ZEUS Market Dynamics (Market Profile with Signals and Alerts)

Mar 23, 2021

J. Peter Steidlmayer developed the concept of "Market Profile". Instead of conventional technical analysis that tries to predict "Directionality", the market profile actually aimed to understand where market participants find "Value" and does a great job at this. Value is essentially a variable best described by price and time for the market is ultimately an auction process and solely exists to facilitate two sided trade. Understanding market participants perception of fair value is the best way to predict the "Directionality" that we as discretionary traders are so eager to look for. There are numerous books on this subject which discuss how to trade the "Market Profile". The only drawback that the method had in older times was that the profile was plotted using Time Price Opportunities or TPOs. These were alphabetical letters plotted in sequence about price and time that yielded difficult to interpret bell-curves.

Skipping to 2021, we at Zeus Trading and Financial Advisory have revamped this archaic method into a powerful and user friendly trading tool which features

1) Intra-Session Developing Market Profile Values such as Developing Value Area and Developing POC alongside previous session Value Area and POC.
2) A proprietary smoothening and signal generation algorithm which gives crisp and concise BUY/SELL cues.
2) Flexible interface that allows the user to analyze/trade daily market profiles as well as longer term weekly and monthly profiles.
3) Adjustable Auto Resolutions that makes the indicator flexible across all asset classes/indices/crypto/forex/ commodities /ETFs/equity.
4) Auto Session Profile Setting that seamlessly switches between various chart timeframes mapped to various profile session periods.
5) Dynamic Alerts on signals that highlight ticker, signal type ( Bullish / Bearish ), chart timeframe, level rejected, session duration (daily, weekly, monthly) and wick to body ratio of signal generated.
6) No Repaint. Wait for close of candle to confirm signal. Alerts are generated only on the close of the candle.


Additional Features

1) Ability to show/hide day's range, developing value area and previous value area.
2) Ability to show/hide smoothed/unsmoothed values of developing profiles.
3) Adjustable smoothening period. We however would recommend leaving it at its default value.
4) Ability to switch off Auto Session Profile for experienced traders who may want to trade longer term weekly/monthly profiles on smaller timeframes or vice-versa.
5) Ability to choose between kind of signals the trader wishes to see and get alerts on [Bullish/ Bearish /Both]
6) Adjustable wick to body ratio threshold the trader wishes to look for based on the volatility of asset class. Higher values will trade-off better signals for fewer signals.


Notes and Important Information -

1) For users trading forex etc. which have very small tick sizes, please switch off auto profile and manually enter resolution corresponding to tick size.
2) Signals provided are not a strategy but are BUY/SELL cues. They do not indicate SL/targets. Please use relevant consolidation high/low for SL and successive values as targets.
3) The cues are provided to give the trader a trading plan. Having a plan keeps a trader disciplined and prevents him/her from overtrading. As we all know, trading is 90% psychology.
4) If possible, always confirm signals with Divergence Indicator (Built-in TradingView) and Open Interest data.
5) The profile is calculated volumetrically. This means that the indicator will not work on indices.
To trade indices, trade the future of the index. {ticker(suffix)1!}. For example to trade NIFTY use ticker "NIFTY1!"


Recommended Books to Read on Market Profile to understand the concept on a deeper level -
1) Secrets of a Pivot Boss by Franklin O. Ochoa (Chapters 1, 3 and 4)
2) Mind over Markets by James Dalton.

Session Mapping Protocol - (Applicable If auto session profile is switched "on")

Candle Timeframe vs Profile Session Duration
(1 min, 3 min, 5 min) - 1 day
(15 min, 30 min, 45 min) - 1 week
(1 h, 2 h, 3 h, 4 h 1 D) - 1 month
(1 week, 1 month) - N/A


Disclaimer - Trading environments are highly dynamic and past results may not guarantee future performance. Quoting Franklin O. Ochoa, author of "Secrets of a Pivot Boss", "There is nothing about the market profile that works or does not work for it is actually an effective conduit to listen to market participants perception of fair value". There exits a significant risk associated with all trading activity. Please understand and acknowledge the risk before initiating such activities.

Apr 7, 2021

Release Notes

The new version calculates Market Profile levels using price instead of volume. I did observe significant improvement in signal quality. You can now view signals and levels on indices instead of depending on their futures as was done in the previous iteration.

Apr 27, 2021

Release Notes

I have now added the capability of getting an Auto Stop-Loss for signals that fire. The SL will show in the chart as well as display in the alert message for a seamless experience when you cannot look at charts all the time. The "Auto Profile" default setting is now "Off". Those who want to intraday trade can use any timeframe of their choice (preferably between 5 min and 1H) for signals and set alerts for the same. You can use any permutation of candle timeframe and profile timeframe when "Auto Profile" is switched off. Switching it on will make it map as was mentioned during the first release. You can always view higher or lower timeframe profiles by changing the setting.

Apr 27, 2021

Release Notes

Improved UI

May 5, 2021

Release Notes

-> Improved Signal Generation Algorithm (SGA)
-> Improved UI
-> Brighter Plots
-> Internal code re-structuring

May 5, 2021

Release Notes

Bug Fix in Inputs Section

Aug 25, 2021

Release Notes

Bug Fixes. Improved Auto SL UI. Default setting for Auto-SL set to off.