Here are examples of how to analyze markets using Market Profile / Auction Market concepts. It is important to note that you can analyze markets without a profile graph, but the profile graph is worthless unless it is viewed through the worldview of Auction Market concepts.
Please click on the images to enlarge them.
Wheat
From the long-term perspective Wheat is trading in the HVN (High Volume Node) of the 2007-2010 auction. Unless Wheat can close above the 2014 HVN high that presently resides near 5.76 the trend on the Long-term remains down.
A close above 5.44 on the weekly chart is a signal of a potential change in trend. Traders can use the 5.44 KRA area to look for short trade set-ups utilizing 2-3 day structure and/or intraday trade structure.
The daily perspective corroborates the relative importance of the 5.40-5.52 KRA (Key Reference Area). Also note that Wheat has traded to the upper extreme at the next important downside KRA at 5.10-4.98.
Gold
VALUE in Gold is in a downtrend. From the perspective of the long-term chart below Gold would have to close above about 1334 as an initial signal of a long-term change in trend.
Below is the intermediate term view of gold that show clearly the importance of the 1263-1334 HVN.
As we drill down a bit the 1204-1229 HVN is revealed as an important HVN. A close above 1229 is an early initial signal of a potential change in trend.
The short term view of gold shows that it is trading in an HVN. The trend is down in all time frames, so being consistent with a good general “rule” of always favoring trades in the direction of the larger degree migration of VALUE, one might consider short trade set-ups against the 1164 area.
