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Tuesday, Oct 21st

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Last Updated (Wednesday, 07 March 2012 14:34) Written by Carl Weiss Friday, 02 December 2011 20:19

 

Institute of Auction Market Theory

Learn to trade the markets! 

Discover for yourself how valuable being able to understand how an auction market works and and how understanding what the volume and price data it generates is telling you about it's probable direction.

Time and sales data shows every trade made by buyers and sellers giving a true picture of whose controlling the market and at what prices they are asserting their influence.

The Institute of Auction Market Theory is an education-based service, which strives to teach discretionary trading. Bill Duryea founded IOAMT with the goal of teaching traders how to read data, identify important information and act on that knowledge. Bill is a professional Analyst of the S&P 500 Futures for over 10 years and has conducted seminars nationwide teaching CBOT Market Profile®, Buy/Sell volume analysis and Auction Market Theory. 

IOAMT has developed analytical tools to assist in interpreting market-generated data, some of the best decision support tools in the industry.Through the interaction in our daily live training room we have created a mastermind group of traders and the knowledge attained through this group is invaluable.

Our live training room starts 30 minutes before the market opens with a review of the key support and resistance levels and the re-cap of the previous activities as well as an overview of the general market condition, which provides the context for the day’s session.

Signup for the 5 day FREE Trial here


Our Daily Member Services Include

During your 5 day free trial, everyday you will receive:

  1. The night before: Daily statistical support and resistance levels which provide the framework for the trading day.
  2. Before the market open: Discussion of the statistical possibilities along with an update of overnight trade activity and an economic news impact.
  3. Bell-to-Bell commentary: Live interpretation of the market generated data describing where buyers and sellers are active in the market.Time and sales trade opportunity alerts determining the 2 dominate phases of the market, consolidation and trend. We use clear objective criteria to accurately interpret when the market breaks out of consolidation and begins trending and when the trend has come to an end and begins to consolidate.
  4. Follow along in simulation: Use our state of the art proprietary charts with a built in trade simulator for free for 30 days to develop a personal experience in discretionary trading. Practice trading as we use quantifiable techniques to objectively determine the influence of buyer’s vs. sellers at our key statistical support and resistance levels.
  5. Market Analysis after the bell: View our after market recap as we review the day and go over the days trade alerts.

Here’s what we do

IOAMT maintains for its members a historical database of market generated data consisting of the daily time and sales activity for the most popular indices, such as the S&P, Dow, Nasdaq and Russell e-mini contracts. From this database IOAMT generates its proprietary statistical calculations from which its daily trading levels are derived. The IOAMT Daily Levels provide Key reference points, such as the average daily range above and below the previous day close, the extreme ranges and the statistical divisions which include seven support and resistance levels.

The IOAMT daily levels; an invaluable tool for scientifically defined support & resistance. Here is a sample from Jan 31 2007:

 


The Daily levels are provided as part of the IOAMT member services. The Daily levels are used in conjunction with the IOAMT pre-market Analysis. The pre-market analysis is published every night and provides a framework upon which traders can prepare themselves for possible outcomes of the following day’s session.

 

The IOAMT Market analysis is based on the concept of Fair Market Value.

Fair market value is mathematically defined as one standard deviation above and below the day’s mean. This portions of the day’s range contains 68% of the volume traded during the session and is called the value area.

Below is an excerpt of our pre-market analysis and how this analysis was applied to develop a trading strategy and determine optimum entry and exit points in accordance with the real time & sales data which constitutes the order flow as it enters the market in the S&P futures contract.

****PREMARKET ANALYSIS EXCERPT****

A pre-market exercise in Market Logic, Deductive Reasoning and Visualizing the Future

Today’s Outlook:

Friday‘s settlement: close at 1416.25 was below value and 2.50 points below the mean. The range for the session was 10.00 points, .75 points below average. The volume for the session was 921326, Above Average. The time & sale data shows the difference between the buy and sell orders [+-Cum BID/ASK Differential] was -4012. Coming into the next day’s session we use the IOAMT Daily Levels [example posted above] to identify thekey reference points.

Regarding the possible scenarios coming into the next day’s session, the over-night / pre-market action is always the first factor to be taken into account.

There are always only three probabilities that confront the trader at the start of a new session. These are:1.) The market can auction within the previous day’s trading range.2.) Price can breakdown below the previous day’s support.3.) Price can breakout above the previous day’s resistance.

*****END******

It should be noted that the IOAMT analysis is provided the night before the market opens. The material in the analysis report is reviewed in the IOAMT live educational trading room right before the open and the IOAMT senior educator moderates live in real time the live streaming data as the order flow enters the market at the start of the new trading session. To view a sample of the analysis in its entirety click here

Monitoring the Time & Sales data using the IOAMT volume at price charts provide the trader the means to quantify the changes in the order flow, providing the information necessary to determine trading strategies, which take advantage of the Supply and Demand forces that drive the market.Examples of how this information is applied are provided below and are available real time in the IOAMT live educational trading room.

In addition to the live trading room, IOAMT generates a series of daily reports, which are issued after the first hour of trading to assist its member’s track the market action and the volume placement during the session.


 

There are two main proprietary charting applications that IOAMT has developed to plot the Time & Sales data. Both types of charts plot volume at price. Volume at price charts do not use standard bars or candles sticks as most charting applications do. Instead the charts employ a grid method, similar to a spreadsheet.

The IOAMT Volume at Price chart plots the trading activity that occurred during session. Plotting Volume at Price is the best way to monitor the order flow as it enters the market. As you can see on the Volume at Price below, price is plotted vertically, from top to bottom on the left side of the grid.

In order to provide an overview of the entire day’s session the streaming time & sales data is displayed in 30-minute segments. Volume is plotted next to price in columns.

Here is an example of the 30-minute volume at price chart for Jan 31 2007:

 

Next to the price column you’ll see the letter O marking the open of the session. The 30 minute segments are plotted in columns titled A through N. The black triangle at the right of each 30-minute segment marks the close of the bar. At the far right of the chart is the total cumulative volume that traded at each price and a histogram for easy reference. At the bottom of each column are the total number of buys and sells that occur during each 30-minute segment. The sell orders are titled BID Volume and the buy orders are titled ASK Volume. Below the BID/ASK Volume is the [+ -] difference between the totals number of buys and sells and the percentage of the total. The next row calculates the total difference between buyers and sellers as it changes through out the day and the BID/ASK differential percentage of the total volume. In each column there may appear a blue box around the volume at a particular price. This highlighted volume indicates statistically high volume at that individual price level. This statistical high volume can be either buying or selling and is considered the point at which a directional move is initiated. Determining whether it is buy or sell volume requires looking at the short-term bid/ask chart.

The other Volume at price is intended to provide a detail view of the price action. On that chart the data is broken down in short segments, which are calculated by specified price reversals. The BID/ASK reversal chart for Jan 31 2007 snapshot is below, and can be seen in its entirety byclicking here

The IOAMT live training room and the Time & Sales Data Alerts are intended for the educational advancement of its members. Alerts are posted in the training room live during the daily session, to bring to members attention specific market conditions.

Specific market conditions might be a re-test of a recent high where the Time & Sale Data indicates sellers are still active. Alternatively, a re-test of a recent low where buying interest clearly indicates probability favors long position over short. The Time & Sales Data clearly shows who has the advantage, buyers or sellers

The market conditions are subject to change. Test of previous high and low can often be met with failure. Resistance at the high can be penetrated and support of the low can be breached. IOAMT Time & Sales Alerts point out to its members when the market-generated data indicates when changes in the condition that produces resistance at the high and/or support of the low have occurred. . When such changes in Buying Interest and Selling Pressure occur probability favors price breaking outs above resistance and below support.

Here are a few Examples of IOAMT Time & Sales Alerts:

Response to the Probe to Resistance at the recent intraday high [1431]

The probe to resistance [1431] that occurred at [7:30 PST] met with a sell response. The Time & Sales data indicates that from the High the market is net short [- 5000].

IF; during a subsequent test of the High, the negative bias holds, an opportunity to go short at/or near [1431] exists

IF; during a subsequent test of resistance at [1431] the current negative differential turns positive, the probability favors a breakout aboveresistance. In the event of price penetrating resistance, cover short positions.

Penetration of resistance on increasing volume, accompanied by an increasing positive bias sets up an opportunity to go long in the direction of the breakout.


Response to the Probe to Support at the recent intraday low [1431]

The probe to Support [1431] which occurred at [7:30 PST] met with a buy response. The Time & Sales data indicates that from the Low market is net long [+ 5000].

IF; during a subsequent test of the Low, the positive bias holds, an opportunity to go long at/or near [1431] exists

IF; during a subsequent test of support at [1431] the current positive differential turns negative, the probability favors a breakout below support. In the event price breaches support, cover long positions.

Breach of support on increasing volume, accompanied by an increasing negative bias sets up an opportunity to go short in the direction of the breakout.

 

Let’s see how the Time & Sales Alerts correlates to actual trading activity:

 

Here’s what our members think about our live educational training room

“My thanks to Bill for his wisdom, insight, honesty and clarity of purpose. I understand the material like never before and now intuitively, sense and know things about the market that I have never really understood until now.” RK 

“The depth of understanding I’ve received in how to trade the market is unparalleled.” BT 

“William Duryea’s use of new innovative graphics to illustrate the price/volume activity in the intraday timeframe substantially enhances the clarity and timeliness’ of the materials. This product offers the student the ability to receive live, real-time, tick-tick depictions of the market behavior.” RH 

“Bill’s a fantastic teacher and I really admire what he’s doing. I look forward to learning more as time goes on.” MM 

NOTE: The results stated below may not be typical of the results achieved by the average student. There has been no compensation for the testimonials.

There is no better information than that produced by the market itself. Watch us apply the scientific method to the markets every day.

 

Signup for the 5 day FREE Trial here