TAS Boxes: The height and width of the TAS Boxes Video:
We are into the series on TAS Market Profile Training Videos, and in this one we will dive into the height and width of the boxes. When we are trying to understand the key differences between the boxes, these are key factors. The shape of each TAS Boxes is determined by the trading activity at specific price points. This information is gathered, and formed in to what makes up TAS Boxes. In TAS Market Profile Training video below, you will learn how to identify the key TAS Boxes levels.
Height of the Box:
The height is a measure of volatility in the trading area prior. When the market is moving quickly in one, or both, directions, the TAS Boxes increase in height. This is to identify areas where the market is often easily able to range within. We must keep in mind that 70% of the trading in the area prior happened within the area outlined by the boxes. This means that within this area, the market is considered to be “fair value”, and will more easily range between it.
Width of the Box:
The width of each box indicates the level of price consolidation. When we have a market ranging within one TAS Box, this is an accumulation of buyers and sellers in this area. We want to, at this point, watch for a break of the High/Low value areas. When we get a break above, or below of the TAS Boxes on a wide box, we know the market has broken out of balance.
TAS Market Profile Training: Identify Each Outlier TAS Box
How wide of a TAS Box is too wide, or how to identify too tall of a box? This is dependent on each market that you trade. You have already spent time trading different markets. Each is unique with the speed that it moves, and the trends that form. This is true on long and short based time frames. With TAS Boxes, we are looking at the Market Profile information on each chart. This means that as you increase/decrease your time frame, the Boxes will widen/narrow. On longer time frames, the market will often consolidate within ranges, while on shorter timevframes these consolidation movements will have large moves within them.