TAS Boxes Plywood formation Video:
The TAS Market Profile trading strategy that we are covering in this video is the Plywood Formation. This Is when we use the TAS Boxes Indicator, and it’s support and resistance lines to find a high probability trade. In combination with the TAS Market Profile Boxes, we wait for a specific trade setup. This increases our trade outcome by waiting for additional signals before we look to enter a trade.
The additional trading signal that we are waiting for is a Plywood formation. This is when we have the Point Of control line near either the high value area or low value area lines. When you see this happen, you can identify an area of greater resistance and support in the market, derived from Market Profile information.
TAS Market Profile Trading Strategy Setup:
We’ve gone over how to use the TAS Boxes indicator in videos already, if you are not familiar with it, please visit the page here:
TAS Market Profile Videos
We wait for multiple TAS Boxes levels to be near each other. This is because the High value or Low value areas both represent areas of support and resistance. In combination with these, we have the Point of control line. Together they can combine to form an area that represents increased support and resistance in the market.
For Resistance Or Support in the market:
This TAS market profile trading strategy can be used as both an indicator of support or resistance in the market. If the market is below a level of R&S, it will act as resistance. If the market is above a level of R&S in the market, it will act as support.
Additional tips for this TAS Market Profile Trading Strategy:
The Blue POC line will, at times, be directly over the Low value area or high value area in the TAS Boxes. This can cause a bit of confusion since it will be overlapped by the red or green lines. We can fix this by editing the size of the TAS Market Profile point of control line as seen in the video here:
If you want to find out more about how TAS can improve your own trades, check out their Boxes Videos here: (it will open in a new tab)
Bruce Banks