With the TAS Market Map alligator jaws formation, we are using the volume gaps in the market to find trades that will run. The high volume areas form when trading stagnates at a price point therefore acts as resistance and support (R&S). Between the two areas of resistance and support, there is a volume gap in the market, highlighted by Market Map.
How does Market Map display Market Profile Information?
Market Map creates a color coded version of Market Profile information. This gives you a clearer view of exactly where the trades were made therefore you identify key areas on your chart. Market Profile provides you with the exact price points where volume accumulates. This is more useful to us, as traders, than standard volume, because we use this to determine areas where they market may stagnate. With this strategy using Market Map’s Market Profile, we have two areas of market stagnation and the volume gap between them.
This video breaks down exactly hot to find Market Map alligator jaws formations:
What are we looking for with a TAS Market Map alligator jaws formation?
We are looking for trade setups involving two high value areas where the market has consolidated. The separation between these is important because there will be a volume gap in between them. We use TAS Market Map to identify areas of support and resistance, and look for a run in the market between these two areas.
When do High value areas form?
High value areas form when the market stagnates at a specific price point. Within a single Market Map, there can be a single high value area or multiple high value areas. It depends on how many trades accumulate at different price levels, and if there are gaps between each of these price levels.
What is the best setup for TAS Market Map alligator jaws formation?
We want two distinct high value areas with as large as possible of a gap between them because this gives us the most room for a trade. With the two high value areas formed, next we look for a market that is able to break below/above one of the value areas. Breaking through this area of resistance and support is key because it begins to act as resistance/support at this point. One side of the market is pushed against resistance and support, and the other side of the market has a volume gap. The combination of these two can cause the market to gap again giving a great trade opportunity.