{"id":214,"date":"2024-03-09T17:53:03","date_gmt":"2024-03-09T17:53:03","guid":{"rendered":"https:\/\/siegearchives.siegeinvestments.com\/?p=214"},"modified":"2024-03-13T22:02:45","modified_gmt":"2024-03-13T22:02:45","slug":"higher-time-frame-hierarchy","status":"publish","type":"post","link":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/2024\/03\/09\/higher-time-frame-hierarchy\/","title":{"rendered":"Higher Time Frame Hierarchy"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"214\" class=\"elementor elementor-214\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-9f3c1c8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9f3c1c8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ae846c\" data-id=\"6ae846c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-937b362 elementor-widget elementor-widget-text-editor\" data-id=\"937b362\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 09-10-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Let\u2019s take a minute to discuss Auction Market Theory and our approach utilizing a Top &#8211; Down \u2013 Bottom &#8211; Up systematic process . We discuss this often, but do we really understand what it entails? The Market is made up of fractals. Let\u2019s think of this as symmetry . Forever evolving. Forever expanding. We sometimes refer to these fractals as Matryoshka Dolls \u2013 an analogy utilized to describe the very nature of a fractal. Matryoshka Dolls are a representation of a family lineage beginning with the mother carrying her child who then goes on to have a child of her own &#8211; a nd so on and so on down the family line. The biggest doll all the way to the smallest doll. The se fractals have the same hierarchical structure in the financial markets which we chose to observe or engage ourselves in. This emerges in the form of what we call Volume Profile. The behavior we observe from the auction participants tell the rest of the story depending on what fractal they decide to operate in.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3e474d0 elementor-widget elementor-widget-heading\" data-id=\"3e474d0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 09-10-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">What are these fractals?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e9836be elementor-widget elementor-widget-heading\" data-id=\"e9836be\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Starting with our Biggest fractal we have our Composite Volume Profile .<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-48a8072 elementor-widget elementor-widget-text-editor\" data-id=\"48a8072\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\tThis encompasses the last 10, 20, or 30 years plus of volume data giving us the biggest picture of where the auction has taken us. By observing the volume profile \u2019s structure, we can visualize the areas where the market spen t a lot of time and found acceptance or spent a little amount of time and decided to seek out fair value elsewhere. We observe these areas \u2013 just like on all other fractals \u2013 as High &#8211; Volume Nodes (HVN\u2019s) and Low &#8211; Volume Nodes (LVN\u2019s) . The two together , create what we call a profile distribution , sometimes referenced as consolidation \u2019s . These are just fancy words to say the price likes to hang out around unspecified areas f or an unspecified amount of time until it decides to move to another unspecified area to see if it \u2019 s more habitable in attempt to seek out what is known as \u201c fair value\u201d.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-81a83d4 elementor-widget elementor-widget-image\" data-id=\"81a83d4\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.16.0 - 09-10-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"315\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19-1024x403.png\" class=\"attachment-large size-large wp-image-220\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19-1024x403.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19-300x118.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19-768x302.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19-1536x605.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-19.png 1948w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d42dd5a elementor-widget elementor-widget-text-editor\" data-id=\"d42dd5a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>You can see in the above picture how the volume distributions take on these bell curve &#8211; like shapes with most of the volume in the middle and the least amount of volume on the edges of the distribution. Sometimes these can be very clean and other times very rough \u2013 or \u201ctoothy\u201d \u2013 is how they are often referred to as . Regardless of shape \u2013 the story these distributions tell us is where price has been most accepted (HVN) and where price has been least accepted (LVN) .<\/p>\n<p>The market goes up to go down \u2013 and goes down to go up. During this endless search to seek fair value, it does so by interacting with the low and high &#8211; volume areas. The high &#8211; volume areas act as sort of a magnet \u2013 so to say , and it does this due to a larger amount of acceptance at one point in time \u2013 hence the higher volume. The low volume areas are generally observed as pivot al areas where the auction will check it \u2013 and then decide to seek the higher volume node above it or below it.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ac30a8b elementor-widget elementor-widget-heading\" data-id=\"ac30a8b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Moving to the next fractal down we have our Micro - Composite Volume Profile .<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40bb1c9 elementor-widget elementor-widget-text-editor\" data-id=\"40bb1c9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>At the Micro &#8211; Composite level , we are going to observe the same behavior of these \u201cchecks and balances\u201d in the market in the form of these low and high &#8211; volume nodes. Since we are zooming in to the market, we are going to need a new lens. We can compare this to our analogy above using the Matryoshka Dolls . The smaller they get, the more focus we need to observe the detail. Maybe this one we just need to squint some \u2013 but as we get to the smaller dolls (fractals) we might need to use a magnifying glass to appreciate the detail \u2013 otherwise, we \u2019re just look ing at noise and can\u2019t appreciate the smaller detail .<\/p>\n<p>The Micro &#8211; Composite Volume Profile takes our Composite view and isolates the RTH days that have consolidated. In other words, there is overlap of the candles and this tells us that the auction has some sort of temporary acceptance in this general area. Let\u2019s explore.<\/p>\n<p>This is 1 Micro &#8211; Composite Volume profile that we have isolated to reduce the noise<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4a95ea5 elementor-widget elementor-widget-image\" data-id=\"4a95ea5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"327\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20-1024x419.png\" class=\"attachment-large size-large wp-image-221\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20-1024x419.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20-300x123.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20-768x314.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20-1536x629.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/unnamed-20.png 1950w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7415d9b elementor-widget elementor-widget-text-editor\" data-id=\"7415d9b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Lets go ahead and apply multiple Micro &#8211; Composite Volume Profiles and add some noise.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-304f735 elementor-widget elementor-widget-image\" data-id=\"304f735\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"322\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18-1024x412.png\" class=\"attachment-large size-large wp-image-229\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18-1024x412.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18-300x121.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18-768x309.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18-1536x617.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-18.png 1948w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad269d8 elementor-widget elementor-widget-text-editor\" data-id=\"ad269d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>We can all probably agree there is a lot going on. Tha t is fine since our focus is to look within these Micro Composite Profiles .<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5bcd345 elementor-widget elementor-widget-text-editor\" data-id=\"5bcd345\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Lets take a look at what we are actually interested in.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13e1a0c elementor-widget elementor-widget-image\" data-id=\"13e1a0c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"322\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17-1024x412.png\" class=\"attachment-large size-large wp-image-230\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17-1024x412.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17-300x121.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17-768x309.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17-1536x617.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-17.png 1948w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33538b1 elementor-widget elementor-widget-text-editor\" data-id=\"33538b1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The same behavior is observed here that we saw in the bigger Composite fractal that we explored earlier. A series of auction mechanics testing low volume area\u2019s and gravitating to higher volume areas. Similarly, we can see distributions forming creating that bell curve like profile \u2013 whilst other areas have the \u201ctoothy\u201d profile.<\/p>\n<p>What does this all mean? Anticipation .<\/p>\n<p>As we approach these areas of high and low volume in the Micro Composite Volume Profile we can anticipate a reaction . This behavior is anticipated because it is aligned with the mechanics of an auction. Hence, Auction Market Theory. We must anticipate to participate as long as it is in line with our system that has vetted metrics behind it. Otherwise, we can observe and narrate the behavior.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75d5c3e elementor-widget elementor-widget-heading\" data-id=\"75d5c3e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Moving to the next size fractal down we can look at the Previous D ay RTH .<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62eaaba elementor-widget elementor-widget-text-editor\" data-id=\"62eaaba\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This is often referred to as \u201c p \u201d to indicate previous . p HI , p LO , p VPOC , etc.<\/p>\n<p>We can see the same components of the volume profile as examined in the two prior fractals<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13b82a0 elementor-widget elementor-widget-image\" data-id=\"13b82a0\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"323\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19-1024x413.png\" class=\"attachment-large size-large wp-image-228\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19-1024x413.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19-300x121.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19-768x310.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19-1536x619.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-19.png 1950w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad749e7 elementor-widget elementor-widget-text-editor\" data-id=\"ad749e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As we continue to look at smaller fractals. We continue to observe the same market behavior . These are our dolls. These are our fractals<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c28f19f elementor-widget elementor-widget-heading\" data-id=\"c28f19f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Moving to the next size fractal down we can look at the Developing RTH Fractal .<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d95fa9f elementor-widget elementor-widget-text-editor\" data-id=\"d95fa9f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This fractal is unique to most \u201cday traders\u201d as this is where we watch the current day auction unfold. Again , the behaviors we observe are the same as we create certain volume distributions every day with areas of high volume and areas of low volume .<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8fa68a8 elementor-widget elementor-widget-image\" data-id=\"8fa68a8\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" width=\"800\" height=\"321\" src=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21-1024x411.png\" class=\"attachment-large size-large wp-image-231\" alt=\"\" srcset=\"https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21-1024x411.png 1024w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21-300x120.png 300w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21-768x308.png 768w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21-1536x617.png 1536w, https:\/\/siegearchives.siegeinvestments.com\/wp-content\/uploads\/2024\/03\/image-21.png 1948w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-626e016 elementor-widget elementor-widget-text-editor\" data-id=\"626e016\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Let\u2019s bring this all together. As we have gone from our larger fractals down to our smaller fractal s we observe the same behavior \u2013 but looking at it through a different lens each time. The financial markets are active worldwide and we have participants engaging with many different approaches.<\/p>\n<p>We have larger participants with more influence that only operate on a composite level \u2013 they don\u2019t worry about the day to day, or potentially even the week to week. Since they operate on a higher time frame this typically comes with more weight on their positions . Their behavior is anticipated around these larger consolidations where we observe composite high and low volume nodes.<\/p>\n<p>There are other participants who operate within the monthly fractal \u2013 or even the Micro &#8211; Composite Fractals . They\u2019re highly influential in the market but using the same analogy above regarding weight \u2013 they operate with less weight than the long term \u2013 composite participants.<\/p>\n<p>Let\u2019s zoom into the RTH . Less weight \u2013 but same behaviors. This is usually retail traders . If we look at this from a retail lens and who we are up against and trading against it is imperative to understand that we are up against the bigger fish so to speak. People who can influence the market and make it very responsive .<\/p>\n<p>But we do have ways to navigate these waters. Stay with me.<\/p>\n<p>In the developing RTH picture above we can observe the day making a initial LOD at a mcHVN which is the bottom blue line. Price reacts there and goes on to make a higher high. We come back down and test that mcHVN again and the \u201c Matryoshka Doll \u201d opens up to allow us test a smaller fractal which was the Previous RTH HVN . Th e market said, \u201ctoo low\u201d and thi s was indeed our LOD.<\/p>\n<p>As we come up and start creating new highs, we have areas of interest above us as targets. A pVPOC and a mcVPOC above it. It is important to understand we should respect each fractal target as we never know if the market will take us to the next pit stop. pVPOC is a smaller fractal\/doll then the mcVPOC . The mcVPOC carries more weight. You can see that we pushed through the pVPOC and picked the mcVPOC and as anticipated \u2013 we rejected that area and had a counter rotation.<\/p>\n<p>This is where its important to pay attention . Since the developing RTH rejected the mcVPOC initially th e market heads back up to test the waters . Since mcVPOC was \u201ctoo high\u201d. Our next logical area and fractal size down would be to test the pVPOC . You can see it does this and we also get an anticipated reaction.<\/p>\n<p>We eventually are able to break through both of those levels to explore higher in the auction. But it is important to understand that these behaviors are checks and balances in the market that are participant driven on all times frames and fractals. We must be mindful of the \u201cweight\u201d these fractals carry with them. If we are long a position and we have a pVPOC 20 points away but there is a mcVPOC 10 points away. This is an obstacle with HEAVIER weight<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Let\u2019s take a minute to discuss Auction Market Theory and our approach utilizing a Top &#8211; Down \u2013 Bottom &#8211; Up systematic process . We discuss this often, but do we really understand what it entails? The Market is made up of fractals. Let\u2019s think of this as symmetry . Forever evolving. Forever expanding. We [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":58,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/posts\/214"}],"collection":[{"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/comments?post=214"}],"version-history":[{"count":10,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/posts\/214\/revisions"}],"predecessor-version":[{"id":234,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/posts\/214\/revisions\/234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/media\/58"}],"wp:attachment":[{"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/media?parent=214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/categories?post=214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/siegearchives.siegeinvestments.com\/index.php\/wp-json\/wp\/v2\/tags?post=214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}