Here i want to discuss Failed Auction concept.
I use Market Profile in my Trading, i keep on exploring new concepts of MP.
Got to know it first on Ray Barros Blog about Failed auction,
Quoting him,
'Whats Failed Auction = Its a single print at one end of the profile occurring after the Initial Balance that is followed by a Range Extension at the opposite end."
and then"Market Profile Theory suggests we ought to see a Failed Auctions price within 5-trading days.
Then i checked it on Index Future charts , clearly there were many FA revisits in past so i tried to find more material on Failed Auction, didn't get any.
so i decided to test it on Nifty Future ( NSE India Index future), tested for over 1 years data..results were good.nearly 74% of Failed Auctions got revisited :)
Honestly i dont know why revisit in only 5days , but i tested it anyway.Im not into programing at all, so this testing was done manually :crazy_pilot:.
Im new to Elite circle, so thought of sharing this with other Profile Traders .
Had nice trades with FA recently.Attached my Failed Auction charts.