming activity o Lower consecutive pivot highs or peaks in volume spikes in either the green line buyers or red line sellers is non confirming activity o When both lines converge back togther after extreme divergence separation then price is attempting to rebalance e Use Vol Delta on intraday time frames with a suggested look back period of 30 minutes up to the last two hours e Use Vol Delta to see momentum relative strength behind a price move as well as a timing indicator for capturing the timing of the move beginning and or end e Avery helpful landmark in Vol Delta display is when the two lines opposing groups of buyer vs sellers begin to diverge e When a market is strong to the upside and sellers are indicated by the red line crossing above the buyer s line green line but price does not follow through this is a strong indication of a potential momentum failure 75 E mini S amp P ES 5 minute Candle Chart a aratai ar W h i TAS PRO VolDelta Mibuyers 183 00 Misellers 958 00 R A When Sellers far outnumber Buyers a powerful move is underway Note that when the number of Sellers declines and the number of Buyers becomes more evenly matched that the directional move is over In this way Volume Delta can be used as a timing tool
42. area red shown by the VAP Map or at least to the point of control POC The target to the downside would initially be to the high volume area below the hole and then to the lower end of that high volume area as a second target 96 Appendix A More Learning Resources for the TAS PRO Indicator Suite TAS PRO Persistent Chat Room Our goal at TAS Professional is to have you and your trading team to learn how to use our trading tools under real market conditions and in real time as fast as possible with the least amount of disruption to your trading That s why we have created the TAS PRO Persistent Chat Room a real time interactive environment where we help you get off to a fast start while training you how to harness the analytical power of the TAS PRO Indicator Suite The TAS PRO Persistent Chat Room uses Bloomberg s groundbreaking IB persistent chat technology and features TAS PRO Certified Instructors in a forum for subscribers to engage in educational discussions about using the TAS PRO Indicator Suite plus applications and market observations based on our trading tools The following graphic is a screenshot from our live the TAS PRO Persistent Chat Room that shows us discussing our indicators PRO TRAINING EPO DAVID TRUFFELMAN JEREMY BERKOVITS JOHN CAREY Great Example of Ho Contact TAS Professional today to join the TAS PRO Persistent Chat Room Live Educational Webinars We are aware of the commitments th
43. at you have to your own trading and they don t include staying in an online discussions for hours and hours at a time TAS Professional is committed to ongoing education about our trading tools applications trading tactics methods and strategies related to the TAS PRO Indicator Suite Take our online trading courses absolutely free of charge On an ongoing basis we cover a broad spectrum of topics in a condensed version and as concisely as possible We will answer any questions in detail directly afterwards or by private consultation To access our events page run TASP lt GO gt then click the Events tab on our website lt TAS Professional Incisive Accurate Trading Tools Real time Live Training amp Support Backed by Actionable Em Research amp Ideas Indicators Designed by industry Indicator Suite excl Bloomberg terminal st Wd By combining c and quantitative anal techniques read more gt li Research faa Training Indicator Suite y identify areas of outperformance About Contact Us TASPRO Indicator Suite mberg nd methods read more accuracy of traditional time series a a Consulting c technical Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor u met Lorem ipsum dolor met team to the highesi Lorem ipsum dolor met Lorem proficiency and expertise in ipsum dolor met Lorem ipsum deploying the TAS P
44. atility red Range Window Lower boundary of dynamic volatility range over the span defined by Box Low Range Period input blue VolAdj Price Applications VolAdj Price can act as a leading indicator of relative strength or weakness of price zones or of a price movement VolAdj Price is dynamic and only affected by changes in the range and speed of price movement itself When price is trading inside the blue Range Window lines price is said to be contained or not expanding When price breaks below the blue Range Window lines market bias should be to the downside When price breaks above the blue Range Window lines market bias should be to the upside Strong markets should not allow price to quickly retest the blue Range Window lines Connecting two or more pivot highs or pivot lows of Adjusted Price establishes and delineates tradable patterns Points that overlap or congest may offer additional insight relative to price congestion Manually drawing trend lines on the indicator itself may identify areas of price reversal or divergence especially when used in tandem with other TAS PRO Indicators such as Vol Delta Navigator or i Ratio 80 Trading Application Concepts Using the TAS PRO Indicator Suite In this section we will review a variety trading applications using the TAS PRO Indicator Suite Each application article uses a consistent format that overviews the trading situation and premise as follows Trading Concept Trading a B
45. ative vertical speed of movement through price levels will likely increase When breakouts and breakdowns occur above and below Dynamic VAP profiles there is a high probability that the new directional move will remain intact until a new Dynamic VAP profile occurs Previous Dynamic VAP profiles to the left in the chart are support or resistance areas where the market will either pause and reverse or pause consolidate and then resume the current directional move Dynamic VAP profiles that are narrower top to bottom area relatively lower volatility states and provide relatively lower risk entry opportunities as contrasted to wider Dynamic VAP profiles which are relatively higher volatility states 46 e When price is trading inside a Dynamic VAP profile we look to buy the lows in the range and or short the highs To improve trading odds in this situation give directional preference to higher time frame trends TAS PRO Dynamic VAP US1 Comdty CBOT US Long Bond Future 120 0938 iy mer High 123 3375 W Unfair Low 122 00 119 325 Resistance Resistance Short entry M i any Break below Unfair Low short entry Maintain a short bias while below the Unfair Low Break below Unfair Low short entry Dynamic VAP provides Maintain short until a new Dynamic VAP support and resistance appears signaling potential return to levels during phases of a phase of consolidation Exit consolidation Jan 31 Feb 1
46. ce potential entries and targets plus a very tight TAS PRO Floating Wall Sept 20 Oct 16 68 TAS PRO Windows Specifications and Applications TAS PRO Windows is a unique leading indicator that displays support resistance levels and trading targets and is also appropriate for use as a timing tool It identifies far in advance the key support and resistance levels that can be used for entries exits and reversals Additionally the behavior of TAS PRO Windows offers insight into future price action and is useful for appropriate trade timing TAS PRO Windows uses multiple time frame analysis and volatility measurements in its algorithm and can be used on intraday or daily and higher time frames e Price either trends or consolidates within TAS PRO Windows that dynamically adjust to always display key target levels on both sides of the market e The behavior of TAS PRO Windows alerts traders to future trading conditions and whether or not a present move is likely to follow through or fail e Multiple time frame analysis in the TAS PRO Windows algorithm identifies trades of larger significance well in advance US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Windows haat a Pe B T m r m_i OM N aa POM Ott eg T A T TaT Dafty 2 9 2006 2 3 2011 GE Tv Comety CHOT 10 Year US Treasury Not 119 4844 4063 MB Resistance 139 2813 I Support 122 5729 Get 2 Chart 31 TAS PRO Windows on daily 10 year T n
47. ceesesseeceseeseeeeseeseeeeeeesseeeeseses 35 TAS PRO TAP Map Specifications and Applications cceeseeecesesseeceeessceceesesseecesesseeeeseeseneeeeesseeeeseeses 38 TAS PRO Swing TAP Specifications and ApplicationsS esseecesesseecesesseeceeeesseecesesseeeeseeseeeeeeesseeeeseses 41 TAS PRO Dynamic VAP Specifications and Applications e sesseesesseesssseesssseeessseeesssseesssseesssseeessseeessseeses 44 TAS PRO Dynamic TAP Specifications and Applications esseesesseesssseesssseeessseeesssseesssseesssseeessseeesssseees 47 TAS PRO Navigator Specifications and Applications esseesessessssseesssseesssseeessseeesssseesssseesssseeessseeessseeens 50 TAS PRO Statics Specifications and Applications sssesseseessesseesssseesssseesssseeessseeesssreesssseesssseeessseeessseeees 53 TAS PRO Floaters Specifications and Applications ccceeseeccecesseceseeseceesesseccesesseeeeseesseeeesenseeeeseses 56 Trading Applications for TAS PRO Floater cssscccsesserceeeessecceeesseececeeseeceesesseeeeseeseeeeseeseeeeesesseeeeseses 59 Floating Wall Trading Conceptronic canere ENEAN NEREA E AASE E Er C aE 59 Floaters Step up Trading Concept sccccivassessistacccsivaacessiesssvetewes cessvecessstaneacseatvacccsueascusaneisseouseacsvocdenosvaneeesdsantvesseaas 61 Floaters Step down Trading Concept sscucscisvcvescasneveccosecvedcosnvuescotwanedestundedersestedessucteceasnetedsannededuounededeanasdedeataseed
48. cosesccssseceseseasuseeseveseacecastecesesedoasesoaterescecasseeasasensecessesesanes 20 Trading and Trading S tylesisccsdeaccccsedaneteslosncvesesnnssedenadacaeusarwodtauadeesssenrevdegendevanutncevdiatecananstecueddatecevieateceuteapeverdenss 24 The Markets Two Phases Are Mutually EXCLUSIVE cesscssscssecscecssecsseesseesnecsnecsseescecseeessecsseeseeessecseeesaeenseesaeens 24 Balance Leads to Imbalance Then Back to Balance ssceesssececessceecesecceeesseceesessnceesessaeeeessaeeesesseeeeeeseeeeeees 24 Trading Horizontal Markets asiss cdctessecesdisecactessncassesancostedeccasscdecceassdancdsstaaccssstaancssstaaacasvedgacedsegaacesvedgacessddeacasavdeass 26 Trading Vertical Markets The Uptrend 0 cccivecccscvessscecveasscocvescttoevsnadiscsunesdssvuaaicssveactcsehaddeseveasgeneneatsceenearsdeeseacs 27 Trading Vertical Markets The Downtrend essscccessseceeessecesesseceecesneeeeesaecesessaeeeeessaceesesaeeeseesaeeesessaeeesesaeees 28 Swing Highs and Swing Lows veiseccehisvesechintes cevtavedscheauacdevesuclocucneteetetacceececgategdusenececusaaeedsecavedecegecbetwacceseseageuedsetes 28 TAS PRO Indicator Suite Overview of the Indicators 0 0 00 eeseeecesesseeceseeseceesesseeeesesseeeessesseeeeeesseeeeseses 31 TAS PRO VAP Map Specifications and Applications ccceeseecceeessecceseesceceeeesseceesesseeeeseeseeeeesenseeeeseses 32 TAS PRO Swing VAP Specifications and Applications eseescccesseeceseesee
49. cs VAP Map etc When i Ratio reaches an overbought reading be on the alert for price to follow through or not Moreover watch for price to stall in choppy rotational trade until the inflection point is reached When price stalls and i Ratio does not stall this is a good indication to seek other confirming factors for a counter trend trade Use other TAS PRO Indicators for confirmation such as Navigator Statics and VAP Map When i Ratio moves up and price does not move up in tandem look for confirmation with Vol Delta to locate reference areas of support and resistance P ES nute er Chart Chart 34 TAS PRO i Ratio on 5 minute S amp P futures highlighting potential long and short areas 73 TAS PRO Vol Delta Specifications and Applications Vol Delta Volume Delta offers an intuitive visual display of buyers and sellers in relation to each other It provides insight on momentum of volume in comparison to price action in a defined time range Vol Delta identifies when one group buyers or sellers is gaining or losing momentum and commitment of capital a show of conviction which is either present or absent in price action following through or failing to follow through e Vol Delta identifies when price movement is likely to have sufficient momentum for proper follow through in price action or absence of follow through when non confirming e Compares volume momentum to price action and scales according to
50. d current POC on the VAP Map Trade Management Exiting trades is discretionary Long trade targets to the upside should be considered at previous VAP Map points of control A new Dynamic VAP will appear when price is turning into a horizontal or consolidating state from a trending or vertical state When this occurs at a previous VAP Map s POC it is an excellent area to consider taking profits Initial stops on trade should be just below top of the daily Dynamic VAP 60 minute time frames should be used to move stops as price moves more in favor of the trade 86 Trading Application Trading a Swing Reversal Trading Concept Trading a Swing Reversal l T FECTS Talay EURUSD Spot Currency 60 minute chart Time Frame Indicators Used TAS PRO VAP Map TAS PRO Floaters The market is exhibiting a multi hour downtrend followed by a period of consolidation denoted by a tight range high volume area on the VAP Map that Market has an evenly distributed high volume node Price breaks down below high value Characteristics area then back up inside and closes New Floaters appear with price now clearly traded above center Floaters as opposed to below during downtrend and consolidation period Trading Premise Enter long or short on potential reversal swing 60 min Candle chart EUR USD SPOT CURRENCY TAS PRO FLOATERS 2 14 TAS PRO VAP MAP 50 0 100 h value area on MAP New TAS PRO FLOATERS indicate potential swings in market The estab
51. definition is a market with a series two or more higher price pivot lows and higher price pivot highs as follows 28 This is a market that is unconstrained by liquidity in that more and more buyers and or buying volume is coming into the market Therefore we typically have higher odds trading in the direction of the flow of capital going long as opposed to going against it shorting this market We trade uptrends by looking to a Buy the higher price pivot lows of the range b Shorting the price pivot highs fading the uptrend is a lower odds trade albeit a trading tactic that many skilled traders use to their advantage Trading Vertical Markets The Downtrend A downtrend is easy to identify Its formal definition is a market with a series two or more lower price pivot highs and lower price pivot lows as follows 4 This is a market that is unconstrained by liquidity in that more and more sellers and or selling volume is coming in to the market Therefore we have higher odds trading in the direction of the flow of capital going short as opposed to going against it buying this market We trade downtrends by looking to a Short the lower price pivot highs of the range b Buying the price pivot lows fading the downtrend is a lower odds trade albeit a trading tactic that many skilled traders use to their advantage Swing Highs and Swing Lows TAS Professional has developed and uses a proprietary algorithm fo
52. der Education fast tracks you and your trading team to the highest levels of proficiency and expertise in deploying the TAS PRO Indicator Suite read more Home Services Events Sales Trial About Contact us TAS Professional LLC 2011 Privacy Policy Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met read more 100 Educational Books and Publications At TAS Professional we take the educational side of trading very seriously Trading is not only a business it is a practice similar to what physicians have Physicians go through college university medical school residency hospital practice and only then to private practice As a private practice trader you want to place trading education at the top of your priorities list We provide this list to help get you started towards trader proficiency A great place to start is with Trading in the Zone by Mark Douglas Risk Money Management Tharp Kiev Grant Balsara Bernstein Trade Your Way to Financial Freedom The Psychology of Risk Mastering Market Uncertainty Money Management Strategies for Futures Traders Against the Gods The Remarkable Story of Risk A fascinating history Trading Psychology Douglas Douglas Koppel Abell Kiev Kiev Steenbarger
53. ding plan with a contingency of how price may respond to these confluent levels 2 We will be looking exclusively for one of the following events and taking the following action with respect to the current bar and the red first support Floater a Ared bar close above Tactic Wait for the next bar to trade above the current bar s high and take the long entry Stop is below the current bar s low b Ared bar close below Tactic Wait for the next bar s close a If it closes below the current bar consider shorting the market as this is the area that the market has potential to move fast to the downside since we know that the area below balance is imbalance Stop is above the current bar s high b If it closes with an inside bar wait for more information and ideally a close of the next bar above the prior bar s high c Agreen bar close above Tactic Take the long trade when price trades above the current bar s high Stop is below the current bar s low with discretionary trail stops see Trade Management Trading Timing To the long side use Navigator to time your trades when Navigator indicates the first momentum reversal signal To the short side Navigator will likely continue to exhibit red histogram bars and Histogram Moving Average that is below the histogram bars 83 Trade Management Since exiting trades is discretionary long trade targets to the upside will be in the areas of the prior Floaters
54. du cational W CDinarsiiy isicS cove tose seolc iaevcesciav scale tuancasdinscesds iiuwedsdiueeressduretee fouecvedsdueetevdduaceetedaeesdedunetedeeGiges sete 97 Pr r corded Educational Webinars 13 iicsscssesscicsvcechsavscccisavadech saveacess svadees savee cdssavadesh caves EE EE EE VRENA 98 Trader Consulting s oss cccscdoudies csnducgedoucvedtontecacounvessdumaracacunstvodeuuaseacacucebssueacavanntuseattatasaniastycamtegcesesieatecumibane enietes 99 Educational Books and Publications sssscccccccssssssecseeccceccessecccsccceeeesssecescccsecesseeseseccsueessececssesseeeaueeseseeseees 100 10 Appendix B The TAS PRO Customer Care Center essssccsessecceeesseceeseessneeesesseeeesesseeeeseesseeessenseeeeees 102 Appendix C Glossary of Termms ccccsssscsssssnsecesssscetsssceerecssneevessansecesssnseersosaneeressanseeeevsnseetessaneesens 103 Table Of Charts cccccsccccccesesusecevceusaceveousevevesudevevededcveseveveceveveveceveveuscevevedstaveydvsse ey doueveveveccvevevercdevederctecedeece 107 11 Foreword Inspired by Peter Steidlmayer s Market Profile and designed by industry professionals applying the highest standards for quantitative analysis TAS Professional is proud to offer our TAS PRO Indicator Suite exclusively to Bloomberg terminal subscribers The TAS PRO Indicator Suite is a collection of 15 trading tools that seamlessly integrate price volume and time into unique algorithms that enhance the
55. e VAP Map is displaying a balanced area of high volume accumulation e Price clearly breaks below high value area and back inside e Atsame time new Floaters appear with price above center Floaters e The lower center cyan support Floater is demarcating the bottom of the unfair low of the VAP Map profile with price above lower center cyan Floater e Center Floaters are supporting price at same area of low end of high value area on VAP Map Trading Plan 1 Wait until new Floaters appear and price is above center Floaters as opposed to below This is the most critical step 2 Wewill be looking for support on the VAP Map at either the unfair low or the POC 3 Wewill be looking for one of the following to occur for entry a Look for a price close above top center Floater then look to enter long on retrace to top center Floater b Enter long on break of previous bar high 4 Initial stop loss is below bottom center Floater 88 Trade Timing Use Floaters to time trades to either the long or the short side When price first flips position with respect to center Floaters a new potential swing reversal is in play Price needs to stay above the lower center Floater The trading opportunity has a higher probability outcome when Floaters are narrow range high to low as opposed to wide Trade Management Since exiting trades is discretionary long or short trade targets to the upside will be in the areas of the prior POCs on the VAP Map or
56. eal that markets have the tendency to trade slowly and horizontally within the range of the map and they trade rapidly and vertically outside of the boundaries of maps 37 e Swing VAPs are especially intuitive in large time frames in terms of orienting traders to the general tone and tempo of the market e When price is inside the red value area the market bias is horizontal Anticipate moderate to strong support and resistance at the extremes of the value area e When price does break out of the red value area the market bias is vertical Anticipate the previous value area and especially the point of control POC area to demarcate support or resistance e Add multiple instances of Swing VAP with different settings to create multiple independent and simultaneously displayed maps that allow for a broader perspective of several areas of the market and how price and volume at price action affects the present market especially where there is a confluence of activity TAS PRO Swing VAP Swing VAP displays areas of high volume at price accumulation where price action is expected to be two sided and rotational i Swing VAP also displays areas of low volume at price accumulation i where price action is expected to speed up and be more directional Daily 9 3 2009 1 28 2011 E CL1 Comdty NYMEX Light Sweet Crude Oil 89 04 Chart
57. een or red arcs above and below the turning points 2 Avertical market can either be up trending or down trending a An uptrend is defined by a series of higher price pivot lows and higher price pivot highs Another way of looking at this two phase concept is as follows Markets either trade through time J J ae TIME OR Markets trade through price at e T 22 The reason that these two states exist is a function of where liquidity is acting on price For example if there is a relatively equal amount of volume on both the long and short side of the market then that market is constrained by liquidity This means that for all of the trade occurring on both sides of the market buying is met with selling and selling is met with buying such that the market cannot move out of the range However when there is excess liquidity in the market favoring one side or the other then the market moves vertically as follows Markets are either constrained by liquidity f f A 1 IRA OR Markets are unconstrained by liquidity The primary function of the markets is to facilitate trade by rationing supply If a market is accommodating all buyers and sellers in a particular time frame then that market is said to be efficient from the standpoint that it is accommodating the needs of both buyers and sellers Hence the market displays horizontal movement through time in a fairly well defined price range However i
58. enes 62 Floaters Key Area Trading Concept cisiceseciidiesndiiavedecisddeseeks E E r E T 63 Floaters Rotational Market Entry Trading Concept essscccssssccecessceeseseceeeeseccecesseceesesaeeeeessaeeeseseeeeeeseaeesenses 64 TAS PRO SwngFloaters Specifications and Applications sssssesseesssseesssseeessseeesssseesssseesssseeessseeessseeses 65 TAS PRO Windows Specifications and Applications sessseseseeessssessssseesssseeessseeesssseesssseeessseeessseeessseeees 68 TAS PRO i Ratio Specifications and Applications ssccccesseccecesseeceseeseeeesessnecesesseeeeseesseeeesesseeeeseses 70 TAS PRO Vol Delta Specifications and Applications ceeseeececesseeceseeseeceeeesseeeesesseeeeseesseeeeeesseeeeseeses 73 TAS PRO Velocity ROC Specifications and Applications ccccessencesesserceeeesseeeeseeseeeeeeeseeeeeeesseeeeseeses 76 TAS PRO VolAdj Price Specifications and Applications ccccessesceeeesseceeeessecceseeseeeeseeseeeesetseeeeeeses 78 Trading Application Concepts Using the TAS PRO Indicator Suite oe eee eeceecesseeceeeeseeeeeeetseeeeeeeees 80 We will be adding to this section periodically in the printed version of this manual as well as posting new application articles as they become available Trading Application Trading a Balanced Profile 80 Trading Application Trading a Balanced Profile eesesccseesenecesesseeceseesceceesesseceesesseeeeseeseeeesesseee
59. enges to master And that s because it s possible for any market to be in an uptrend downtrend and sideways trend all at the same time But it can never be so simultaneously in a single time frame Consider the following three charts Weekly Multi month Uptrend Daily Up Down Sideways Trend 60 min Down Sideways Trends Illustration 1 Different trends in different time frames of the same instrument Each of these charts is the same trading instrument However depending on our focus of time frame and where we re looking the same instrument can be in different trends at the same time Therefore our first rule in any chart analysis is Consider the time frame you are evaluating at all times Never generalize your analysis by concluding The market is in an uptrend or The market is in a 20 downtrend At all times narrow your thinking to a specific time frame from the top down such as The weekly is in an uptrend the daily chart is in mostly sideways and choppy trend and the 60 minute is mostly in a downtrend As you will see in later lessons this type of multiple time frame analysis will help you immensely in many of the following areas Understand the larger context and structure of the market Determine the direction of the major flows of capital Determine where the thickest demand and supply points are Determine appropriate buy and sell levels in bracketed or rotating markets
60. ervices Events Sales Trial About Contact us TAS Professional LLC 2011 Privacy Policy 103 Appendix C Glossary of Terms Terminology used in this manual is printed throughout using italic characters in dark blue Auction Market Theory An applied branch of economics that deals with the properties and inner workings of auction markets and in particular how people act in isolation and in crowds balanced profile A balanced profile is a horizontal consolidation with a relatively equal amount of trading above and below the point of control This is a fair area to trade for both buyers and sellers as the market exhibits relatively equal highs and lows in a visibly well defined price range b formation A balanced price consolidation area after a step one vertical move In a profile map it resembles the letter b breakout A breakout is a technical condition of demarcating when a market moves from balance to imbalance to the upside Dynamic VAP and Dynamic TAP clearly highlight this condition when price moves from trading inside the dynamic profiles to above the unfair high the uppermost of the three lines of a dynamic profile Also see breakdown breakdown A breakdown is a technical condition of demarcating when a market moves from balance to imbalance to the downside Dynamic VAP and Dynamic TAP clearly highlight this condition when price moves from trading inside the dynamic profiles to below the unfair low
61. eseses 81 Tradi g a Balanced Profile ccccevisencecvtsteccevescacoectateccuesscudonctachcsucsavecscts Geavuvsaveg vests leavaceaccdunstelusoucsdccbacescusasssevavscees 81 Trading Application Trading a Breakout from a Balanced Profile esseccesessecceeeeseeeeeeesceeeeeenseeeeseeses 84 Trading a Breakout from a Balanced Profile roueni arseenin esea aa aia aiana i a ERTAS 84 Trading Application Trading a Swing ReverSal cecessssccscessrecesesseeceseeseceesesseceesesseeeeesesseeeesesseeeeseeses 86 Trading a Swing Reversal er osinn a caveGasucedeckba A tees leew ts saceguesiecesves sau odessa S E sevivias N 86 Trading Application Managing a Swing Position sssssseseesssseeesssseesssseesssseeessseeesssreesssseesssseeesssreessseeens 89 Managing a Swing Position is cccivecceccsvessessteesceasteesdvscuvsscvatavsa stnrns anon EnEV ERESSE ASEA SEEEN OREA TANE a 89 Trading Application Trading into a Profile Hole sesssesssesesesesesssessseesseesssessseessresseesstessseessresseessressseess 93 Trading into a Profile Hole sci 420i ccceasessededecica cusses sn cedvcdeacyascaseced adage suaxsatecedadscesus vende to dadasecusavaae doaecacveneyedtecadeticess 93 Appendix A More Learning Resources for the TAS PRO Indicator Suite eee eeeseneeeeesseeeseeseeeeeeeses 96 TAS PRO Persistent Chat ROOM i ciesisccvecsenccvesseecvescsteeveandvecvescdteevenadveceeaaddecsussacesuacdcsesheadcsevaegeneneatsceeuvacsdeeneees 96 Live E
62. essional investment advisor before making any investment decisions About This Publication Notes All charts used in this publication are provided courtesy of Bloomberg L P Revision History Released version 1 0 January 2 2011 Conventions Used in This Publication Indicator and other products and services names as well as TAS Professional trademarks are denoted in dark blue bold Calibri font such as TAS PRO Navigator Bloomberg terminal commands are show in green bold text such as To access the page type TASP lt GO gt Configurable input names are denoted in black bold Calibri font such as Momentum Look Back Period Indicator default values are denoted in green Calibri font such as Default 25 Colors are denoted in bold Calibri font in the applicable color such as a light blue line Bold text and underlining is sparingly used for emphasis such as However even if a market can simultaneously be trading up down and sideways it can never do so simultaneously in a single time frame Words and terminology that are defined in the glossary are denoted in dark blue italics Charts are numbered and indexed with full descriptive captions in italic Calibri font Tables are lightly shaded and contain Calibri font as follows Man Starting Bar Sets the number of price bars ago where the VAP Map should start from P g Bar 0 is the current bar Default 30 Sets the number of price bars where the VAP Map sh
63. f a market is accommodating or favoring only one side of the trade instead of both sides the market is inefficient as follows Markets are either efficient OR Markets are inefficient Another way of looking at this two phase concept is to think in terms of balance and imbalance A balanced market occurs when there is a relatively equal amount of buying and selling going on and the market remains in balance neither going higher or lower outside of a fairly tight or well defined trading range An imbalanced market occurs when more trading volume favors one side of the market or the other as follows Markets are either balanced OR Markets are imbalanced 23 We could go on and on with analogies about this concept But the fact remains There are only two things a market can do move horizontally or vertically Following is a list of synonyms for these two states or phases of market activity JZNNN Horizontal Sideways Non trending Non directional Balanced Rotational Consolidation Efficient Non random Range bound Bracketing Overlapping Value Price controlled Constrained by liquidity Moving through time Slow Boring N bima M Vertical Sloping Trending Directional Imbalanced Non rotational Non consolidation Inefficient Random Non range bound Non bracketing Non overlapping value Non price controlled Unconstrained by liquidity Moving through price Fast Exciting 24
64. fault settings which may be adjusted to fit your applications Try different settings until you feel comfortable e Most of the indicators may be used on any time frame chart and with any security where there is adequate or consistent volume Where consistent volume is not collected for a particular security for example in spot Forex many of the TAS PRO Indicators will use price based TAP calculations e Most of the indicators in the TAS PRO Indicator Suite will work in all time frames However o Some of the indicators such as TAS PRO VAP Map and TAS PRO Statics are often better suited for longer time frame market analysis o Other indicators such as TAS PRO Floaters and TAS PRO Dynamic VAP are often better suited for shorter time frame market analysis e The old market adage When in doubt stay out applies to any aspect of analysis or trading and applies to the use of these indicators e Lastly there s a Pygmalion effect when analyzing charts in the sense that you often get what you re looking for This confirmation bias can often skew objectivity and distort rational analysis in the markets a common pitfall of many traders Give yourself adequate time to obtain objectivity in using these tools We are all human and tend to see what we want to see But that doesn t often lead us to getting us what we really want in terms of results Study the markets with these tools and learn to make new distinctions with a critical e
65. g inside Center Lines the market is said to be balanced When price is trading below Center Lines the market bias should be to the downside When price is trading above Center Lines the market bias should be to the upside When Center Lines are spread out over a wider range watch for a more rotational and less directional trading session 67 e Atightly compacted concentration or overlapping of Center Lines designates an area of particularly strong support resistance levels that provide a high probability lower relative risk area for entries of extended directional moves e Red SwngFloaters are projected rotational highs and lows where Anticipate buying the lows and shorting the highs of the range giving preference to the trend in the next higher time frame s e Above Resistance 1 and below Support 1 red SwngFloaters markets are considered to be trending Daily 4 8 2009 1 21 2011 XOM US Equity Exxon Mobil Corp Last 78 98 TAS PRO Swing Floaters W Resistance 1 79 92 H Resistance 2 s H Resistance 3 W Support 1 W Support 2 W Support 3 I Pivot Price Projection H Current Swing Open H Prior Swing Close II TAS PRO Pivot 77 1633 A tight clustering of the center pivot lines provides superior support for long entry And superior resistance if price is below the tight clustering Nov 15 i Nov 30 j Dec 15 Dec 31 2010 Chart 30 TAS PRO SwngFloaters on daily XOM US Equity highlighting support resistan
66. g profits in both directional and non directional trades Help market participants relax observe analyze interpret and make good decisions about high probability situations while the computer does the laborious background analysis of trading levels volume volatility and the like Specifically the TAS PRO Indicator Suite will help you to Clearly read interpret and understand where the concentration of crowd activity is located to make incisive interpretations and timely decisions that are suitable to your application Read understand and make decisions based on the two phases of market activity the only two events that repeatedly occur in the market Make better decisions by properly interpreting volume at price volatility pivot levels momentum characteristics and other key market attributes and characteristics in all time frames Avoid neutral low odds areas in the market saving time money energy and frustration on go nowhere situations Improve market timing and reward to risk by understanding where the crowd is lending demand support in a declining market or supply capping a rising market Analyze and trade the market on your terms according to your tactics strategies and methods which can now be supplemented by the TAS PRO Indicator Suite 14 What This Manual Covers This manual covers all of the individual indicators that make up the TAS PRO Indicator Suite Please spend some time studying the example
67. giving weight and attention to a high potential pause in price at VAP Map s point of control POC 84 Trading Application Trading a Breakout from a Balanced Profile Trading Concept Trading a Breakout from a Balanced Profile Instrument Traded S amp P 500 E MINI GENERIC FUTURES CONTRACT ES1 DAILY Time Frame Inaieator used TAS PRO Dynamic VAP 2 7 7 TAS PRO VAP Map 50 0 100 Settings The market is breaking out of a multi day balanced state that is denoted by a Market ae EP ae narrow range Dynamic VAP in the area of an unfair high that Is exhibited by Characteristics VAP Map Trading Premise Trade the direction of the breakout using shorter time frames for entry Emini S amp P ES1 Daily Candle Chart TAS PRO VAP Map TAS PRO Dynamic VAP A break above the Unfair High of the Dynamic VAP after a period of consolidation Chart 41 TAS PRO VAP Map and TAS PRO Dynamic VAP on daily chart of e mini S amp Trading Concepts Markets are either balanced or imbalanced and the VAP MAP and the Dynamic VAP clearly show these two conditions by exhibiting fat and skinny profiles Fat profiles reflect a market that is moving slowly and 85 horizontally through time in a well defined price range a balanced market Skinny profiles reflect a market that is rapidly and vertically through price an imbalanced market Clearly knowing which of these two mutually exclusive states the market is in dictates ou
68. h side to avoid where there is lesser capital flow e Measures momentum and relative strength or relative weakness of underlying trend e Indicates price divergence and peak conditions e Shows shifts in market conditions from one phase to the next uptrend countertrend short downtrend and countertrend long US 10YR T NOTE FUT Mar11 Daily Candle Chart Chart 16 TAS PRO Navigator on daily 10 year T note futures 51 Navigator Configurable Inputs Look Back Period Smoothing Slow Average Consolidation Look Back Consolidation Standard Deviation Sets the look back period for the histogram Default 25 Slow smoothing factor for histogram Default 13 Sets the look back period for calculating market consolidation state which is displayed on center zero line Default 10 Sets the standard deviation for calculating market consolidation state which is displayed on center line Default 2 Navigator Display Settings Trending vs Consolidating Momentum Histogram Momentum Line Histogram Moving Average Provides a reference point for larger momentum shifts Aqua indicates the market is supply imbalanced and is trending EIBH indicates that the market is supply balanced and moving sideways Histogram displaying trend vs non trend states plus momentum Refer to the following Momentum Histogram color legend Momentum confirmation line that changes from green to red to give early warning of trend direction shif
69. hen key trading areas from a higher time frame align with either Resistance 1 or Resistance 2 a short entry is indicated when price rallies into these areas from below Short Entry b When a key area defined on a higher time frame is in between any two Floater Resistance levels then waiting for a new set of Floaters and for price to trade under the TAS PRO Pivot first is recommended Euro Futures EC1 14331 Daily Candle Chart 1 3144 TAS PRO VAP Map 1256s TAS PRO Floaters 1 3448 1 3725 1 3722 1 3449 E Long Entry a at Support 2 that falls within area of High Volume Support Dec Chart 27 TAS PRO Floaters combined with TAS PRO VAP MAP to locate key area on daily Euro futures 64 Floaters Rotational Market Entry Trading Concept e Definition A rotational market is defined as a market that moves back and forth between two supply and demand areas creating a trading range e Entries a A sign of a rotational market is when Floaters do not change values but remain horizontally fixed in place over a relatively long period of time Depending on the height of the Floater s range entries can be timed to sell at or near Resistance 1 supply and buy at or near Support 1 e Entries b If the height of Floaters range is narrow or contracted then time the entry to sell at or near Resistance 2 and to buy at or near Support 2 When the range is narrow the probability of price breaking out of the Floater s range increa
70. ibiting a mature market state Price is very near to entering a low volume at price hole as shown by the VAP Map profile After eight consecutively higher Dynamic VAP profiles the current profile is lower indicating a pause or stall in the market Price has broken below the unfair low of the current Dynamic VAP putting the market in a short term downtrend as it approaches the intermediate term unfair lows Trading Plan 1 Enter long a Entry should be as close to 1 315 as possible and only if shorter term charts such as the 60 minute or 15 minute indicate that the short term downtrend is pausing which will become apparent because a new Dynamic VAP on the 60 or 15 minute chart will form identifying supporting volume entering the market b Stop loss and or stop and reverse below 1 315 at 1 309 85 2 Enter short a Ona break below the 1 315 support the bias becomes bearish and the expectation is that the hole will be traversed Entering short on a break or using similar tactics on a 60 or 15 minute chart once below 1 315 is appropriate b Stop loss would be above 1 315 and preferably above the high of the breakdown bar 95 Trade Timing Smaller time frame charts such as the 60 or 15 minute can be used to further refine an entry but the idea would be to act in the zone of opportunity which is nearest 1 315 Trade Management The target to the upside would be for trade back to the upper region of the high volume
71. ice where a swing is occurring back to the price at the last swing Floaters adjust based on a proprietary swing and momentum algorithm that dynamically calculates the next Floater levels e Use to determine dynamic floating support and resistance e Applicable to charts of any time frame e Provides information for determining potential day trading targets in either direction US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Floaters Chart 20 TAS PRO Floaters on daily US 10 year T note futures Floaters Configurable Inputs Sinai Strencth Sets the signal strength to be considered when forecasting market swings 8 8 1 weak 2 medium 3 strong Default 1 Momentum Sets look back period for the momentum oscillator from which swings are Look Back derived Default 8 57 Floaters Display Settings Resistance 1 Displays first resistance line red Resistance 2 Displays second resistance line light blue Resistance 3 Displays third resistance line light green Support 1 Displays first support line red Support 2 Displays second support line light blue Support 3 Displays third support line light green Pivot Price Projection Current Swing Displays a price pivot projection cyan Displays the open of current swing aqua Open Prior Swing Close Displays the close of the prior swing aqua TAS PRO Pivot Displays a modified pivot point calculation aqua Floaters display up to 10 user selectable h
72. ics and or TAS Pro Dynamic VAP first Only after you are comfortable with these should you consider adding others into your arsenal one at a time In the quiet of the after hours market start viewing charts of various securities and in multiple time frames Make notes on areas of interest in where the TAS Pro Indicator Suite can assist you in the following basic concepts o Identifying low risk trading setups and applications o Identifying entry stop and target points in the market o Accurately measuring the reward to risk of various trading setups o Discriminating between higher quality higher probability market situations vs lower quality lower probability ones especially identifying areas of the market to completely avoid Using just one or two of the indicators experiment with different settings for securities of interest The TAS Pro Indicator Suite is infinitely configurable and adaptable to almost all market conditions Be prepared for them with diligent study and practice in the quiet of the after hours markets As an initial goal you should be looking for continuous process improvement one step at a time not a holy grail tool process or method The tools don t make decisions for you You make good decisions by becoming proficient and well versed in the use of the tools which are a portal to reveal unique attributes and insights into the actions of the markets 17 TAS PRO Discretionary Trading Philosophy
73. ing balance and imbalance areas by measuring volume at price a statistical method for aggregating trading data that has its roots in Auction Market Theory and Market Profile Dynamic VAP profiles are displayed as a series of three horizontal lines The profiles are calculated based on the price action from the previous profile and new profiles are derived from a proprietary swing and momentum algorithm that dynamically calculates the next Dynamic VAP profile e Specifically designed for profiling securities that have a volume component Please see and compare description for TAS PRO Dynamic TAP e Dynamic VAP is usable on all time frames e Thelonger the time frame the more robust the support and resistance areas are that are identified by the unfair low and unfair high e Use to identify low risk high probability areas to trade while measuring relative volatility The top bottom lines of Dynamic VAP profiles are the interim unfair high and unfair low areas respectively The middle line represents the high volume node or point of control which is the area where the most volume occurred in that balanced area When price is trading inside Dynamic VAP profiles it depicts an interim state of market balance an area of trade that is deemed fair to both sides New profiles form after the market moves away from balance to imbalance when new valuations are detected from market data When price goes into imbalance either a new set of Dynamic
74. is a structured and logical approach to analyzing and interpreting the markets that has its foundation in the principles of Auction Market Theory and Market Profile developed by legendary floor trader Peter Steidlmayer The two sciences are complimentary in that Auction Market Theory defines the concepts behind the inner workings of markets and Market Profile is the mathematically and statistically based visual presentation layer of those sound principles These two sciences combined with the TAS PRO Indicator Suite allow market participants to see the markets for what they are and what they are doing not what you hope them to be As Pete Steidlmayer says In an uncertain market it is hard to predict with better than a fifty fifty shot So rather than predicting the idea is to try to understand current market structure and market conditions Then do what the market is doing rather than what you want to do whether it is going with the market or fading the market Although Auction Market Theory and Market Profile tend to be very complex in their typical presentation and take years to understand and master TAS Professional has distilled and simplified these backbone concepts into precision trading tools that reveal what you need to know about the actions of markets Let s take a look at some of these basic concepts First Things First The Context of Time Frame The concept of multiple time frames is one of the greatest chall
75. ith TAS PRO Floating Wall formation on 5 minute S amp P futures 60 Chart 24 TAS PRO Floaters with TAS PRO Floating Wall formation on 5 minute S amp P futures 60 Chart 25 TAS PRO Floaters with Step up Concept on daily chart of gold futures 61 Chart 26 TAS PRO Floaters with Step down Concept on daily Euro futures 62 Chart 27 TAS PRO Floaters combined with VAP MAP to locate key area on daily Euro futures 63 Chart 28 TAS PRO Floaters on daily Natural Gas futures highlighting rotational market trading tactics 64 Chart 29 TAS PRO SwngFloaters on daily 10 year T note futures 65 108 Chart 30 TAS PRO SwngFloaters on daily XOM US Equity highlighting support resistance potential entries and targets plus a very tight TAS PRO Floating Wall Sept 20 Oct 16 67 Chart 31 TAS PRO Windows on daily 10 year T note futures 68 Chart 32 TAS PRO Windows on daily Euro Spot Currency highlighting long short and target areas 69 Chart 33 TAS PRO i Ratio on daily US 10 year T note futures 70 Chart 34 TAS PRO i Ratio on 5 minute S amp P futures highlighting potential long and short areas 72 Chart 35 TAS PRO Vol Delta on daily Euro Spot Currency highlighting long short and target areas 73 Chart 36 TAS PRO Vol Delta on 5 minute S amp P futures highlighting buying interest selling pressure relative strength relative weakness trending and consolidation market states 75 Chart 37 TAS PRO Velocity ROC on daily 10 year T note futu
76. lay Settings 71 i Ratio Specifications and Applications 70 L Learning Resources for the TAS PRO Indicator Suite 96 Legal Notices 3 Liquidity 6 22 23 27 28 106 Live Educational Webinars 97 M Managing a Swing Position 89 Market commentary 6 Market Profile 3 11 12 19 32 33 35 36 38 39 41 42 44 47 101 103 104 105 106 Market structure 12 18 19 Market Structure 101 Market generated data 12 Multiple time frames 12 16 17 19 N Navigator Applications 52 Navigator Configurable Inputs 51 Navigator Display Settings 51 Navigator Specifications and Applications 50 Non trending 24 110 P Persistent Chat moderators 6 Pete Steidlmayer 19 26 Peter Steidlmayer 11 12 18 19 P formation 105 Pivot 21 26 27 28 54 57 66 74 79 91 92 104 105 106 POC 33 34 36 37 39 42 45 48 83 85 87 88 95 104 105 106 Point of control 33 34 36 37 39 42 44 45 47 48 83 85 95 103 104 105 106 Pre recorded Educational Webinars 98 Price 11 12 13 15 17 21 22 23 24 25 26 27 28 30 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 53 54 55 56 57 59 61 62 63 64 65 66 70 71 73 74 77 79 81 82 83 85 86 87 88 90 91 94 103 104 105 106 Profile 12 30 32 33 35 36 38 39 41 42 44 45 46 47 48 49 85 87 90 91 92 94 103 104 105 106 R Risk 4 6 13 14 16
77. leads to any market movement Step 1 A vertical move either up or down is initiated by a market imbalance Step 2 Stopping price to end the vertical move indicating that the last of the supply imbalance or demand is in place Step 3 Development around the stopping price that formed in Step 2 Step 4 The market rebalances the inefficiency of the prior vertical move high volume node The price point where the most volume or trade has occurred at price in a profile Also see point of control POC histogram In statistics a histogram is a graphical representation that displays the distribution of data and is an estimate of the probability of the distribution of the data being measured Histograms display tabular frequencies over discrete intervals bins with an area equal to the frequency of the observations in the interval VAP Map TAP Map Swing VAP and Swing TAP display their data using histograms hole Markets are either balanced or imbalanced Balanced profiles are visibly fat in profile maps as price develops slowly and horizontally through time accumulating volume in a well defined price range Imbalanced profiles are visibly skinny as price moves rapidly and vertically through price levels reflecting an absence of accumulating volume at price These skinny areas in profile maps are known as holes Also see Trading Application Concepts Using TAS PRO Indicators Trading Into a Profile Hole horizontal market A market
78. lishing of price above center TAS PRO FLOATERS and inside of high value area of the TAS PRO VAP MAP is bullish 20 00 04 00 08 00 12 00 16 00 20 00 23 Jan 2011 01 24 02 28 36 24 Jan 2011 24 Jan 2011 Chart 42 TAS PRO VAP Floaters and TAS PRO VAP Map on a 60 minute chart of EUR USD spot currency 87 Trading Concepts Markets are either balanced or imbalanced and VAP Map clearly illuminates these two conditions by exhibiting fat and skinny profiles Fat profiles reflect a market that is moving slowly and horizontally through time in a well defined price range a balanced market Skinny profiles reflect a market that is rapidly and vertically through price an imbalanced market Clearly knowing which of these two mutually exclusive states the market is in dictates our basic trading tactics In a balanced market we buy the lows and or short the highs and in an imbalanced market unless we are attempting a counter trend trade we trade in the direction of the major capital flows that are propelling the market vertically Floaters change when new swings in price are detected We use center Floaters to determine direction with price trading above center Floaters being bullish and below center Floaters being bearish When combining the new swing detection of the Floaters and the balanced or imbalanced information provided from the VAP Map we can detect high probability reversal swings in any market Market Observations
79. maps Swing TAP maps are especially intuitive in large time frames in terms of orienting traders to the general tone and tempo of the market When price is inside the red value area the market bias is horizontal therefore we anticipate strong support and resistance at the extremes of the value area When price does break out of the red value area the market bias is vertical therefore we anticipate the previous value area to become support or resistance Add multiple instances of Swing TAP with different settings to create multiple independent and simultaneously displayed maps that allow for a broader perspective of several areas of the market and how price and time at price action affects the present market especially where there is a confluence of activity TAS PRO Swing TAP Swing TAP identifies areas where there is high time at price accumulation in red and magenta When price is trading within this area the expectation is for rotational range bound trade When price moves outside this area into a low time at price area identfied in blue price tends to move directionally and trend Nye Daily 9 7 2009 2 8 2011 JPY Curncy JAPANESE YEN SPOT Last Pr 82 44 11 Chart 11 TAS PRO Swing TAP on daily JPM US Equity illuminating both horizontal and vertical market movements 44 TAS PRO Dynamic VAP Specifications and Applications Dynamic VAP Dynamic Volume at Price displays a dynamic representation of develop
80. mendation to buy or sell a particular Investment TAS Professional has not undertaken to verify the completeness or accuracy of any of the information and statistics provided by third parties You expressly hold TAS Professional harmless and waive any claim you have or may have as a result of any of the information and statistics provided by third parties contained in this publication being incomplete or inaccurate First edition published 2011 About TAS Professional LLC Trademarks All TAS Professional brands products and services listed here are registered trademarks and are protected by U S trademark law Any unauthorized use without the express written permission of Bloomberg Market Studies or TAS Professional LLC is a violation of the law The trademarks are as follows TAS PRO TAS Professional TAS PRO Indicator Suite TAS PRO Indicators TAS PRO Tools TAS PRO Approach to Trading TAS PRO Dynamic TAP Dynamic Profile TAS PRO Dynamic VAP TAS PRO Volume Boxes TAS PRO Dynamic Profile TAS PRO Boxes TAS PRO Floaters TAS PRO FPCLs TAS PRO i Ratio TAS PRO Market Intelligence TAS PRO Navigator TAS PRO Persistent Chat TAS PRO Persistent Chat Room TAS PRO Pivot TAS PRO Statics TAS PRO Static Price Compression Levels TAS PRO PCLs TAS PRO Swing Floaters TAS PRO Swing Price Compression Levels TAS PRO SPCLs TAS PRO Swing TAP TAS PRO Swing VAP
81. n click the Contact Us link on our website TAS Professional Home Events Incisive Accurate TAS PRO Trading Tools Market Intelligence F Real time Live F AS PRO Market Intelligenc e assists your trading team in achieving superior risk adjusted returns Training amp Support by pros h ent strategies through our unique forward looking research provided both in vi ideo based and printed formats Backed by Actionable E I Research amp Ideas yam read more s ss Ly Indicators li Research Ea Training am Consulting Designed by industry By combining classic technical Recognized by professional Lorem ipsum dolor met Lorem professionals applying the highest and quantitative analysis traders worldwide TAS ipsum dolor met Lorem ipsum standards for quantitative techniques with the TAS Pro Professional Trader Education dolor met Lorem ipsum dolor analysis TAS Professional is Indicator Suite we seek to fasttracks you and your trading met Lorem ipsum dolor met proud to offer our TAS PRO identify areas of outperformance tear to the highest levels of Lorem ipsum dolor met Lorem Indicator Suite exclusively ta relative to the current stage of the proficiency and expertise in ipsum dolor met Lorem ipsum Bloomberg terminal subscribers business cycle deploying the TAS PRO Indicator dolor met Lorem ipsum dolor Suite met Lorem ipsum dolor met read more gt read more read more read more Home S
82. nd Applications 47 TAS PRO Dynamic VAP 5 14 15 31 44 47 84 89 93 TAS PRO Dynamic VAP Specifications and Applications 44 111 TAS PRO Floaters 5 14 15 31 56 59 60 61 62 63 64 81 84 86 TAS PRO Floaters Specifications and Applications 56 TAS PRO Indicator Suite 5 6 11 12 13 14 15 16 17 19 24 26 27 31 96 97 101 102 TAS PRO Indicator Suite Overview of the Indicators 31 TAS PRO i Ratio 5 14 31 70 TAS PRO i Ratio Specifications and Applications 70 TAS PRO Market Intelligence 5 TAS PRO Navigator 5 14 31 50 81 TAS PRO Navigator Specifications and Applications 50 TAS PRO Statics 5 14 15 16 31 53 TAS PRO Statics Specifications and Applications 53 TAS PRO Swing TAP 5 14 31 41 TAS PRO Swing TAP Specifications and Applications 41 TAS PRO Swing VAP 5 14 30 31 TAS PRO Swing VAP Specifications and Applications 35 TAS PRO SwngFloaters 14 31 65 TAS PRO SwngFloaters Specifications and Applications 65 TAS PRO TAP Map 5 14 31 38 TAS PRO TAP Map Specifications and Applications 38 TAS PRO VAP Map 5 14 15 31 32 81 84 86 93 TAS PRO VAP Map Specifications and Applications 32 TAS PRO Velocity ROC 14 31 76 TAS PRO Velocity ROC Specifications and Applications 76 TAS PRO Vol Delta 5 14 31 73 TAS PRO Vol Delta Specifications and Applications 73 TAS PRO VolAdj Price 5 14 31 78 TAS PRO Windows 5 68 69 TAS Professional 3
83. nd Information for our market observations is obtained from sources believed to be reliable but we do not warrant its completeness or accuracy or warrant any results from the use for this or any information provided in our TAS PRO Persistent Chat Rooms TAS PRO Persistent Chat moderators may be trading multiple accounts and or have accounts or investments outside the scope of the TAS PRO Persistent Chat Room However because of timing urgency ongoing chat room commentary technical limitations or any other reason not all trade ideas that moderators encounter will be posted Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight No representation is being made that any account will or is likely to achieve profits or losses similar to those shown TAS Professional s author s publisher s and persistent chat moderators are not providing investment or trading advice and do not make claims promises or guarantees that any suggestions systems trading strategies or information will result in a profit loss or any other desired result By virtue of your subscription paid or otherwise this information is being specifically provided at your request All readers and TAS PRO Persistent Chat Room participants assume all risk including but not limited to the risk of trading losses THIS PUBLICATION IS NOT A SOLICITATION TO BUY OR SELL SECURITIES Always seek the advice of your prof
84. nd display multiple areas that have a high probability of providing support and resistance These levels of support and resistance are appropriate for use as intraday entry levels as well as intraday exit targets e Static levels are set upon the open of the trading session and remain at the same levels hence static throughout the session e Static levels are algorithmically determined using daily data or a defined time range within a 24 hour period e Applicable only to intraday charts of all time frames e Provides information for determining support and resistance levels as well as potential intraday trading targets in either direction US 10YR T NOTE FUT Mar11 60 Minute Candle Chart TAS PRO Statics A ei LeBel aad etal eal aal 06 Jan 2011 07 Jan 2011 10 Jan 2011 11 Jan 2011 12 Jan 2011 13 Jan 2011 101 14 11 40 41 18 Jan 2011 Chart 18 TAS PRO Statics on intraday US 10 year T note futures Statics Configurable Inputs Exclude Weekends Sets toggle to exclude or include weekends Default checked 54 Configuration Notes e Statics are only affected by changing the opening and closing time parameters for the trading session displayed or by toggling the Exclude Weekends setting Statics Display Settings Resistance 1 Displays first resistance line red Resistance 2 Displays second resistance line light blue Resistance 3 Displays third resistance line light green Support 1 Displays first support line red S
85. ne horizontal green line inside the value area GREEN that indicates the fattest part of the profile widest left to right This is called the Point of Control POC in Market Profile nomenclature Represents an area where there are fewer traders are willing to transact and is PURPLE y referred to as price being outside of the value area Represents a relatively narrower area on the TAP Map where there is BLUE relatively low interest on the part of the crowd These areas are commonly formed by runaway gaps or rejection tails TAP Map Applications e TAP Maps reveal that markets have the tendency to trade slowly and horizontally within the red area of the TAP Map and they trade rapidly and vertically outside of the boundaries of maps e TAP Maps are especially intuitive in large time frames in terms of orienting traders to the general tone and tempo of the market e When price is inside the red value area the market bias is horizontal therefore we anticipate strong 40 support and resistance at the extremes of the value area e When price does break out of the red value area the market bias is vertical therefore we anticipate the previous value to become support or resistance e Create multiple independent and simultaneously displayed TAP Maps to get a broader perspective of several areas of the market and how price and time at price action affects the present market especially where there is
86. new Floaters flipping price to the other side of the center Floaters Give extra weight and attention to a high potential pause in price at VAP Map s POC and most importantly a change in Floaters 89 Trading Application Managing a Swing Position Trading Concept Managing a Swing Position Instrument Traded Time Frame BPH11 GBPUSD Future 120 minute chart Indicators Used TAS PRO Dynamic VAP and TAS PRO Navigator Market Market starts a new potential uptrend after several days in a balanced state Characteristics which follows a downtrend that had lost momentum Look for long exposure based on shift in momentum from downtrend to Tradin Premi ading Eremise balance then back to potential uptrend 30 Day Chart W BPA Curncy Last Price 158 08 3 54 W Unfair High 158 254 W poc 157 718 E Unfair Low 157 718 AE 10 Jan 2011 Chart 43 TAS PRO Dynamic VAP and TAS PRO Navigator on 30 day chart of BPA currency Trading Concepts Markets trade in only one of two mutually exclusive two states horizontally sideways or vertically directional The astute trader has trained his eye to recognize which of these two states the market is in and use that as a primary input to almost all trading decisions 90 However when there is a transition from vertical to horizontal from which traders will look for the next vertical there is often not enough information in just price alone to make an accurate assessment Precision indica
87. ng Average setting for example 6 3 or 8 4 e Faster time charts may prefer slower indicator settings for smoother readings for example on 30 minute charts the settings for Look Back Period and Moving Average could be 10 5 or 16 8 respectively 71 i Ratio Display Settings Ratio Displays the i Ratio red Moving Average Displays the moving average of i Ratio light blue i Ratio is displayed in the form of a stochastic indicator format using the overbought oversold scale reading Readings of 40 are considered overbought 40 as oversold i Ratio is best used in conjunction with our other indicators for maximum accuracy i Ratio is effective for traders trying to identify entry points in live active trade where price is making anew higher low or lower high This is especially true for securities that are notorious for camouflaging subtle areas that often offer relatively lower risk entry points i Ratio Applications refer to Chart 34 on the following page i Ratio is most helpful at confirming price when price may be at an area of divergence to locate and target higher probability entries and exits As arule of thumb price should move freely in same direction of indicator and in proportionate range of movement When price fails to move proportionately as much as i Ratio moves or stalls then look for divergence relative to other key areas of support or resistance using other TAS PRO Indicators such as Navigator Stati
88. ns and Applications 73 VolAdj Price Configurable Inputs 78 VolAdj Price Display Settings 79 VolAdj Price Specifications and Applications 78 Volatility Adjusted Price See VolAdj Price Volume 11 13 15 17 18 22 28 32 33 34 35 36 37 38 39 40 41 42 43 44 47 53 70 73 74 81 86 87 90 94 95 104 105 106 Volume Delta See Vol Delta V pivots 25
89. o correctly use the TAS PRO Indicator Suite in multiple time frames increases your edge over single time frame analysis Charts have memory The price levels where the crowd has traded before are likely to be levels of interest again Our TAS PRO Approach to Trading coupled with the TAS PRO Indicator Suite reveals the footprints of the crowd We believe that there is no single best answer to understanding market behavior However we have developed TAS PRO Indicator Suite to model a professional institutional style of market analyses that we feel reveals the most important information about the markets And we are constantly adapting our indicators to reflect ongoing changes in the market s environment True market professionals do not kid themselves about the complexity of their undertaking At TAS Professional our goal in all of our training is to help you dramatically shorten the learning curve by providing world class education ongoing training and responsive support Proficiency in navigating the markets is a journey not a destination And complacency is the enemy of proficiency We believe that all market participants must accept that lifelong learning and ongoing study of your craft is mandatory and part of the business We are like professional athletes and must continue to train to be the best we can be We are all works in progress We believe that in the trading arena there are no get rich quick schemes If you are lo
90. o move slowly and horizontally versus fast and directionally Swing VAPs employ the concepts of statistical probability distribution and have their basis in Auction Market Theory and Market Profile Swing VAPs reflect price action relative to the volume traded within the delineated map area e NOTE Also see Bloomberg Cheat Sheets for VAP Map TAP Map and Swing TAP as there are subtle but important differences between these tools e Gradient rich intuitive color coded display delineates where volume is accumulating or not accumulating at price e Provides key insights as to where the market is likely to move slowly and develop horizontally through time versus where the market is likely to move rapidly and vertically through price levels e Adaptable to any time frame or tradable instrument that has volume e Multiple instances of right facing and or left facing profile Swing VAPs of different look back swings may be placed on the same chart e Customizable horizontal line resolution with key area highlights US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Swing Map Chart 6 TAS PRO Swing VAP on the daily US 10 year T note futures 36 Swing VAP Configurable Inputs Signal Strength Momentum Look Back Density Map Starts at Swing Map Ends at Swing Extend High Volume Node Sets the signal strength to be considered when forecasting market swings 1 weak 2 medium 3 strong Default 1 Sets
91. oking for a few get rich quick ideas we are likely not the right company for you On the other hand if you are realistic about the difficulty and magnitude of your undertaking then we can help 18 e The application of any new skill requires time dedication and consistent effort Legendary CBOT trader Peter Steidlmayer says Education provides a foundation and method for learning but knowledge comes through experience Practice makes perfect Don t miss the opportunity to practice what you learn before you apply what you know e We acknowledge that no two market participants are identical in their approach to the markets Therefore we teach multi dimensional styles of rules based analysis tactics and strategies in our TAS PRO Persistent Chat Room educational online webinars and live seminars e According to the TAS PRO Approach to Trading our goal is to objectively read and interpret the market according to the tenants of market structure Auction Market Theory volume and volatility analysis We look forward to working with you and your unique attributes We will treat you as a unique individual with unique qualities and work our hardest to help you capitalize on them We applaud your efforts to learn and grow in your market discipline and we welcome and value your contributions to the worldwide community of dedicated market participants 19 The TAS PRO Approach to Trading The Basics The TAS PRO Approach to Trading
92. or from which swings Look Back are derived Default 5 Swings Back User selectable number of swings back Default 4 66 SwngFloaters Display Settings Resistance 1 Displays first resistance line red Resistance 2 Displays second resistance line light blue Resistance 3 Displays third resistance line light green Support 1 Displays first support line red Support 2 Displays second support line light blue Support 3 Displays third support line light green Pivot Price Projection Current Swing s Displays a price pivot projection cyan Displays the open of current swing aqua Open Prior Swing s Close Displays the close of the prior swing aqua TAS PRO Pivot Displays a modified pivot point calculation agua SwngFloaters display up to 10 user selectable horizontal lines The first areas of support and resistance are plotted as red lines on either side of the Pivot Price Projection line Outside the red lines support and resistance areas are designated by light blue lines Outside the light blue lines support and resistance areas are designated by light green lines SwngFloaters Applications Also see Trading Applications for Floaters Section Note We collectively refer to Pivot Price Projection Today s Open Yesterday s Close and TAS PRO Pivot the four center cyan aqua lines as Center Lines Use SwngFloaters as support and resistance areas for both entries and targets When price is tradin
93. orizontal lines The first areas of support and resistance are plotted as red lines on either side of the Pivot Price Projection line Outside the red lines support and resistance areas are designated by light blue lines Outside the light blue lines support and resistance areas are designated by light green lines Floaters Applications Also see Trading Applications for Floaters Section Note We collectively refer to Pivot Price Projection Today s Open Yesterday s Close and TAS PRO Pivot the four center cyan aqua lines as Center Lines Use Floaters as support and resistance areas for both entries and targets When price is trading inside Center Lines the market is said to be balanced When price is trading below Center Lines the market bias should be to the downside When price is trading above Center Lines the market bias should be to the upside When Center Lines are spread out over a wider range watch for a more rotational and less directional trading session 58 e Atightly compacted concentration or overlapping of Center Lines designates an area of particularly strong support resistance levels that provide a high probability lower relative risk area for entries of extended directional moves e Red Floaters are projected rotational highs and lows where Anticipate buying the lows and shorting the highs of the range giving preference to the trend in the next higher time frame s e Above Resistance 1 and bel
94. ote futures TAS PRO Windows Configurable Inputs Signal Strength Sets the signal strength to be considered when forecasting market swings 6 6 1 weak 2 medium 3 strong Default 1 Momentum Sets the look back period for the momentum oscillator from which swings Look Back are derived Default 8 Base Time Frame Sets the multiplier for the time frame of the chart being viewed for Multiplier analysis by the algorithm Default 3 69 TAS PRO Windows Display Resistance Resistance level or target for long positions brown Support Support level or target for short positions tea TAS PRO Windows Applications refer to Chart 32 below e Use the Support line as a target for shorts or an entry for longs e Use the Resistance line as a target for longs or an entry for shorts e If TAS PRO Windows is displaying a single spike it is indicating that the price movement in the direction of the spike is being rejected and a move in the opposite direction is likely o Aspike is must not last more than three bars to qualify as a spike o The shorter the spike a single bar for example the stronger the indication e IfTAS PRO Windows displays several spikes in a row in a single direction or in opposing directions it is indicating that price is likely to consolidate and that trade will be rotational EUR Curncy EURO SPOT Daily Candle Chart TAS PRO Windows 1 8 3 Spike up indicates price unable to move up short against re
95. ould end Map Ending Bas Bar 0 is the current bar Default 0 Contents Legal NOtiCes eccsccccevececccestensvecueedescveceucvevevencvevevcenveceveonucdeveseucvcdesescdedevevadeveseusdeviey desdeveudosdevevevereceseverceeeevencs 3 About TAS Professional LLC Trademarks cssssssssccceceessssssneccccccessssssseeseceeesesssssseasceeeesessssseeneeeeeseeeens 5 Disclaimer and Risk Warning ccccesseeceseesseceesesseeeeseesceeeesessnseesessesceseesceeeesesseeeeseeseeeeseesseeeesenseseeseses 6 About This Publication s cccesccccesetecctesedecccveceecccvescensecescvnccccsdsuccvevevencdcsevencdccevecsuceveedtecevdondevevesedcetevesscedeeveets 7 ELLE ERER ATTE OTT te ecadetacebedezaceeesesaceeeseeucecos asacesog ae A 8 ROreWordi asnan naaa Te a e EEE lates raetran te 11 IEFOCUCEION PEETA ATATA O TTET 12 What This Manual COVE S o e E E E E O EEEN S 14 Suggested Process for Studying and Learning the TAS PRO Indicator Suite seeseseeeeeseeeseseeessseessssseess 16 TAS PRO Discretionary Trading Philosophy s seeessosssessoessseesseossoossoesnsessseessnessossnsssesressoessossnsssssressoesso 17 The TAS PRO Approach to Trading The Basics sssccccssseccecesseecesesseeceeeesseeeesesseeeeseeseeeeesesseeeeseeses 19 First Things First The Context of Time Frame csssccssscceeeessccecesseceeseseeceeessaceecesseceesessneeeessaeeesessaeeeeesseeeeenaes 19 There Are Only Two Things a Market Can Do ccccccsscces
96. our stop to breakeven In this case the rightmost Dynamic VAP profile see red arrow shows that no significant new unfair highs are reached the range is narrower and Navigator is decreasing with its first lower pivot high from the 0 side The stop is placed 5 pips below the last unfair low and volatility stops out the remaining position with a respectable R R nearing 7 1 93 Trading Application Trading into a Profile Hole Trading Concept Trading into a Profile Hole Instrument Traded Time Frame Gold GC1 Daily Chart Indicators Used TAS PRO VAP Map TAS PRO Dynamic VAP Market Gold has been in a multi month consolidation and is testing the unfair lows of Characteristics the rotation distribution A hole in the VAP Map is highlighted below Trading Premise Buying unfair lows for rotational long or selling short a break into a hole Gold Futures Daily Candle Chart TAS PRO VAP Map 210 5 250 TAS PRO Dynamic VAP 2 7 7 ill iat If price enters a hole in the VAP Map it is common to see price action speed up and become trending persistent in nature until reaching the opposite side of the hole GC1 Comdty COMEX Gold 100 Troy Ounces F 1324 9001 H Unfair High 1388
97. oves outside the top of a Dynamic TAP profile a a breakout has occurred b the market bias is directional to the upside c and the relative vertical speed of movement through price levels will likely increase When price moves outside the bottom of a Dynamic TAP profile a a breakdown has occurred b the market bias is directional to the downside c and the relative vertical speed of movement through price levels will likely increase When breakouts and breakdowns occur above and below Dynamic TAP profiles there is a high probability that the new directional move will remain intact until a new Dynamic TAP profile occurs Previous Dynamic TAP profiles to the left in the chart are support or resistance areas where the market will either pause and reverse or pause consolidate and then resume the current directional move Dynamic TAP profiles that are narrower top to bottom area relatively lower volatility states and provide relatively lower risk entry opportunities as contrasted to wider Dynamic TAP profiles which are relatively higher volatility states e When price is trading inside a Dynamic TAP profile we look to buy the lows in the range and or short the highs To improve trading odds in this situation give directional preference to the next one or two higher time frames 49 Daily 10 20 2009 1 21 2011 i W JPYUSD Curncy JPY USD X RATE Last Pr 0 0121 TAS PRO Dynamic TAP W Unfair High 0 0122 E
98. ow Support 1 red Floaters markets are considered to be trending Daily 4 8 2009 1 21 2011 TAS PRO Floaters XOM US Equity Exxon Mobil Corp Last 78 98 W Resistance 1 I Resistance 2 H Resistance 3 W Support 1 W Support 2 E Support 3 E Pivot Price Projection Wi Current Swing Open H Prior Swing Close EE TAS PRO Pivot Resistance eo rH A tight clustering of the center pivot lines provides superior support for long entry And superior resistance if price is below the tight clustering Chart 21 TAS PRO Floaters on daily XOM US Equity displaying TAS PRO Floating Walls the clustered support levels 59 Trading Applications for TAS PRO Floaters Emini S amp P ES1 5 min Candle Chart TAS PRO Floaters 1 8 27 00 H Resistance 3 E Support 1 E Support 2 E Support 3 I Pivot Price Projection Wi current Swing s Open i Prior Swing s Close EE TAS PRO Pivot Chart 22 TAS PRO Floaters on 5 minute S amp P futures Floaters Floating Wall Trading Concept e Trading Concept We collectively refer to Pivot Price Projection Current Swing Open Prior Swing Close and TAS PRO Pivot as Center Lines A TAS PRO Floating Wall formation takes place when all of the Center Lines converge in a very tight range creating a very narrow price range and give the effect of a wall ceiling of resistance supply or a wall floor of support demand e Long Entry If price is trading above
99. peat Map Extend High Volume Node Sets the number of price bars ago where the VAP Map should start from Bar 0 is the current bar Default 30 Sets the number of price bars where the VAP Map should end Bar O is the current bar Default 0 Sets horizontal line resolution in profile histograms on the vertical price axis Default 5 When checked VAP Map stays in fixed position based on Map Starting Bar and Map Ending Bar inputs When unchecked VAP Map moves one bar at a time per each new bar displayed in chart under observation Default checked When checked automatically repeats the VAP Map at set intervals determined by the inputs Map Starting Bar and Map Ending Bar Default unchecked When checked this input sets the high volume node Point of Control POC to print across the screen to the right Default unchecked e Right facing vs left facing VAP Maps To create a right facing VAP Map where the narrowest part of the map points to the right Map Starting Bar must be greater than Map Ending Bar To create a left facing VAP Map Map Starting Bar must be less than Map Ending Bar e Map Density If the VAP Map encompasses a large trading range consider increasing the Density setting to better fill out the VAP Map Alternatively if the trading range is narrower it may be hard to see each line making up the VAP Map in which case decrease the Density setting VAP Map Display Settings RED GREEN PURPL
100. philosophy 14 Dynamic profile 103 Dynamic TAP Applications 48 Dynamic TAP Configurable Inputs 48 Dynamic TAP Display Settings 48 Dynamic TAP Specifications and Applications 47 Dynamic Time at Price Profile See Dynamic TAP Dynamic VAP Applications 45 Dynamic VAP Configurable Inputs 45 Dynamic VAP Display Settings 45 Dynamic VAP Specifications and Applications 44 109 E Educational Books and Publications 100 Educational Webinars 97 F Floaters 5 29 56 57 58 61 62 63 64 66 83 86 87 88 104 Floaters Applications 57 Floaters Configurable Inputs 56 Floaters Display Settings 57 Floaters Key Area Trading Concept 63 Floaters Rotational Market Entry Trading Concept 64 Floaters Specifications and Applications 56 Floaters Step down Trading Concept 62 Floaters Step up Trading Concept 61 Floating Dynamic Profiles See Floaters Floating Wall Trading Concept 59 Four Steps of Market Activity 104 G Glossary of Terms 103 H High probability 13 20 44 45 47 48 52 53 55 58 67 90 Histogram 32 35 38 41 51 52 82 104 105 106 Histogram Color Legend 51 Hole 93 94 95 104 Horizontal market 21 104 106 Imbalance 12 22 24 25 26 32 35 38 44 47 81 82 104 Imbalanced market 22 81 82 85 87 94 Imbalanced profile 105 Inverted V pivot 104 106 Inverted V pivots 25 i Ratio Applications 71 i Ratio Configurable Inputs 70 i Ratio Disp
101. ping bars This dynamic movement of TAS PRO Indicator maps with user selectable functionality such as VAP Map TAP Map Swing VAP and Swing TAP allows traders to stay focused on new trading information as the market reveals itself 31 TAS PRO Indicator Suite Overview of the Indicators This section overviews the basic capabilities of the indicators included in the TAS PRO Indicator Suite Please be sure to thoroughly familiarize yourself with the basic functionality of each separate indicator before progressing to the applications section of this playbook We have grouped the indicators into the following functional categories Profiling Maps e TAS PRO VAP Map e TAS PRO Swing VAP e TAS PRO TAP Map e TAS PRO Swing TAP Dynamic Profiles e TAS PRO Dynamic VAP e TAS PRO Dynamic TAP Composite Indicators e TAS PRO Navigator Market Pivots Price Compression Levels e TAS PRO Statics e TAS PRO Floaters e TAS PRO SwngFloaters Timing and Trade Purifying Tools e TAS PRO Windows e TAS PRO i Ratio e TAS PRO Vol Delta e TAS PRO Velocity ROC e TAS PRO VolAdj Price 32 TAS PRO VAP Map Specifications and Applications VAP Map Volume at Price Map dynamically calculates and displays a sideways color coded frequency distribution histogram that is set to a user definable fixed number of look back bars VAP Maps can either remain fixed in place or move forward one bar at a time as new bars are printed on a chart The
102. r basic trading tactics In a balanced market we buy the lows and or short the highs and in an imbalanced market unless we are attempting a counter trend trade we trade in the direction of the major capital flows that are propelling the market vertically Market Observations e VAP Map exhibits a skinny profile in the upper portion of the map and therefore is in a trending market state e Current Dynamic VAP has clear defined range e The top of the Dynamic VAP red line at 1255 75 has been clearly broken to the upside with a wide range bar that closes near its high Trading Plan 1 Using support and resistance levels on shorter term time frame in this case both a 60 15 minute time frame not shown is suggested for entry 2 We will be looking exclusively for one of the following events and taking the following action with respect to the current support and resistance on 60 minute chart not shown a Longentry is taken at the bottom of the current 60 minute Dynamic VAP as long as price is also equal to or higher than the point of control POC on VAP Map b Long entry can be taken on breakout of current 60 minute Dynamic VAP c Long entry can be taken immediately if price is already above current 60 minute Dynamic VAP using 15 minute time frame or lower Trading Timing To the long side in this case use shorter time frame Dynamic VAP and VAP MAP to time your trades when daily time frame is trading vertical to the current Dynamic VAP an
103. r determining swings in price It differs from the traditional swings in price in that it is very effective at eliminating price noise in charts This feature helps traders ignore noise and focus on the overall price movement in both sideways and trending markets The traditional technical definition of a price swing high is a price formation where a peak high in price is preceded and followed by a lower high on both sides of a peak price high The traditional technical definition of a price swing low is a price formation where a peak low in price is preceded and followed by a higher low on both sides of a peak price low The following chart illustrates some swing highs SH and swing lows SL 29 Chart 1 Example of candlestick chart with swing highs and swing lows marked While the traditional swing high low markers provide valuable information we want to be careful not to overweigh the information The TAS PRO Approach to Trading smoothes out the noise with its proprietary algorithms that are used in the both Dynamic VAP and Floaters Let s look at these concepts in more detail The following chart shows an example of the Swing VAP Swing Volume at Price indicator where the parameters Map Starts at Swing is set to 0 and Map Ends at Swing is set to 3 Swing VAP includes trading data from 08 00 to 12 00 bl fi Mt ang Chart 2 TAS PRO Swing VAP on 5 minute S amp P futures before a new swing is detected The
104. rea to demarcate support or resistance Create multiple independent and simultaneously displayed maps to get a broader perspective of several areas of the market and how price and volume at price action affects the present market especially where there is a confluence of activity VAP Map identifies areas of high and low accumulation of volume at price Areas of high accumulation Future levels of support resistance Areas of low accumulation Price action is likely to speed up and move directionally through the low volume price area Oct Chart 5 TAS PRO VAP Map on the daily IBOV Index with five user configured distributions 35 TAS PRO Swing VAP Specifications and Applications Swing VAP displays a sideways color coded frequency distribution histogram that is set to a user definable number of look back swings in a market Swings are derived from a proprietary swing and momentum algorithm that dynamically calculates the next Swing VAP These profile maps are overlaid onto price bars to graphically represent areas of market balance and imbalance where the market is likely t
105. res 76 Chart 38 TAS PRO Velocity ROC on 5 minute NASDAQ E mini futures identifying up and down trending conditions 77 Chart 39 TAS PRO VolAdj Price on 30 minute NASDAQ e mini chart 78 Chart 40 TAS PRO VAP Map TAS PRO Floaters and TAS PRO Navigator daily chart of Euro Spot showing hard right edge of screen and projection area to the right of the line 81 Chart 41 TAS PRO VAP Map and TAS PRO Dynamic VAP on daily chart of e mini S amp 84 Chart 42 TAS PRO VAP Floaters and TAS PRO VAP Map on a 60 minute chart of EUR USD spot currency 86 Chart 43 TAS PRO Dynamic VAP and TAS PRO Navigator on 30 day chart of BPA currency 89 Chart 44 TAS PRO Dynamic VAP and TAS PRO Navigator illustrating trading setup 90 Chart 45 TAS PRO Dynamic VAP and TAS PRO Navigator illustrating trade management 91 Chart 46 TAS PRO VAP MAP TAS PRO Dynamic VAP and TAS PRO Navigator illustrating hole in profile 93 Index A Auction Market Theory 12 18 19 32 35 38 41 44 101 103 105 106 B Balance 12 22 24 26 32 35 38 41 44 47 82 89 91 94 Balance leads to imbalance 24 Balanced market 22 81 82 85 87 94 b formation 103 Bloomberg 3 5 7 11 32 35 38 41 96 Breakdown 45 48 95 103 Breakout 45 48 84 85 103 C Confirmation bias 15 103 Constrained by liquidity 22 103 106 Continuous process improvement 16 D Demand 12 13 26 45 48 59 61 64 104 Disclaimer 6 Discretionary trading
106. s e Ability to place multiple right facing and or left facing TAP Maps of different look back lengths on the same chart e Customizable horizontal line resolution with key area highlights US 10YR T NOTE FUT Mari1 i Daily Candle Chart stot t TAS PRO TAP Map on No i Mi pi Chart 8 TAS PRO TAP Map on the daily US 10 year T note futures 39 TAP Map Configurable Inputs Map Starting Sets the number of price bars where the TAP Map should start from Bar Default 25 Map Ending Sets the number of price bars where the TAP Map should end Bar Default 0 Sets horizontal line resolution in profile histograms on the vertical price axis Density Default 50 When checked TAP Map stays in fixed position based on Map Starting Bar Keep Map i Static and Map Ending Bar inputs When unchecked map moves one bar at a time per each new bar displayed in chart under observation Default checked Auto Repeat When checked automatically repeats the TAP Map at set intervals determined Map by the inputs Map Starting Bar and Map Ending Bar Default unchecked Extend High When checked this input sets the high volume node point of control POC to Volume Node print across the screen to the right Default unchecked TAP Map Display Settings A relatively wider horizontally developed area on the TAP Map which reflects a RED relatively higher concentration of where price traded most frequently Each TAP Map will have at least o
107. s in this playbook to become familiar with some of the applications that are part and parcel of the TAS PRO Approach to Trading training courses The markets are dynamic and ever changing And our trading tools readily adapt to changing market environments and conditions Therefore this publication is an ongoing document which we will be adding to as new techniques methods and applications become available For this edition we will overview and cover application concepts related to the following 15 TAS PRO Indicators e TAS PRO VAP Map e TAS PRO Swing VAP e TAS PRO TAP Map e TAS PRO Swing TAP e TAS PRO Dynamic VAP e TAS PRO Dynamic TAP e TAS PRO Navigator e TAS PRO Statics e TAS PRO Floaters e TAS PRO SwngFloaters e TAS PRO Windows e TAS PRO i Ratio e TAS PRO Vol Delta e TAS PRO Velocity ROC e TAS PRO VolAdj Price Before we get started with an overview of TAS Professional s basic discretionary trading philosophy let s cover some basic points about the TAS PRO Indicator Suite e Each of these indicators may be used on their own or as part of an overall system of trading tactics and strategies e Take your time to become competent and confident in using the tools Diligent study practice and repetition under no risk low risk market conditions are the mother of skill Be smart and judicious and give yourself time to adapt and integrate the indicators to your specific methods and applications 15 e The indicators come with de
108. scillator from which swings are derived Default 8 Sets horizontal line resolution in profile histograms on the vertical price axis Default 60 Sets look back for number of swings to start a Swing TAP profile map Default 2 Sets look back for ending number of swings to end a Swing TAP profile map Default 0 When checked this input sets the high volume node point of control POC to print across the screen to the right Default unchecked Swing TAP Display Settings RED GREEN PURPLE BLUE A relatively wider horizontally developed area on the Swing TAP map which reflects a relatively higher concentration of time at price traded Each Swing TAP map will have at least one horizontal green line inside the value area that indicates the fattest part of the profile widest left to right This is called the point of control POC in Market Profile nomenclature Represents an area where there are fewer traders willing to transact and is referred to as price being outside of value Represents a relatively narrower area on the Swing TAP map where there is relatively low interest on the part of the crowd These areas are commonly formed by runaway gaps or rejection tails 43 Swing TAP Applications Swing TAP maps reveal that markets have the tendency to trade slowly and horizontally within the red area of the Swing TAP map and they trade rapidly and vertically outside of the boundaries of
109. sdictions other than Argentina Bermuda China India Japan and Korea the BLP Countries BFLP is a wholly owned subsidiary of Bloomberg L P BLP BLP provides BFLP with all global marketing and operational support and service for these products and distributes the BPS either directly or through a non BFLP subsidiary in the BLP Countries All rights reserved Market Profile is a registered trademark of the CME CBOT All rights reserved This publication contains the author s opinions and is designed to provide accurate and authoritative information It is published with the understanding that the author publisher and Bloomberg L P are not engaged in rendering legal accounting investment planning or other professional advice The reader should seek the services of a qualified professional for such advice the author publisher and Bloomberg L P cannot be held responsible for any loss incurred as a result of specific investments or planning decisions made by the reader This publication has been prepared by TAS Professional LLC It has no regard to the specific investment objectives financial situation or particular needs of any specific recipient This book is based on information obtained from sources believed to be reliable but no independent verification has been made nor is its accuracy or completeness guaranteed This book is published solely for informational purposes and is not to be construed as a solicitation or
110. se profile maps are overlaid onto price bars to graphically represent areas of market balance and imbalance where the market is likely to move slowly and horizontally versus fast and directionally VAP Maps employ the concepts of statistical probability distribution and have their basis in Auction Market Theory and Market Profile VAP Maps reflect price action relative to the volume traded within the delineated map area e NOTE Also see Bloomberg Cheat Sheets for Swing VAP TAP Map and Swing TAP as there are subtle but important differences between these tools e Gradient rich intuitive color coded display delineates where volume is accumulating or not accumulating at price e Provides key insights about where the market is likely to move slowly and develop horizontally through time versus where the market is likely to move rapidly and vertically through price levels e Adaptable to any time frame or tradable instrument that has volume e Ability to place multiple right facing and or left facing VAP Maps of different look back lengths on the same chart e Customizable horizontal line resolution with key area highlights Aug 31 Sep 15 Sep 30 Oct 15 Oct 29 Nov 15 Nov 30 Dec 15 Dec 31 Jani4 Jan31 2010 2011 Chart 4 TAS PRO VAP Map illuminates three volume at price distribution numbered areas and two holes 33 VAP Map Configurable Inputs Map Starting Bar Map Ending Bar Density Keep Map Static Auto Re
111. ses Natural Gas NG1 Daily Candle Chart TAS PRO Floaters 1 8 EE NG1 Comaty NYMEX Hefry Hub Natural Gas 4 337 H Resistance 1 4 92 Mi Resistance 2 Resistance 3 Wi Support 1 W Support 2 Wi Support 3 Ii Pivot Price Projection H current Swing s Open i Prior Swing s Close II TAS PRO Pivot hug26 7 Aug31 Sep8 Sep 15 Sep22 Dctis Oct 22 2010 Chart 28 TAS PRO Floaters on daily Natural Gas futures highlighting rotational market trading tactics 65 TAS PRO SwngFloaters Specifications and Applications SwngFloaters Swing Floaters are dynamic indications of support and resistance which self adjust and adapt to varying market swing conditions SwngFloaters are calculated from the current price where a swing is occurring back to the price at the last user selectable swing e Use to determine dynamic floating support and resistance e Applicable to charts of any time frame e Provides information for determining potential day trading targets in either direction US 10YR T NOTE FUT Mar11 Daily Candle Chart TAS PRO Swing Floaters Nov 15 Nov 22 an 14 Jan 24 Nov 30 Dec 8 010 112 02 10 Chart 29 TAS PRO SwngFloaters on daily 10 year T note futures SwngFloaters Configurable Inputs Sets the signal strength to be considered when forecasting market swings enal rengin 1 weak 2 medium 3 strong Default 1 Momentum Sets look back period for the momentum oscillat
112. sistance line is i aot ter 07 ltt j Long lJ Short pel try ee Target 77 Long 11 90 Spike down indicates price unable to move Daily 4 5 2006 2 3 2011 down go long against support line EUR Curncy EURO SPOT Last Price 1 3614 0197 B Resistance 1 367 E Support Sep 30 Chart 32 TAS PRO Windows on daily Euro Spot currency highlighting long short and target areas 70 TAS PRO i Ratio Specifications and Applications i Ratio is a leading indicator which helps with the forecasting of short term price movements It is best used for gauging target areas for entry and exits points e Designed to identify when price movement is not confirmed by volume and volatility in market moves where price lacks momentum conviction and follow through e Levels are determined using daily data or a defined time range within a 24 hour period However i Ratio is applicable for intraday charts only e Provides helpful information for determining potential day trading targets in either direction 4 i US 10YR T NOTE FUT Mar11 a Daily Candle Chart atot P ii bo Jo Jan 7 Jan 14 Jan 24 Chart 33 TAS PRO i Ratio on daily US 10 year T note futures i Ratio Configurable Inputs Look Back Period Sets the desired look back period Default 10 Moving Average Smoothing factor Default 3 Configuration Notes e Asarule of thumb Look Back Period should be twice or more the Movi
113. splayed in green Moving Average The moving average of Velocity ROC is displayed in red Zero Line The zero line is displayed in blue 77 Velocity ROC Applications The greater the relative distance Velocity ROC is away from the red moving average line the more directional and or volatile the conditions are The closer the Velocity ROC is to the red moving average line the more range bound or horizontal the conditions are Divergences in price action against Velocity ROC action may identify reversal conditions When Velocity ROC is below the blue zero line the bias is towards bullishness above the blue zero line the bias is towards bearishness Use crosses of the red moving average line as timing triggers Velocity ROC is often an inverse of price rising as price falls and declining as price rallies The moving average of Velocity ROC red line can be used as a timing tool The following chart illustrates this concept Nasdaq Mini NQ 5 minute Candle Chart NQ1 W Velocity ROC W Moving Average Zero 5 Day Chart Scrolling ME E Mini NASDAQ 100 Index F 2272 00 10 50 P2280 TAS PRO Velocity ROC 14 4 15 20 Jan 2011 Chart 38 TAS PRO Velocity ROC on 5 minute NASDAQ E mini futures identifying up and down trending conditions 78 TAS PRO VolAdj Price Specifications and Applications VolAdj Price Volatility Adjusted Price is a short term indicator best suited to aid in confirma
114. step down condition on an average strength day consider a short entry when the security rallies into Resistance 1 from below which the first major resistance supply area Euro futures EC1 Daily Candle Chart TAS PRO Floaters 1 8 HB EC1 Curncy Generic 1st EC Future L 1 3625 H Resistance 1 Mi Resistance 2 H Resistance 3 Hi Support 1 E Support 2 H Support 3 I Pivot Price Projection W Current Swing s Open H Prior Swing s Close IB TAS PRO Pivot May 14 May 28 Chart 26 TAS PRO Floaters with Step down Concept see red arrows on daily Euro futures 63 Floaters Key Area Trading Concept gt EE EC1 Curncy Generic 1st EC Future L 1 3629 0163 H Resistance 1 1 4027 Trading Concept A simple way to identify key trading areas in advance is to use the VAP Map or the Dynamic VAP indicators on a higher time frame When a key area is defined but counter to the trend underway Floaters can help you determine the best entry or whether or not to pass on entering a trade at that key area Long Entry a When a key trading area from a higher time frame aligns with either Support 1 or Support 2 a long entry is indicated when price pulls back into these areas from above Long Entry b When a key area defined on a higher time frame is in between any two Floater Support levels then waiting for a new set of Floaters and for price to trade above the TAS PRO Pivot first is recommended Short Entry a W
115. sured as one standard deviation of all data above and below the point of control POC V pivot A technical market formation where a rapid move to the downside is immediately followed by an equal or near equal retracement to the upside leaving a chart formation resembling the letter V Also see inverted V pivot VAP see volume at price vertical market A market that is up trending through price contrasted with a horizontal market that is characterized by a series of relatively higher price pivot lows and price pivot highs volume at price VAP A method for dynamically calculating and displaying aggregated trading data based on how much volume is trading and accumulating at discreet price levels Based on Auction Market Theory and Market Profile volume at price is a core concept that is used to create frequency distribution histograms 107 Table of Charts Chart 1 Example of candlestick chart with swing highs and swing lows marked 29 Chart 2 TAS PRO Swing VAP on 5 minute S amp P futures before a new swing is detected 29 Chart 3 TAS PRO Swing VAP on 5 minute S amp P futures after a new swing is detected 30 Chart 4 TAS PRO VAP Map illuminates three volume at price distribution areas and two holes 32 Chart 5 TAS PRO VAP Map on the daily IBOV Index with five user configured distributions 34 Chart 6 TAS PRO Swing VAP on the daily US 10 year T note futures 35 Chart 7 TAS PRO Swing VAP on the daily Light Sweet
116. t from long to countertrend short and short to countertrend long Slow moving average of the histogram that displays a relative measure of the overall levels of buying and selling blue Momentum Histogram Color Legend The histogram is comprised of vertical bars plotted above and below a horizontal zero line that are color coded to provide the following information GREEN RED DARK GREEN DARK RED MAGENTA Confirmed uptrend Higher highs in the histogram indicate that the current directional move to the upside is continuing to gain momentum Confirmed downtrend Lower lows in the histogram indicate that the current directional move to the downside is continuing to gain momentum Upside momentum is slowing Potential countertrend short area Downside momentum is slowing Potential countertrend long area High probability peak uptrend or peak downtrend condition following uptrends or downtrends respectively 52 Navigator Applications e When the Navigator histogram is green or red along or short trend respectively is in place e When the Momentum Histogram switches color from green to dark green or red to dark red trend momentum is slowing and countertrend trade opportunities may be indicated e Magenta bars indicate trend exhaustion peaking trend conditions and potentially indicate the end of a trend This is a relatively high probability event however traders may want to time their exits using other T
117. tep up Trading Concept e Trading Concept In a strong up trending market Floaters lines will each step up shift to higher price values when a new indication is triggered by the algorithm This means that each Floater will move to a higher value than the previous one e Long Entry a If the market is in a very strong uptrend consider a long entry when the security trades pulls back into the Price Pivot Projection line from above e Long Entry b Ina step up condition on an average strength day consider a long entry when the security pulls back to Support 1 from above which the first major support demand area Gold GC Daily Candle Chart TAS PRO Floaters 1 8 E ccl Comi H Resistance 1 Mi Resistance 2 Gi Resistance 3 Wi Support 1 Hi Support 2 Wi Support 3 1 Pivot Price Projection Wi Current Swing s Open H Prior Swing s Close II TAS PRO Pivot Chart 25 TAS PRO Floaters with Step up Concept see red arrows on daily chart of gold futures 62 Floaters Step down Trading Concept e Trading Concept In a strong down trending market Floaters lines will each step down shift to lower price values when a new indication is triggered by the algorithm This means that each Floater will move to a lower value than the previous one e Short Entry a If the market is in a very strong downtrend consider a short entry when the security rallies into the Price Pivot Projection line from below e Short Entry b In a
118. that is developing horizontally over time contrasted with a vertical market that is characterized by a series of relatively equal level price pivot highs and price pivot lows imbalanced profile An imbalanced profile refers to an area of a map such as TAS PRO VAP Map where price moves rapidly and vertically through price levels leaving an absence of horizontal market development inverted V pivot A technical market formation where a rapid move to the upside is immediately followed by an equal or near equal retracement to the upside leaving a chart formation resembling and upside down letter V Also see V pivot Market Profile Designed to help technicians understand the internal structure of the markets Market Profile is the statistically based graphical organization of price time and volume information into visibly informative distributions Market Profile is a registered trademark of the CME 105 p formation A balanced price consolidation area that forms after a Step 1 vertical move to the upside In a profile map it resembles the letter P pivot A pivot is a simple technical formation that depicts a turning point in the supply demand or demand supply equation A pivot low is formed when one or more higher lows and higher highs are on both sides of a bar A pivot high is formed when one or lower highs and lower lows are on both sides of a bar POC Acronym for point of control see point of control point of
119. tion of unseen trend lines which may serve as short term support or resistance e Provides relative measuring points to assist determining the potential intraday trend e Provides insight in measuring minor tradable trends that are not easily recognizable via traditional drawing of normal trend lines e Levels are determined using daily data or a defined time range within a 24 hour period e Ideally suited for use on intraday charts with 5 and 30 minute charts being the best time frame candidates P2310 Nasdaq Mini NQ1 30 min Candle Chart TAS PRO VolAdj Price ena P2300 i j Aeh ae P2290 i wn oe Nea favor longs Sy Touch or break of bottom Favor shorts Break above top line p favor shorts 12 00 20 00 04 00 08 00 12 00 20 00 04 00 08 00 21 Jan 2011 23 Jan 2011 24 Jan 2011 24 Jan 2011 25 Jan 2011 Chart 39 TAS PRO VolAdj Price on 30 minute NASDAQ e mini chart VolAdj Price Configurable Inputs Volatility Range Volatility Range Look Back and Normalizing Length are typically set to Look Back the same value e g 40 40 Default 40 Normalizing Normalizing Length and Volatility Range Look Back are typically set to Length the same value e g 50 50 Default 40 79 VolAdj Price Display Settings Range Window Upper boundary of dynamic volatility range over the span defined by Box High Range Period input blue Adjusted Price Proprietary measure of vol
120. tions for your business needs TAS PRO Consultants share their views of the market trends and emerging ideas These insights are an excellent way to gain a fuller understanding of how the TAS PRO products can work for you TAS PRO advisors are dedicated to providing your team with ongoing feedback to shape performance and promote your business To contact TAS Professional type TASP lt GO gt then click the Contact Us link on our website TAS Professional search Events Incisive Accurate TAS PRO Trading Tools Market Intelligence i Real time Live Training amp Support TAS PRO Market Intelligence assists your trading team in achieving superior risk adjusted returns by providing actionable investme ategies through our unique forward looking research provided both in video based and printed formats Backed by Actionable Research amp Ideas Indicators ili Research fe Training a Consulting Designed by industry professionals applying the highest standards for quantitative analysis TAS Professional is proud to offer our TAS PRO Indicator Suite exclusively to Bloomberg terminal subscribers read more By combining classic technical and quantitative analysis techniques with the TAS Pro Indicator Suite we seek to identify areas of outperformance relative to the current stage of the business cycle read more Recognized by professional traders worldwide TAS Professional Tra
121. tors can pave the way to helping traders seeing what is already there in the price volume relationship in a clearly presented graphical format We use Dynamic VAP to identify trends and reversions by keying off of how price responds to both unfair highs and unfair lows of each profile the upper and lower boundaries When a new unfair high low appears above a series of down trending unfair highs lows movement in tandem with Navigator rising from below zero to above zero that situation constitutes a high probability opportunity for a new trend in the opposite up direction Market Observations refer to the following chart a Navigator provided an earlier clue on January 8 by retracing from below the zero line to above it b Two bars later anew Dynamic VAP profile appears on January 8th with both unfair high and unfair lows at higher levels than in the previous profile c Price finds higher support at higher unfair low levels that previously was an unfair high as we can see from the first pullback in price after Navigator had turned green 30 Day Chart W BPA Curncy Last Price 157 82 3 28 W Unfair High 58 254 E Poc 157 718 W Unfair Low 157 718 155 00 10 ak 10 Jan 2011 Chart 44 TAS PRO Dynamic VAP and TAS PRO Navigator illustrating trading setup refer to Trading Plan next page 91 Trading Plan refer to Chart 44 on the preceding page Since this is only the first sign of market strength the
122. tually exclusive then when the market is in one phase we know what s next the other phase We like to say that balance leads to imbalance and then back to balance again And it s simplest sense markets move slowly through time or fast through price levels We say that markets are either slow or markets are fast To simplify this concept by way of illustration think of the two phases of market activity as being composed of two building blocks 25 e Building block 1 a slow horizontal component e Building block 2 a fast vertical component at a There are some basic guidelines for assembling and then observing these two components 1 Fast follows slow This is an either or state The market will either go higher in price following a horizontal move or it will go lower in price following a horizontal move 2 Slow follows fast After a vertical move a market consolidates 3 When slow becomes relatively slower we are typically approaching the transition point to fast 4 When fast becomes faster and more volatile we are typically approaching the next slow phase in the market 5 There is one notable but less frequently occurring exception to guidelines 1 and 2 and that is when a market goes from fast to fast in the opposite direction skipping horizontal development These formations are known as V pivots or inverted V pivots NOTE Can a market actually skip the horizontal development phase Yes it can but it
123. upport 2 Displays second support line light blue Support 3 Displays third support line light green Pivot Price Projection Displays a price pivot projection cyan Today s Open Displays today s open aqua Yesterday s Close Displays yesterday s close aqua TAS PRO Pivot Displays a modified pivot point calculation aqua e Statics display up to 10 user selectable horizontal lines of trading information e The first areas of support and resistance are plotted as red lines on either side Pivot Price Projection line e Light blue lines above and below the red lines are the next projected resistance and support areas respectively e Light green lines above and below the light blue lines are the next projected resistance and support areas respectively Statics Applications e Note We collectively refer to Pivot Price Projection Today s Open Yesterday s Close and TAS PRO Pivot the four center cyan aqua lines as Center Lines e When price is trading inside Center Lines a market is said to be balanced 55 e When price is trading below Center Lines market bias is anticipated be to the downside e When price is trading above Center Lines market bias is anticipated be to the upside e Use Statics as a guide to multiple intraday support and resistance levels for both entries and targets e Red Statics are projected rotational highs and lows When price is trading outside red Statics markets are considered to be
124. ve analysis TAS Professional is proud to offer our TAS PRO Indicator Suite exclusively to Bloomberg terminal subscribers read more gt By combining classic technical and quantitative analysis techniques with the TAS Pro Indicator Suite we seek to identify areas of outperformance relative to the current stage of the business cycle read more gt Ee Training Recognized by professional traders worldwide TAS Professional Trader Education fast tracks you and your trading team to the highest levels of proficiency and expertise in deploying the TAS PRO Indicator Suite read more gt Home Services Events Sales Trial About Contact us TAS Professional LLC 2011 Privacy Policy a Consulting Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met Lorem ipsum dolor met read more 99 Trader Consulting TAS PRO Consultants are some of the most talented professionals in the field of quantitative analytics TAS PRO Consulting focuses on providing unique risk management techniques capital preservation and outperforming strategies that can be integrated into your trading and investment performance goals TAS PRO advisors will work with your investment team including portfolio managers analysts and traders to help you design innovative trading solu
125. ye A methodical learning process will be a valuable investment of your time The following section overviews a suggested process for becoming familiar with and adapting the TAS PRO Indicator Suite into your application regimen For all terms in blue italic text please see Appendix C Glossary of Terms for definitions 16 Suggested Process for Studying and Learning the TAS PRO Indicator Suite We strongly recommend the following process for becoming familiar with the indicators We repeat Under no circumstances should you be in a hurry to make decisions with these new tools Be smart and be judicious Earning follows learning not the other way around Read this manual in its entirety Take your time with the learning process The markets will be there tomorrow While using the TAS PRO Indicator Suite take notes and keep a journal of the new distinctions you are making Add to your notes and integrate your new knowledge into your existing methods and procedures Write out questions relating to the concepts that you do not understand and bring those to our live TAS PRO Persistent Chat room where our room moderators will gladly walk you through the answers step by step Periodically visit TAS Professional s web page for our schedule of live and pre recorded educational webinars To access the schedule run TASP lt GO gt Do not try to learn all of the indicators at once We suggest that you start with the TAS PRO Stat

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