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Congestion Measurement for Exits*

Donald L. Jones
Copyright CISCO Futures October 17, 2004


Throughout both CISCO's Short and the Long Courses our students are repeatedly reminded to enter on breakouts and exit on congestion. They have little problem with breakouts. Crossing a price barrier from balance to trend is easy to recognize. If the breakout is accompanied by directional price movement, a trend has begun. The breakout is an event that anyone can recognize.

Students (and traders!) have much more difficulty with congestion. Congestions are a matter of degree, ranging from a slight market consolidation to a longer term interruption of the directional movement. Also, a trend generally ends with a whimper, not a bang. End of trend begins with some congestion that reflects trader's doubts about whether value will continue to change. As more doubts accrue, the end game becomes more clouded. Finally, directional movement ceases and all price movement turns into fluctuation about a central price. Balance has returned.

The overall picture of day-to-day market evolution is a movement from balance to testing (is a trend starting?), to trend, to testing (is consolidation beginning to dominate?) and back to balance. Within a trend the directional movement is combined with pauses as the market takes time to digest the new value levels. There is no set rule for the number of pauses or their dimensions (price range and time in pause mode). Many trends end at the first pause, others have many run - pause phases before the trend is over. (For a long run - pause sequence look at the soybean 80+ day run in the text (pg 21 - 22)).
Value Based Power Trading Text

In the material below an understanding of the basic Market Profile/Meta-Profile and Overlay Demand Curve is assumed. Explanatory information on these two data types is available on the CISCO website.
Market Profiles
Overlay Demand Curve Intro

Congestion and the Swing Trader
Congestions are an integral part of trends. A normal trend will run and then pause. It may run again and pause again. This procedure is followed until the last pause takes the market into a congestion (balance) phase. Oftimes the pauses grow in continued importance until they dominate the market phase, as is the case for the T-bonds example below. There a swing trader would have seen four balance days followed by a breakout on Oct 11 shortly after 11 AM. The next trading day, Oct 15, had three pauses, Oct 16 had one as did Oct 17, with two on Oct 18, one on Oct 21, one on Oct 22 and finally back to balance on Oct 23. All in all the swing trader had plenty of time to figure out where congestion is beginning to dominate the trend.

Congestion and the Day Trader
Day traders do not have the luxury of the unlimited time that swing traders often do. They must evaluate the congestion picture within minutes of entry. Two ways to measure short timeframe congestion are shown in the SP emini example below. One way is a simple TPO count. If a market moves and comes back, the price where there are several TPOs lined up indicates that many traders accepted that price over a fairly long time (it is a mini-balance area). Another, more dynamic way is to calculate a continuous sum of market acceptance for each price (TPO). Volume traded would be the preferred measure, but we use tick count, which is available in real time, as a surrogate.

Practical Problems
The pause/congestion can take many forms. A trade typically starts from a balance. The balance phase of the market can equally be described as a fundamental congestion. Characteristics of this phase are restricted trading range, low volatility and low volume. A balance is defined by an Overlay Demand Curve that forms a quasi-bell shaped price - volume distribution with the close inside the distribution.
Overlay Demand Curve Intro
The balanced distribution is characterized by an upper and lower limit (resistance and support). As value changes, price exceeds the limit (breakout), signaling the start of a trend. The price - volume distribution changes from a bell shape to distributing curve, i.e., and upward or downward moving price line. At some point the movement halts and price chops around, fluctuating around a price center called a pause. Such a pause is a congestion. The pause may be short lived with a narrow trading range or longer (several days) with a wider range. If value is still changing the trend will emerge from the pause and continue it's directional movement.

The task for the trader is to differentiate between a pause that is just marking time until the trend reemerges and one that is signalling the end of the trend. Although different in scale, the job is the same for the daytrader and the longer term swing trader. In both cases the trader requires market understanding.

Auction Market Analysis has tools for congestion recognition for both longer and shorter timeframe trading. Both cases use price and time. Time for longer timeframe, swing trading can be several days. For daytrading the time is of the order of a half-hour to an hour or two. Rarely does the market turn on a dime, so the trader must have patience to avoid exiting too early.


Case 1. Day Trading Congestion: SP emini Feb 27, 2003
Congestion measurement in a daytrade is based on the time it takes information to flow into the market. Work on volatility indicates the minimum market response time is about one-half hour.
Volatility

In the daytrader timeframe, congestion is typically a very short term phenomena. It is usually found within in just a few half hour periods. When a run or trend is distributing it spends little time at each price it moves through. As it slows, it spends more and more time at each price. In the upside breakout in the example, price moved up rapidly the first hour and then retreated. Rule of thumb: in daytrading, four TPOs alerts to congestion. Another method is to sum volume or a volume surrogate like ticks to find congestion. We use both TPO count and ticks here.

In the example discussed, we start with the Value Area of the Market Profile/Meta-Profile from the previous day to locate today's breakout point.

Breakout occurred within the opening half-hour period and the market made the day's high in the next half-hour period.

Both TPOs and ticks associated with each TPO are posted in figure C1. Entrance on the upside breakout at 83525 in D period was followed by a strong run-up to peak out at 84275 in E period. At this point the trader is naturally bullish, only hindsight shows this to be the top. As price relaxed back, four TPOs, DEFG appeared at 84000. This is an alert to potential congestion and the trader should be seriously considering an exit.

A second piece of evidence is in the tick sums ('Sum Ticks' column). At 83975 (on the way back down) the tick count jumps and stays high all the way on down to 83775. This is also clearly a congestion alert. Since the tick jump comes on the heels of the four TPOs one tick above, one's decision to exit is reinforced.

CISCO CMaPS Meta-Profile methodology is designed to aid the trader in examining congestion. CMaPS has two controls that help locate congestion. CMaPS is first a profile generator from real-time ticks (a Tick-TPO or Meta-Profile). It offers two primary time frames, the normal 30 minutes and a double-density 15 minute profile. It is the 15 minute time that you will switch to when you examine for congestion. Also, with CMaPS you can set your timeframe, e.g. in figure 1, you might first think you detect a hint of congestion at 83975 in F period (10:30 to 11 AM). CMaPS lets you select a timeframe, say from 9:45 to 10:45 and use a 15 minute profile to enlarge the area you want to examine.


CMaPS.



LENGTH OF FIRST PERIOD =           30 MINS

                    META-PROFILE REPORT FOR 02 27 03
                          AND SEGMENTED AUCTION

COMMODITY  --  Mini S&P 500 (CME-IOM)MAR 03


Partial Day:  from Breakout in D period to Congestion in G period

   Price  Brackets               Segmented Auction    Sum Ticks  
                             TK     TK     TK    TK      
  84275 E                            4 E                  4
  84250 E                            7 E                  7
  84225 E                           19 E                 19
  84200 E                           64 E                 64
  84175 E                           81 E                 81
  84150 E                           57 E                 57
  84125 E                           60 E                 60
  84100 E                           56 E                 56
  84075 DEH                  30 D   41 E                 71
  84050 DEH                  34 D   58 E                 92
  84000 DEFGHJ               18 D   69 E   10 F  33 G    61
  83975 DEFGHJ               33 D  107 E   30 F  51 G   114 <== Congest region U
  83950 DEFGHIJ              76 D   67 E   54 F  31 G   151
  83925 DEFGHIJ              87 D   41 E   69 F  22 G   219
  83900 DEFGHIJ              74 D   36 E   69 F  25 G   204
  83875 DEFGHIJK             89 D   15 E   64 F  27 G   195
  83850 DFGHIJKP             91 D          47 F  23 G   161
  83825 DFGHIJKP            102 D          56 F  15 G   173
  83800 DFGHIJKP            117 D          52 F  33 G   202
  83775 DFGIJKNP             52 D          29 F  30 G   111 <== Congest region L
  83750 DFGIJKNP              5 D          12 F  20 G    37
  83725 DGIJKNP               7 D                41 G    48
  83700 DGIJKNP               3 D                59 G    62
  83675 DGIJKNP              10 D                48 G    58
  83650 DGJKNP               16 D                20 G    36
  83625 DGJKN                21 D                 2 G    23
  83600 DKN                  36 D                        36
  83575 DKN                  49 D                        49
  83550 DKLN                 52 D                        52
  83525 DKLN  Breakout Up    63 D                        63
U 83500 DKLN                106 D                       106
  83475 DKLMN               105 D                       105
  83450 DKLMN                54 D                        54
  83425 DKLMN                36 D                        36

Figure C1.  Two hours 0930 - 11:30), SP emini Feb 27, 2003


Entire Day's Trading

   Price  Brackets               Segmented Auction    
  84275 E                          E    |  |  |  |                
  84250 E                          E    |  |  |  |                
  84225 E                          E    |  |  |  |                
  84200 E                          E    |  |  |  |                
  84175 E                          E    |  |  |  |                
  84150 E                          E    |  |  |  |                
  84125 E                          E    |  |  |  |                
  84100 E                          E    |  |  |  |                
  84075 DEH                     D  E    |  |H |  |  |  |  |  |  | 
  84050 DEH                     D  E    |  |H |  |  |  |  |  |  | 
  84025 DEGH                    D  E    |G |H |  |  |  |  |  |  | 
  84000 DEFGHJ                  D  E  F |G |H |  |J |  |  |  |  | 
  83975 DEFGHJ                  D  E  F |G |H |  |J |  |  |  |  | 
  83950 DEFGHIJ                 D  E  F |G |H |I |J |  |  |  |  | 
  83925 DEFGHIJ                 D  E  F |G |H |I |J |  |  |  |  | 
  83900 DEFGHIJ                 D  E  F |G |H |I |J |  |  |  |  | 
  83875 DEFGHIJK                D  E  F >G >H >I >J >K >  >  >  | 
  83850 DFGHIJKP                D     F |G |H |I |J |K |  |  |  |P
  83825 DFGHIJKP                D    |F |G |H |I |J |K |  |  |  |P
  83800 DFGHIJKP                D    |F |G |H |I |J |K |  |  |  |P
  83775 DFGIJKNP                D    |F |G |  |I |J |K |  |  |N |P
  83750 DFGIJKNP                D    |F |G |  |I |J |K |  |  |N >P
  83725 DGIJKNP                 D |  |  |G |  |I |J |K |  |  |N |P
  83700 DGIJKNP                 D |  |  |G |  |I |J |K |  |  |N |P
  83675 DGIJKNP                 D |  |  |G |  |I |J |K |  |  |N |P
  83650 DGJKNP                  D |  |  |G |  |  |J |K |  |  |N |P
  83625 DGJKN                   D |  |  |G |  |  |J |K |  |  |N | 
  83600 DKN                     D |  |  |  |  |  |  |K |  |  |N | 
  83575 DKN                     D |  |  |  |  |  |  |K |  |  |N | 
  83550 DKLN                    D |  |  |  |  |  |  |K |L |  |N | 
  83525 DKLN                   |D |  |  |  |  |  |  |K |L |  |N | 
U 83500 DKLN                   |D |  |  |  |  |  |  |K |L |  |N | 
  83475 DKLMN                  |D |  |  |  |  |  |  |K |L |M |N | 
  83450 DKLMN                  |D |  |  |  |  |  |  |K |L |M |N | 
  83425 DKLMN                  |D |  |  |  |  |  |  |K |L |M |N | 
  83400 CDKLMN               C |D |  |  |  |  |  |  |K |L |M |N | 
  83375 BCDLM             B  C >D >  >  |  |  |  |  |  |L |M |  | 
  83350 BCDLM             B  C |D |  |  |  |  |  |  |  |L |M |  | 
  83325 BCDLM             B  C |D |  |  |  |  |     |  |L |M |  | 
  83300 BCDLM            |B |C |D |  |  |  |           |L |M |    
  83275 BCLM             |B |C |  |  |  |  |            L |M      
  83250 BCLM             |B |C |  |  |  |               L  M      
  83225 BCLM             |B |C |  |  |  |               L  M      
  83200 BCLM             |B |C |  |  |                  L  M      
  83175 BCLM             |B |C |  |  |                  L  M      
  83150 BCLM             |B |C |  |  |                  L  M      
  83125 BCLM             >B |C |  |  |                  L  M      
  83100 BCL              |B |C |  |  |                  L         
  83075 BCL              |B |C |  |  |                  L         
  83050 BCL              |B |C |  |  |                  L         
  83025 BC               |B >C |  |  |                            
  83000 BC               |B |C |  |  |                            
  82975 BC               |B |C |  |  |                            
  82950 BC               |B |C |  |  |                            
  82925 BC                B |C |  |  |                            
  82900 BC                B |C |  |  |                            
  82875 BC                B |C |  |  |                            
  82850 BC                B |C |  |  |                            
  82825 C                    C |  |  |                            
  82800 C                    C |  |  |                            
  82775 C                    C |  |  |                            
  82750 C                    C |  |  |                            
L 82725 C                    C    |  |                            
  82700 C                    C    |  |                            
  82675 C                    C    |  |                            
  82650 C                    C    |  |                            

Figure C2.  Entire day, SP emini Feb 27, 2003


The example concentrated on the initial breakout and followed the trade into congestion. The entry trigger point was yesterday's upper Value Area. Price above the value area suggested value was rising. Tracking the market through G period indicates the change in value was not permanent. Day traders may use signals other than Value Area for breakouts. Assume another entry method was used to go short in J period. Again, the four TPO rule would have suggested congestion at 83400, after price bottomed out in L period. There were four TPOs at 83425, 83450 and 83475. The four prices all traded within a few minutes of the 83050 low in L period near the end of the day. Thus, there were at least two trading opportunities for the day trader, both of which could have used the four TPO measure for congestion (and probably tick sums as well).


Swing Trading Congestion: T-bonds Oct 7 - Oct 23, 2002
T-bonds show good communication between trader and market. Part of the reason is that the yield curve is well understood and regular U.S. Treasury auctions reinforce market knowledge. T-bonds are a good test-bed for congestion studies (and trading).

The bonds were in balance Oct 7 through Oct 10. Trading range of the balance averaged about 65 points (1 point = $31.25). The maximun number of TPOs is about 22. The actual data are in table C3.

The balanced market data will be useful in determining when a congestion has gone beyond the pause stage. The pause is transitory. It will have a range small compared to the balanced state. Trading range of a pause will be substantially less than the 65 point average for the balance. Also, the maximum TPO width of a pause will be quite a lot less than the 22 TPOs width of a balance.



5 Day Overlays: Balanced Phase

           ULIM    LLIM    Range (32nds)    Max TPO (POC)
10/07/02  11410 - 11220      52                29
10/08/02  11429 - 11220      70                19
10/09/02  11429 - 11222      68                18
10/10/02  11429 - 11222      68                23

Table C3.  Balance phase Oct 7 - Oct 10.


Figure C1 is the five day Overlay for Oct 10. It is in balance as seen by the single bell shaped distribution, with the close inside the distribution. Balance limits, Max TPO and Close are as marked.

 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 04 02 TO 10 10 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11504  1         S               1 X
 11503  1         S               1 X
 11502  1         S               1 X
 11501  1         S               1 X
 11500  1         S               1 X
 11431  1         S               2 XX
 11430  1         S               2 XX
 11429  1         S               3 XXX <== Upper Balance Limit
 11428  1         S               3 XXX
 11427  1         S               3 XXX
 11426  2         ST              4 XXXX
 11425  2         ST              5 XXXXX
 11424  2         ST              5 XXXXX
 11423  2         ST              6 XXXXXX
 11422  2         ST             10 XXXXXXXXXX
 11421  2         ST             14 XXXXXXXXXXXXXX
 11420  2         ST             16 XXXXXXXXXXXXXXXX
 11419  2         ST             19 XXXXXXXXXXXXXXXXXXX
 11418  3    U    STU            19 XXXXXXXXXXXXXXXXXXX
 11417  3    U    STU            16 XXXXXXXXXXXXXXXX
 11416  3    U    STU            17 XXXXXXXXXXXXXXXXX
 11415  3    U    STU            18 XXXXXXXXXXXXXXXXXX
 11414  4    U    RSTU           21 XXXXXXXXXXXXXXXXXXXXX
 11413  4    U    RSTU           20 XXXXXXXXXXXXXXXXXXXX
 11412  4    U    RSTU           16 XXXXXXXXXXXXXXXX
 11411  4    U    RSTU           13 XXXXXXXXXXXXX
 11410  4    U    RSTU           14 XXXXXXXXXXXXXX
 11409  4    U    RSTU           16 XXXXXXXXXXXXXXXX
 11408  5   QU    QRSTU          17 XXXXXXXXXXXXXXXXX
 11407  5   QU    QRSTU          16 XXXXXXXXXXXXXXXX
 11406  5   QU    QRSTU          16 XXXXXXXXXXXXXXXX
 11405  4   QU    QRSU           15 XXXXXXXXXXXXXXX
 11404  4   QU    QRSU           15 XXXXXXXXXXXXXXX
 11403  4   QU    QRSU           13 XXXXXXXXXXXXX
 11402  4   QU    QRSU           15 XXXXXXXXXXXXXXX
 11401  4   QU    QRSU           16 XXXXXXXXXXXXXXXX
 11400  4   QU    QRSU           18 XXXXXXXXXXXXXXXXXX
 11331  4   QU    QRSU           21 XXXXXXXXXXXXXXXXXXXXX
 11330  4   QU    QRSU           22 XXXXXXXXXXXXXXXXXXXXXX
 11329  4   QU    QRSU           23 XXXXXXXXXXXXXXXXXXXXXXX <== Max TPO
 11328  4   QU    QRSU           23 XXXXXXXXXXXXXXXXXXXXXXX
 11327  4   QU    QRSU           22 XXXXXXXXXXXXXXXXXXXXXX
 11326  4   QU    QRSU           22 XXXXXXXXXXXXXXXXXXXXXX
 11325  4   QU    QRSU           19 XXXXXXXXXXXXXXXXXXX
 11324  4   QU    QRSU           18 XXXXXXXXXXXXXXXXXX <== Close
 11323  4   QU    QRSU           16 XXXXXXXXXXXXXXXX
 11322  4   QU    QRSU           13 XXXXXXXXXXXXX
 11321  3   QU    QSU            11 XXXXXXXXXXX
 11320  3   QU    QSU             9 XXXXXXXXX
 11319  2   QU    QU              7 XXXXXXX
 11318  2   QU    QU              6 XXXXXX
 11317  2   QU    QU              5 XXXXX
 11316  2   QU    QU              4 XXXX
 11315  2   QU    QU              5 XXXXX
 11314  2   QU    QU              4 XXXX
 11313  1   Q     Q               3 XXX
 11312  1   Q     Q               3 XXX
 11311  1   Q     Q               4 XXXX
 11310  1   Q     Q               4 XXXX
 11309  1   Q     Q               3 XXX
 11308  1   Q     Q               3 XXX
 11307  1   Q     Q               4 XXXX
 11306  1   Q     Q               6 XXXXXX
 11305  1   Q     Q               6 XXXXXX
 11304  1   Q     Q               6 XXXXXX
 11303  1   Q     Q               7 XXXXXXX
 11302  1   Q     Q               7 XXXXXXX
 11301  1   Q     Q               7 XXXXXXX
 11300  1   Q     Q               7 XXXXXXX
 11231  1   Q     Q               6 XXXXXX
 11230  1   Q     Q               6 XXXXXX
 11229  1   Q     Q               5 XXXXX
 11228  1   Q     Q               4 XXXX
 11227  1   Q     Q               4 XXXX
 11226  1   Q     Q               4 XXXX
 11225  1   Q     Q               4 XXXX
 11224  1   Q     Q               5 XXXXX
 11223  1   Q     Q               4 XXXX
 11222  1   Q     Q               3 XXX <== Lower Balance Limit
 11221  1   Q     Q               2 XX
 11220  1   Q     Q               2 XX
 11219  1   Q     Q               2 XX
 11218  1   Q     Q               2 XX
 11217  1   Q     Q               2 XX
 11216  1   Q     Q               2 XX
 11215  1   Q     Q               2 XX
 11214  1   Q     Q               2 XX
 11213  1   Q     Q               2 XX
 11212  1   Q     Q               1 X
 11211  1   Q     Q               1 X
 11210  1   Q     Q               1 X
 11209  1   Q     Q               1 X
 11208  1   Q     Q               1 X
 
 Figure C3.  Five day Overlay 
 This last balance day before the breakout on Oct 11 indicates a market 
 without apparent directional bias. The ROT PROFILE column identifies the
 dates: Q is Oct 4, R is Oct 7, S is Oct 8, T is Oct 9 and U is Oct 10.
 The low, 11208 in day Q, occurred on the 5th day back. The high, 11504
 in day S is three days back.  The latest day, U traded through the 
 middle of the distribution.  Limits are set at a the furthest three
 TPO prices (11429 - 11222).  Trading outside the limits is considered
 a breakout, an alert that a trend may be starting.



A downside breakout occurred on Oct 11 at 11221. There were two pauses in the downard thrust that day, both just two TPOs wide. The close at 11210 gave the breakout trader a profit of eleven points ($343).



TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 07 02 TO 10 11 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11504  1         S               1 X
 11503  1         S               1 X
 11502  1         S               1 X
 11501  1         S               1 X
 11500  1         S               1 X
 11431  1         S               2 XX
 11430  1         S               2 XX
 11429  1         S               3 XXX
 11428  1         S               3 XXX
 11427  1         S               3 XXX
 11426  2         ST              4 XXXX
 11425  2         ST              5 XXXXX
 11424  2         ST              5 XXXXX
 11423  2         ST              6 XXXXXX
 11422  2         ST             10 XXXXXXXXXX
 11421  2         ST             14 XXXXXXXXXXXXXX
 11420  2         ST             16 XXXXXXXXXXXXXXXX
 11419  2         ST             19 XXXXXXXXXXXXXXXXXXX
 11418  3         STU            19 XXXXXXXXXXXXXXXXXXX
 11417  3         STU            16 XXXXXXXXXXXXXXXX
 11416  3         STU            17 XXXXXXXXXXXXXXXXX
 11415  3         STU            18 XXXXXXXXXXXXXXXXXX
 11414  4   R     RSTU           21 XXXXXXXXXXXXXXXXXXXXX
 11413  4   R     RSTU           20 XXXXXXXXXXXXXXXXXXXX
 11412  4   R     RSTU           16 XXXXXXXXXXXXXXXX
 11411  4   R     RSTU           13 XXXXXXXXXXXXX
 11410  4   R     RSTU           14 XXXXXXXXXXXXXX
 11409  4   R     RSTU           16 XXXXXXXXXXXXXXXX
 11408  4   R     RSTU           16 XXXXXXXXXXXXXXXX
 11407  4   R     RSTU           15 XXXXXXXXXXXXXXX
 11406  4   R     RSTU           15 XXXXXXXXXXXXXXX
 11405  3   R     RSU            14 XXXXXXXXXXXXXX
 11404  3   R     RSU            14 XXXXXXXXXXXXXX
 11403  3   R     RSU            11 XXXXXXXXXXX
 11402  3   R     RSU            12 XXXXXXXXXXXX
 11401  3   R     RSU            13 XXXXXXXXXXXXX
 11400  3   R     RSU            15 XXXXXXXXXXXXXXX
 11331  3   R     RSU            18 XXXXXXXXXXXXXXXXXX
 11330  3   R     RSU            19 XXXXXXXXXXXXXXXXXXX
 11329  3   R     RSU            20 XXXXXXXXXXXXXXXXXXXX
 11328  3   R     RSU            19 XXXXXXXXXXXXXXXXXXX
 11327  3   R     RSU            19 XXXXXXXXXXXXXXXXXXX
 11326  3   R     RSU            19 XXXXXXXXXXXXXXXXXXX
 11325  3   R     RSU            16 XXXXXXXXXXXXXXXX
 11324  3   R     RSU            15 XXXXXXXXXXXXXXX
 11323  3   R     RSU            13 XXXXXXXXXXXXX
 11322  3   R     RSU            10 XXXXXXXXXX
 11321  2         SU              8 XXXXXXXX
 11320  3    V    SUV             7 XXXXXXX
 11319  2    V    UV              6 XXXXXX
 11318  2    V    UV              6 XXXXXX
 11317  2    V    UV              5 XXXXX
 11316  2    V    UV              5 XXXXX
 11315  2    V    UV              5 XXXXX
 11314  2    V    UV              4 XXXX
 11313  1    V    V               3 XXX
 11312  1    V    V               3 XXX
 11311  1    V    V               3 XXX
 11310  1    V    V               5 XXXXX
 11309  1    V    V               4 XXXX
 11308  1    V    V               4 XXXX
 11307  1    V    V               2 XX
 11306  1    V    V               2 XX
 11305  1    V    V               3 XXX
 11304  1    V    V               3 XXX
 11303  1    V    V               4 XXXX
 11302  1    V    V               4 XXXX
 11301  1    V    V               4 XXXX
 11300  1    V    V               5 XXXXX
 11231  1    V    V               5 XXXXX
 11230  1    V    V               3 XXX
 11229  1    V    V               3 XXX
 11228  1    V    V               3 XXX
 11227  1    V    V               2 XX
 11226  1    V    V               2 XX
 11225  1    V    V               2 XX
 11224  1    V    V               2 XX
 11223  1    V    V               1 X
 11222  1    V    V               1 X
 11221  1    V    V               1 X  <== BREAKOUT DOWN
 11220  1    V    V               1 X
 11219  1    V    V               1 X
 11218  1    V    V               2 XX
 11217  1    V    V               2 XX
 11216  1    V    V               2 XX
 11215  1    V    V               2 XX
 11214  1    V    V               2 XX
 11213  1    V    V               1 X
 11212  1    V    V               1 X
 11211  1    V    V               2 XX
 11210  1    V    V               2 XX  <== CLOSE 
 11209  1    V    V               2 XX
 11208  1    V    V               2 XX
 11207  1    V    V               2 XX
 11206  1    V    V               1 X
 11205  1    V    V               1 X
 11204  1    V    V               1 X
 11203  1    V    V               1 X
 
 Figure C4.  Breakout day, Oct 11.  After the breakout at 12221 and run 
 down to 11203 with a close at 11210, it is fair to assume that the
 balanced distribution of Oct 10 has given way to a downward trend.
 Accordingly, the old balanced distribution is now history and no longer
 used in the trader's analyses.  


Now the focus is on congestion, i.e. the trend seeker has become a congestion seeker. Experience with the balances of Oct 7 - 10 with their average range of 64 ticks and average width of 22 TPOs will now be used to judge when a defining congestion has occurred. Table C2 is a summary of the next few days of trading.

We seek to find the first pause that is an appreciable fraction of the balance situation. A rule of thumb can be about half of the balance, or a range of 32 ticks or more and/or a width of 11 TPOs or more.

The first decision comes on Oct 15, where the initial pause is 7 TPOs and 15 ticks. While bigger than the two pauses of Oct 11, these are still small compared to the 32 ticks/11 TPOs of our rule of thumb.

On Oct 16, that day's pause is 20 ticks and 9 TPOs. Still smaller than our gauge of 32/11 but getting closer. We could guess that the market is moving into congestion by the growth of both ticks and TPOs.

Oct 17 finds a pause with 19 ticks and 13 TPOs. The 19 ticks is less than our test of 32, but the 13 TPOs is greater than our test. The growth toward congestion seems to be steady. A careful trader would probably decide to exit. This end-of-day information comes after the close, but it is possible to close the trade in the after hours market. Assuming one exits at the close, the trade grossed 124 points.

The number of points one makes or loses on a trade is less important than having a strategy for exiting on congestion. Experience plays a role. Judgment is involved. But the principles are clear. Markets move from trend to congestion. Just how one interprets the data will differ from trader to trader.
Trading Model Development

A postmortem on Table C2 might show that the exit, in this case was too early. More could have been made by staying longer. A less risk averse trader might use 3/4 of the average, 48 ticks/16 TPOs, which could keep one in longer. We argue that if a trader sets a strategy and lives up to it, not exiting at the optimum point is not a failure at all. Any strategy will almost always exit too early or too late. The test is whether the strategy is net successful.

Overlays for Oct 15 - 22 are posted below Table C2. Use these data to verify Table C2.


Trend Phase
                             Close   Pause Range    Pause TPO (POC)  Rng 32nds
10/11/02   Breakout 11221    11210   11218 - 11214         2             2
                                     11211 - 11207         2             2

10/15/02                     11005   11104 - 11022         7            15
                                     11020 - 11014         4             7
                                     11008 - 11004         2             2

10/16/02                     10925   11008 - 10921         9            20

10/17/02                     10825   10903 - 10817        13            19

10/18/02                     10822   10903 - 10809        18 (10824)    27
                                     10805 - 10800         4

10/21/02                     10802   10905 - 10726        20 (10820)    44

10/22/02                     10723   10905 - 10720        20 (10820)    50

Back to Balance Phase
           ULIM    LLIM    Range (32nds)    Max TPO (POC)
10/23/02  10905   10718        52                23

Table C2.  A summary of market behavior after the breakout day Oct 11.
Pauses for each day are posted with their price ranges and maximum TPO count.
 

 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 08 02 TO 10 15 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
-------------- Old Distribution Prior to Breakout ----------
 11320  3   S     SUV             7 XXXXXXX
 11319  2         UV              6 XXXXXX
 11318  2         UV              6 XXXXXX
 11317  2         UV              5 XXXXX
 11316  2         UV              5 XXXXX
 11315  2         UV              5 XXXXX
 11314  2         UV              4 XXXX
 11313  1         V               3 XXX
 11312  1         V               3 XXX
 11311  1         V               3 XXX
 11310  1         V               5 XXXXX
 11309  1         V               4 XXXX
 11308  1         V               4 XXXX
 11307  1         V               2 XX
 11306  1         V               2 XX
 11305  1         V               3 XXX
 11304  1         V               3 XXX
 11303  1         V               4 XXXX
 11302  1         V               4 XXXX
 11301  1         V               4 XXXX
 11300  1         V               5 XXXXX
 11231  1         V               5 XXXXX
 11230  1         V               3 XXX
 11229  1         V               3 XXX
 11228  1         V               3 XXX
 11227  1         V               2 XX
 11226  1         V               2 XX
 11225  1         V               2 XX
 11224  1         V               2 XX
 11223  1         V               1 X
 11222  1         V               1 X
 11221  1         V               1 X  <== Yesterday breakout (10/11)
 11220  1         V               1 X
 11219  1         V               1 X
 11218  1         V               2 XX
 11217  1         V               2 XX
 11216  1         V               2 XX
 11215  1         V               2 XX
 11214  1         V               2 XX
 11213  1         V               1 X
 11212  1         V               1 X
 11211  1         V               2 XX
 11210  1         V               2 XX
 11209  1         V               2 XX
 11208  1         V               2 XX
 11207  1         V               2 XX
 11206  1         V               1 X
 11205  1         V               1 X
 11204  1         V               1 X
 11203  1         V               1 X
 11108  1    W    W               1 X
 11107  1    W    W               1 X
 11106  1    W    W               1 X
 11105  1    W    W               1 X
 11104  1    W    W               3 XXX
 11103  1    W    W               3 XXX
 11102  1    W    W               4 XXXX
 11101  1    W    W               5 XXXXX
 11100  1    W    W               4 XXXX
 11031  1    W    W               4 XXXX
 11030  1    W    W               6 XXXXXX
 11029  1    W    W               6 XXXXXX
 11028  1    W    W               7 XXXXXXX
 11027  1    W    W               7 XXXXXXX
 11026  1    W    W               7 XXXXXXX
 11025  1    W    W               6 XXXXXX
 11024  1    W    W               6 XXXXXX
 11023  1    W    W               5 XXXXX
 11022  1    W    W               3 XXX
 11021  1    W    W               1 X
 11020  1    W    W               4 XXXX
 11019  1    W    W               5 XXXXX
 11018  1    W    W               4 XXXX
 11017  1    W    W               4 XXXX
 11016  1    W    W               4 XXXX
 11015  1    W    W               4 XXXX
 11014  1    W    W               3 XXX
 11013  1    W    W               2 XX
 11012  1    W    W               2 XX
 11011  1    W    W               2 XX
 11010  1    W    W               1 X
 11009  1    W    W               1 X
 11008  1    W    W               2 XX
 11007  1    W    W               2 XX
 11006  1    W    W               2 XX
 11005  1    W    W               2 XX  <== CLOSE
 11004  1    W    W               2 XX
 11003  1    W    W               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 09 02 TO 10 16 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *

-------------- Old Distribution Prior to Breakout ----------
 11320  2         UV              5 XXXXX
 11319  2         UV              6 XXXXXX
 11318  2         UV              6 XXXXXX
 11317  2         UV              5 XXXXX
 11316  2         UV              5 XXXXX
 11315  2         UV              5 XXXXX
 11314  2         UV              4 XXXX
 11313  1         V               3 XXX
 11312  1         V               3 XXX
 11311  1         V               3 XXX
 11310  1         V               5 XXXXX
 11309  1         V               4 XXXX
 11308  1         V               4 XXXX
 11307  1         V               2 XX
 11306  1         V               2 XX
 11305  1         V               3 XXX
 11304  1         V               3 XXX
 11303  1         V               4 XXXX
 11302  1         V               4 XXXX
 11301  1         V               4 XXXX
 11300  1         V               5 XXXXX
 11231  1         V               5 XXXXX
 11230  1         V               3 XXX
 11229  1         V               3 XXX
 11228  1         V               3 XXX
 11227  1         V               2 XX
 11226  1         V               2 XX
 11225  1         V               2 XX
 11224  1         V               2 XX
 11223  1         V               1 X
 11222  1         V               1 X
 11221  1         V               1 X <== Old breakout (10/11)
 11220  1         V               1 X
 11219  1         V               1 X
 11218  1         V               2 XX
 11217  1         V               2 XX
 11216  1         V               2 XX
 11215  1         V               2 XX
 11214  1         V               2 XX
 11213  1         V               1 X
 11212  1         V               1 X
 11211  1         V               2 XX
 11210  1         V               2 XX
 11209  1         V               2 XX
 11208  1         V               2 XX
 11207  1         V               2 XX
 11206  1         V               1 X
 11205  1         V               1 X
 11204  1         V               1 X
 11203  1         V               1 X
 11108  1         W               1 X
 11107  1         W               1 X
 11106  1         W               1 X
 11105  1         W               1 X
 11104  1         W               3 XXX
 11103  1         W               3 XXX
 11102  1         W               4 XXXX
 11101  1         W               5 XXXXX
 11100  1         W               4 XXXX
 11031  1         W               4 XXXX
 11030  1         W               6 XXXXXX
 11029  1         W               6 XXXXXX
 11028  1         W               7 XXXXXXX
 11027  1         W               7 XXXXXXX
 11026  1         W               7 XXXXXXX
 11025  1         W               6 XXXXXX
 11024  1         W               6 XXXXXX
 11023  1         W               5 XXXXX
 11022  1         W               3 XXX
 11021  1         W               1 X
 11020  1         W               4 XXXX
 11019  1         W               5 XXXXX
 11018  1         W               4 XXXX
 11017  1         W               4 XXXX
 11016  1         W               4 XXXX
 11015  1         W               4 XXXX
 11014  1         W               3 XXX
 11013  1         W               2 XX
 11012  2    X    WX              3 XXX
 11011  2    X    WX              3 XXX
 11010  2    X    WX              2 XX
 11009  2    X    WX              2 XX
 11008  2    X    WX              4 XXXX
 11007  2    X    WX              5 XXXXX
 11006  2    X    WX              7 XXXXXXX
 11005  2    X    WX              7 XXXXXXX
 11004  2    X    WX              9 XXXXXXXXX
 11003  2    X    WX              8 XXXXXXXX
 11002  1    X    X               8 XXXXXXXX
 11001  1    X    X               7 XXXXXXX
 11000  1    X    X               5 XXXXX
 10931  1    X    X               7 XXXXXXX
 10930  1    X    X               6 XXXXXX
 10929  1    X    X               7 XXXXXXX
 10928  1    X    X               7 XXXXXXX
 10927  1    X    X               8 XXXXXXXX
 10926  1    X    X               8 XXXXXXXX
 10925  1    X    X               8 XXXXXXXX  <== CLOSE
 10924  1    X    X               8 XXXXXXXX
 10923  1    X    X               8 XXXXXXXX
 10922  1    X    X               5 XXXXX
 10921  1    X    X               3 XXX
 10920  1    X    X               2 XX
 10919  1    X    X               2 XX
 10918  1    X    X               2 XX
 10917  1    X    X               2 XX
 10916  1    X    X               2 XX
 10915  1    X    X               1 X
 10914  1    X    X               1 X
 10913  1    X    X               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 10 02 TO 10 17 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 

-------------- Old Distribution Prior to Breakout ----------
 11320  2   U     UV              5 XXXXX
 11319  2   U     UV              6 XXXXXX
 11318  2   U     UV              6 XXXXXX
 11317  2   U     UV              5 XXXXX
 11316  2   U     UV              5 XXXXX
 11315  2   U     UV              5 XXXXX
 11314  2   U     UV              4 XXXX
 11313  1         V               3 XXX
 11312  1         V               3 XXX
 11311  1         V               3 XXX
 11310  1         V               5 XXXXX
 11309  1         V               4 XXXX
 11308  1         V               4 XXXX
 11307  1         V               2 XX
 11306  1         V               2 XX
 11305  1         V               3 XXX
 11304  1         V               3 XXX
 11303  1         V               4 XXXX
 11302  1         V               4 XXXX
 11301  1         V               4 XXXX
 11300  1         V               5 XXXXX
 11231  1         V               5 XXXXX
 11230  1         V               3 XXX
 11229  1         V               3 XXX
 11228  1         V               3 XXX
 11227  1         V               2 XX
 11226  1         V               2 XX
 11225  1         V               2 XX
 11224  1         V               2 XX
 11223  1         V               1 X
 11222  1         V               1 X
 11221  1         V               1 X <== Old breakout (10/11)
 11220  1         V               1 X
 11219  1         V               1 X
 11218  1         V               2 XX
 11217  1         V               2 XX
 11216  1         V               2 XX
 11215  1         V               2 XX
 11214  1         V               2 XX
 11213  1         V               1 X
 11212  1         V               1 X
 11211  1         V               2 XX
 11210  1         V               2 XX
 11209  1         V               2 XX
 11208  1         V               2 XX
 11207  1         V               2 XX
 11206  1         V               1 X
 11205  1         V               1 X
 11204  1         V               1 X
 11203  1         V               1 X
 11108  1         W               1 X
 11107  1         W               1 X
 11106  1         W               1 X
 11105  1         W               1 X
 11104  1         W               3 XXX
 11103  1         W               3 XXX
 11102  1         W               4 XXXX
 11101  1         W               5 XXXXX
 11100  1         W               4 XXXX
 11031  1         W               4 XXXX
 11030  1         W               6 XXXXXX
 11029  1         W               6 XXXXXX
 11028  1         W               7 XXXXXXX
 11027  1         W               7 XXXXXXX
 11026  1         W               7 XXXXXXX
 11025  1         W               6 XXXXXX
 11024  1         W               6 XXXXXX
 11023  1         W               5 XXXXX
 11022  1         W               3 XXX
 11021  1         W               1 X
 11020  1         W               4 XXXX
 11019  1         W               5 XXXXX
 11018  1         W               4 XXXX
 11017  1         W               4 XXXX
 11016  1         W               4 XXXX
 11015  1         W               4 XXXX
 11014  1         W               3 XXX
 11013  1         W               2 XX
 11012  2         WX              3 XXX
 11011  2         WX              3 XXX
 11010  2         WX              2 XX
 11009  2         WX              2 XX
 11008  2         WX              4 XXXX
 11007  2         WX              5 XXXXX
 11006  2         WX              7 XXXXXXX
 11005  2         WX              7 XXXXXXX
 11004  2         WX              9 XXXXXXXXX
 11003  2         WX              8 XXXXXXXX
 11002  1         X               8 XXXXXXXX
 11001  1         X               7 XXXXXXX
 11000  1         X               5 XXXXX
 10931  1         X               7 XXXXXXX
 10930  1         X               6 XXXXXX
 10929  1         X               7 XXXXXXX
 10928  1         X               7 XXXXXXX
 10927  1         X               8 XXXXXXXX
 10926  1         X               8 XXXXXXXX
 10925  1         X               8 XXXXXXXX
 10924  1         X               8 XXXXXXXX
 10923  1         X               8 XXXXXXXX
 10922  1         X               5 XXXXX
 10921  1         X               3 XXX
 10920  1         X               2 XX
 10919  1         X               2 XX
 10918  1         X               2 XX
 10917  1         X               2 XX
 10916  1         X               2 XX
 10915  1         X               1 X
 10914  1         X               1 X
 10913  1         X               1 X
 10907  1    Y    Y               1 X
 10906  1    Y    Y               1 X
 10905  1    Y    Y               1 X
 10904  1    Y    Y               2 XX
 10903  1    Y    Y               3 XXX
 10902  1    Y    Y               3 XXX
 10901  1    Y    Y               3 XXX
 10900  1    Y    Y               3 XXX
 10831  1    Y    Y               5 XXXXX
 10830  1    Y    Y               6 XXXXXX
 10829  1    Y    Y              10 XXXXXXXXXX
 10828  1    Y    Y              11 XXXXXXXXXXX
 10827  1    Y    Y              12 XXXXXXXXXXXX
 10826  1    Y    Y              13 XXXXXXXXXXXXX
 10825  1    Y    Y              12 XXXXXXXXXXXX  <== CLOSE
 10824  1    Y    Y              13 XXXXXXXXXXXXX
 10823  1    Y    Y              11 XXXXXXXXXXX
 10822  1    Y    Y              11 XXXXXXXXXXX
 10821  1    Y    Y               9 XXXXXXXXX
 10820  1    Y    Y               9 XXXXXXXXX
 10819  1    Y    Y               8 XXXXXXXX
 10818  1    Y    Y               7 XXXXXXX
 10817  1    Y    Y               4 XXXX
 10816  1    Y    Y               2 XX
 10815  1    Y    Y               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 11 02 TO 10 18 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11320  1   V     V               1 X
 11319  1   V     V               2 XX
 11318  1   V     V               3 XXX
 11317  1   V     V               3 XXX
 11316  1   V     V               3 XXX
 11315  1   V     V               3 XXX
 11314  1   V     V               3 XXX
 11313  1   V     V               3 XXX
 11312  1   V     V               3 XXX
 11311  1   V     V               3 XXX
 11310  1   V     V               5 XXXXX
 11309  1   V     V               4 XXXX
 11308  1   V     V               4 XXXX
 11307  1   V     V               2 XX
 11306  1   V     V               2 XX
 11305  1   V     V               3 XXX
 11304  1   V     V               3 XXX
 11303  1   V     V               4 XXXX
 11302  1   V     V               4 XXXX
 11301  1   V     V               4 XXXX
 11300  1   V     V               5 XXXXX
 11231  1   V     V               5 XXXXX
 11230  1   V     V               3 XXX
 11229  1   V     V               3 XXX
 11228  1   V     V               3 XXX
 11227  1   V     V               2 XX
 11226  1   V     V               2 XX
 11225  1   V     V               2 XX
 11224  1   V     V               2 XX
 11223  1   V     V               1 X
 11222  1   V     V               1 X
 11221  1   V     V               1 X <== Old breakout (10/11)
 11220  1   V     V               1 X
 11219  1   V     V               1 X
 11218  1   V     V               2 XX
 11217  1   V     V               2 XX
 11216  1   V     V               2 XX
 11215  1   V     V               2 XX
 11214  1   V     V               2 XX
 11213  1   V     V               1 X
 11212  1   V     V               1 X
 11211  1   V     V               2 XX
 11210  1   V     V               2 XX
 11209  1   V     V               2 XX
 11208  1   V     V               2 XX
 11207  1   V     V               2 XX
 11206  1   V     V               1 X
 11205  1   V     V               1 X
 11204  1   V     V               1 X
 11203  1   V     V               1 X
 11108  1         W               1 X
 11107  1         W               1 X
 11106  1         W               1 X
 11105  1         W               1 X
 11104  1         W               3 XXX
 11103  1         W               3 XXX
 11102  1         W               4 XXXX
 11101  1         W               5 XXXXX
 11100  1         W               4 XXXX
 11031  1         W               4 XXXX
 11030  1         W               6 XXXXXX
 11029  1         W               6 XXXXXX
 11028  1         W               7 XXXXXXX
 11027  1         W               7 XXXXXXX
 11026  1         W               7 XXXXXXX
 11025  1         W               6 XXXXXX
 11024  1         W               6 XXXXXX
 11023  1         W               5 XXXXX
 11022  1         W               3 XXX
 11021  1         W               1 X
 11020  1         W               4 XXXX
 11019  1         W               5 XXXXX
 11018  1         W               4 XXXX
 11017  1         W               4 XXXX
 11016  1         W               4 XXXX
 11015  1         W               4 XXXX
 11014  1         W               3 XXX
 11013  1         W               2 XX
 11012  2         WX              3 XXX
 11011  2         WX              3 XXX
 11010  2         WX              2 XX
 11009  2         WX              2 XX
 11008  2         WX              4 XXXX
 11007  2         WX              5 XXXXX
 11006  2         WX              7 XXXXXXX
 11005  2         WX              7 XXXXXXX
 11004  2         WX              9 XXXXXXXXX
 11003  2         WX              8 XXXXXXXX
 11002  1         X               8 XXXXXXXX
 11001  1         X               7 XXXXXXX
 11000  1         X               5 XXXXX
 10931  1         X               7 XXXXXXX
 10930  1         X               6 XXXXXX
 10929  1         X               7 XXXXXXX
 10928  1         X               7 XXXXXXX
 10927  1         X               8 XXXXXXXX
 10926  1         X               8 XXXXXXXX
 10925  1         X               8 XXXXXXXX
 10924  1         X               8 XXXXXXXX
 10923  1         X               8 XXXXXXXX
 10922  1         X               5 XXXXX
 10921  1         X               3 XXX
 10920  1         X               2 XX
 10919  1         X               2 XX
 10918  1         X               2 XX
 10917  1         X               2 XX
 10916  1         X               2 XX
 10915  1         X               1 X
 10914  1         X               1 X
 10913  1         X               1 X
 10907  1         Y               1 X
 10906  1         Y               1 X
 10905  1         Y               1 X
 10904  1         Y               2 XX
 10903  1         Y               3 XXX
 10902  1         Y               3 XXX
 10901  1         Y               3 XXX
 10900  2    Z    YZ              4 XXXX
 10831  2    Z    YZ              7 XXXXXXX
 10830  2    Z    YZ              8 XXXXXXXX
 10829  2    Z    YZ             12 XXXXXXXXXXXX
 10828  2    Z    YZ             13 XXXXXXXXXXXXX
 10827  2    Z    YZ             14 XXXXXXXXXXXXXX
 10826  2    Z    YZ             15 XXXXXXXXXXXXXXX
 10825  2    Z    YZ             14 XXXXXXXXXXXXXX
 10824  2    Z    YZ             18 XXXXXXXXXXXXXXXXXX
 10823  2    Z    YZ             16 XXXXXXXXXXXXXXXX
 10822  2    Z    YZ             17 XXXXXXXXXXXXXXXXX  <== CLOSE
 10821  2    Z    YZ             16 XXXXXXXXXXXXXXXX
 10820  2    Z    YZ             18 XXXXXXXXXXXXXXXXXX
 10819  2    Z    YZ             17 XXXXXXXXXXXXXXXXX
 10818  2    Z    YZ             16 XXXXXXXXXXXXXXXX
 10817  2    Z    YZ             13 XXXXXXXXXXXXX
 10816  2    Z    YZ              8 XXXXXXXX
 10815  2    Z    YZ              6 XXXXXX
 10814  1    Z    Z               5 XXXXX
 10813  1    Z    Z               4 XXXX
 10812  1    Z    Z               4 XXXX
 10811  1    Z    Z               4 XXXX
 10810  1    Z    Z               4 XXXX
 10809  1    Z    Z               4 XXXX
 10808  1    Z    Z               2 XX
 10807  1    Z    Z               2 XX
 10806  1    Z    Z               2 XX
 10805  1    Z    Z               3 XXX
 10804  1    Z    Z               4 XXXX
 10803  1    Z    Z               4 XXXX
 10802  1    Z    Z               4 XXXX
 10801  1    Z    Z               4 XXXX
 10800  1    Z    Z               3 XXX
 10731  1    Z    Z               2 XX
 10730  1    Z    Z               2 XX
 10729  1    Z    Z               2 XX
 10728  1    Z    Z               2 XX
 10727  1    Z    Z               2 XX
 10726  1    Z    Z               2 XX
 10725  1    Z    Z               1 X
 10724  1    Z    Z               1 X
 10723  1    Z    Z               1 X
 10722  1    Z    Z               1 X
 10720  1    Z    Z               1 X
 10719  1    Z    Z               1 X
 10718  1    Z    Z               1 X
 10717  1    Z    Z               1 X
 10716  1    Z    Z               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 15 02 TO 10 21 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11108  1   W     W               1 X
 11107  1   W     W               1 X
 11106  1   W     W               1 X
 11105  1   W     W               1 X
 11104  1   W     W               3 XXX
 11103  1   W     W               3 XXX
 11102  1   W     W               4 XXXX
 11101  1   W     W               5 XXXXX
 11100  1   W     W               4 XXXX
 11031  1   W     W               4 XXXX
 11030  1   W     W               6 XXXXXX
 11029  1   W     W               6 XXXXXX
 11028  1   W     W               7 XXXXXXX
 11027  1   W     W               7 XXXXXXX
 11026  1   W     W               7 XXXXXXX
 11025  1   W     W               6 XXXXXX
 11024  1   W     W               6 XXXXXX
 11023  1   W     W               5 XXXXX
 11022  1   W     W               3 XXX
 11021  1   W     W               1 X
 11020  1   W     W               4 XXXX
 11019  1   W     W               5 XXXXX
 11018  1   W     W               4 XXXX
 11017  1   W     W               4 XXXX
 11016  1   W     W               4 XXXX
 11015  1   W     W               4 XXXX
 11014  1   W     W               3 XXX
 11013  1   W     W               2 XX
 11012  2   W     WX              3 XXX
 11011  2   W     WX              3 XXX
 11010  2   W     WX              2 XX
 11009  2   W     WX              2 XX
 11008  2   W     WX              4 XXXX
 11007  2   W     WX              5 XXXXX
 11006  2   W     WX              7 XXXXXXX
 11005  2   W     WX              7 XXXXXXX
 11004  2   W     WX              9 XXXXXXXXX
 11003  2   W     WX              8 XXXXXXXX
 11002  1         X               8 XXXXXXXX
 11001  1         X               7 XXXXXXX
 11000  1         X               5 XXXXX
 10931  1         X               7 XXXXXXX
 10930  1         X               6 XXXXXX
 10929  1         X               7 XXXXXXX
 10928  1         X               7 XXXXXXX
 10927  1         X               8 XXXXXXXX
 10926  1         X               8 XXXXXXXX
 10925  1         X               8 XXXXXXXX
 10924  1         X               8 XXXXXXXX
 10923  1         X               8 XXXXXXXX
 10922  1         X               5 XXXXX
 10921  1         X               3 XXX
 10920  1         X               2 XX
 10919  1         X               2 XX
 10918  1         X               2 XX
 10917  1         X               2 XX
 10916  1         X               2 XX
 10915  1         X               1 X
 10914  1         X               1 X
 10913  1         X               1 X
 10907  2    1    Y1              2 XX
 10906  2    1    Y1              2 XX
 10905  2    1    Y1              3 XXX
 10904  2    1    Y1              4 XXXX
 10903  2    1    Y1              5 XXXXX
 10902  2    1    Y1              6 XXXXXX
 10901  2    1    Y1              6 XXXXXX
 10900  3    1    YZ1             7 XXXXXXX
 10831  3    1    YZ1            11 XXXXXXXXXXX
 10830  3    1    YZ1            12 XXXXXXXXXXXX
 10829  3    1    YZ1            15 XXXXXXXXXXXXXXX
 10828  3    1    YZ1            17 XXXXXXXXXXXXXXXXX
 10827  3    1    YZ1            17 XXXXXXXXXXXXXXXXX
 10826  3    1    YZ1            18 XXXXXXXXXXXXXXXXXX
 10825  3    1    YZ1            17 XXXXXXXXXXXXXXXXX
 10824  3    1    YZ1            19 XXXXXXXXXXXXXXXXXXX
 10823  3    1    YZ1            17 XXXXXXXXXXXXXXXXX
 10822  3    1    YZ1            18 XXXXXXXXXXXXXXXXXX
 10821  3    1    YZ1            17 XXXXXXXXXXXXXXXXX
 10820  3    1    YZ1            20 XXXXXXXXXXXXXXXXXXXX
 10819  3    1    YZ1            19 XXXXXXXXXXXXXXXXXXX
 10818  3    1    YZ1            18 XXXXXXXXXXXXXXXXXX
 10817  3    1    YZ1            15 XXXXXXXXXXXXXXX
 10816  3    1    YZ1             9 XXXXXXXXX
 10815  3    1    YZ1             8 XXXXXXXX
 10814  2    1    Z1              7 XXXXXXX
 10813  2    1    Z1              6 XXXXXX
 10812  2    1    Z1              8 XXXXXXXX
 10811  2    1    Z1              9 XXXXXXXXX
 10810  2    1    Z1              9 XXXXXXXXX
 10809  2    1    Z1              9 XXXXXXXXX
 10808  2    1    Z1              8 XXXXXXXX
 10807  2    1    Z1              8 XXXXXXXX
 10806  2    1    Z1             10 XXXXXXXXXX
 10805  2    1    Z1             10 XXXXXXXXXX
 10804  2    1    Z1             11 XXXXXXXXXXX
 10803  2    1    Z1             10 XXXXXXXXXX
 10802  2    1    Z1              9 XXXXXXXXX  <== CLOSE
 10801  2    1    Z1              9 XXXXXXXXX
 10800  2    1    Z1              7 XXXXXXX
 10731  2    1    Z1              6 XXXXXX
 10730  2    1    Z1              6 XXXXXX
 10729  2    1    Z1              6 XXXXXX
 10728  2    1    Z1              6 XXXXXX
 10727  2    1    Z1              6 XXXXXX
 10726  2    1    Z1              4 XXXX
 10725  2    1    Z1              2 XX
 10724  1         Z               1 X
 10723  1         Z               1 X
 10722  1         Z               1 X
 10720  1         Z               1 X
 10719  1         Z               1 X
 10718  1         Z               1 X
 10717  1         Z               1 X
 10716  1         Z               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 16 02 TO 10 22 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11012  1   X     X               1 X
 11011  1   X     X               1 X
 11010  1   X     X               1 X
 11009  1   X     X               1 X
 11008  1   X     X               2 XX
 11007  1   X     X               3 XXX
 11006  1   X     X               5 XXXXX
 11005  1   X     X               5 XXXXX
 11004  1   X     X               7 XXXXXXX
 11003  1   X     X               7 XXXXXXX
 11002  1   X     X               8 XXXXXXXX
 11001  1   X     X               7 XXXXXXX
 11000  1   X     X               5 XXXXX
 10931  1   X     X               7 XXXXXXX
 10930  1   X     X               6 XXXXXX
 10929  1   X     X               7 XXXXXXX
 10928  1   X     X               7 XXXXXXX
 10927  1   X     X               8 XXXXXXXX
 10926  1   X     X               8 XXXXXXXX
 10925  1   X     X               8 XXXXXXXX
 10924  1   X     X               8 XXXXXXXX
 10923  1   X     X               8 XXXXXXXX
 10922  1   X     X               5 XXXXX
 10921  1   X     X               3 XXX
 10920  1   X     X               2 XX
 10919  1   X     X               2 XX
 10918  1   X     X               2 XX
 10917  1   X     X               2 XX
 10916  1   X     X               2 XX
 10915  1   X     X               1 X
 10914  1   X     X               1 X
 10913  1   X     X               1 X
 10907  2         Y1              2 XX
 10906  2         Y1              2 XX
 10905  2         Y1              3 XXX
 10904  2         Y1              4 XXXX
 10903  2         Y1              5 XXXXX
 10902  2         Y1              6 XXXXXX
 10901  2         Y1              6 XXXXXX
 10900  3         YZ1             7 XXXXXXX
 10831  3         YZ1            11 XXXXXXXXXXX
 10830  3         YZ1            12 XXXXXXXXXXXX
 10829  3         YZ1            15 XXXXXXXXXXXXXXX
 10828  3         YZ1            17 XXXXXXXXXXXXXXXXX
 10827  3         YZ1            17 XXXXXXXXXXXXXXXXX
 10826  3         YZ1            18 XXXXXXXXXXXXXXXXXX
 10825  3         YZ1            17 XXXXXXXXXXXXXXXXX
 10824  3         YZ1            19 XXXXXXXXXXXXXXXXXXX
 10823  3         YZ1            17 XXXXXXXXXXXXXXXXX
 10822  3         YZ1            18 XXXXXXXXXXXXXXXXXX
 10821  3         YZ1            17 XXXXXXXXXXXXXXXXX
 10820  3         YZ1            20 XXXXXXXXXXXXXXXXXXXX
 10819  3         YZ1            19 XXXXXXXXXXXXXXXXXXX
 10818  3         YZ1            18 XXXXXXXXXXXXXXXXXX
 10817  3         YZ1            15 XXXXXXXXXXXXXXX
 10816  3         YZ1             9 XXXXXXXXX
 10815  3         YZ1             8 XXXXXXXX
 10814  2         Z1              7 XXXXXXX
 10813  2         Z1              6 XXXXXX
 10812  2         Z1              8 XXXXXXXX
 10811  2         Z1              9 XXXXXXXXX
 10810  3    2    Z12            10 XXXXXXXXXX
 10809  3    2    Z12            11 XXXXXXXXXXX
 10808  3    2    Z12            11 XXXXXXXXXXX
 10807  3    2    Z12            12 XXXXXXXXXXXX
 10806  3    2    Z12            15 XXXXXXXXXXXXXXX
 10805  3    2    Z12            15 XXXXXXXXXXXXXXX
 10804  3    2    Z12            16 XXXXXXXXXXXXXXXX
 10803  3    2    Z12            15 XXXXXXXXXXXXXXX
 10802  3    2    Z12            15 XXXXXXXXXXXXXXX
 10801  3    2    Z12            16 XXXXXXXXXXXXXXXX
 10800  3    2    Z12            14 XXXXXXXXXXXXXX
 10731  3    2    Z12            14 XXXXXXXXXXXXXX
 10730  3    2    Z12            14 XXXXXXXXXXXXXX
 10729  3    2    Z12            16 XXXXXXXXXXXXXXXX
 10728  3    2    Z12            16 XXXXXXXXXXXXXXXX
 10727  3    2    Z12            14 XXXXXXXXXXXXXX
 10726  3    2    Z12            10 XXXXXXXXXX
 10725  3    2    Z12             7 XXXXXXX
 10724  2    2    Z2              6 XXXXXX
 10723  2    2    Z2              6 XXXXXX  <== CLOSE
 10722  2    2    Z2              6 XXXXXX
 10721  1    2    2               4 XXXX
 10720  2    2    Z2              4 XXXX
 10719  2    2    Z2              2 XX
 10718  2    2    Z2              2 XX
 10717  1         Z               1 X
 10716  1         Z               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 17 02 TO 10 23 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 10907  2   Y     Y1              2 XX
 10906  2   Y     Y1              2 XX
 10905  2   Y     Y1              3 XXX
 10904  2   Y     Y1              4 XXXX
 10903  2   Y     Y1              5 XXXXX
 10902  2   Y     Y1              6 XXXXXX
 10901  2   Y     Y1              6 XXXXXX
 10900  3   Y     YZ1             7 XXXXXXX
 10831  3   Y     YZ1            11 XXXXXXXXXXX
 10830  3   Y     YZ1            12 XXXXXXXXXXXX
 10829  3   Y     YZ1            15 XXXXXXXXXXXXXXX
 10828  3   Y     YZ1            17 XXXXXXXXXXXXXXXXX
 10827  3   Y     YZ1            17 XXXXXXXXXXXXXXXXX
 10826  3   Y     YZ1            18 XXXXXXXXXXXXXXXXXX
 10825  3   Y     YZ1            17 XXXXXXXXXXXXXXXXX
 10824  3   Y     YZ1            19 XXXXXXXXXXXXXXXXXXX
 10823  4   Y3    YZ13           18 XXXXXXXXXXXXXXXXXX
 10822  4   Y3    YZ13           19 XXXXXXXXXXXXXXXXXXX
 10821  4   Y3    YZ13           18 XXXXXXXXXXXXXXXXXX
 10820  4   Y3    YZ13           21 XXXXXXXXXXXXXXXXXXXXX
 10819  4   Y3    YZ13           21 XXXXXXXXXXXXXXXXXXXXX
 10818  4   Y3    YZ13           22 XXXXXXXXXXXXXXXXXXXXXX
 10817  4   Y3    YZ13           20 XXXXXXXXXXXXXXXXXXXX
 10816  4   Y3    YZ13           14 XXXXXXXXXXXXXX
 10815  4   Y3    YZ13           14 XXXXXXXXXXXXXX
 10814  3    3    Z13            12 XXXXXXXXXXXX
 10813  3    3    Z13            11 XXXXXXXXXXX
 10812  3    3    Z13            13 XXXXXXXXXXXXX
 10811  3    3    Z13            14 XXXXXXXXXXXXXX
 10810  4    3    Z123           14 XXXXXXXXXXXXXX
 10809  4    3    Z123           16 XXXXXXXXXXXXXXXX
 10808  4    3    Z123           15 XXXXXXXXXXXXXXX
 10807  4    3    Z123           16 XXXXXXXXXXXXXXXX
 10806  4    3    Z123           19 XXXXXXXXXXXXXXXXXXX
 10805  4    3    Z123           21 XXXXXXXXXXXXXXXXXXXXX
 10804  4    3    Z123           23 XXXXXXXXXXXXXXXXXXXXXXX
 10803  4    3    Z123           23 XXXXXXXXXXXXXXXXXXXXXXX
 10802  4    3    Z123           23 XXXXXXXXXXXXXXXXXXXXXXX
 10801  4    3    Z123           23 XXXXXXXXXXXXXXXXXXXXXXX
 10800  4    3    Z123           21 XXXXXXXXXXXXXXXXXXXXX
 10731  4    3    Z123           20 XXXXXXXXXXXXXXXXXXXX
 10730  4    3    Z123           19 XXXXXXXXXXXXXXXXXXX
 10729  4    3    Z123           20 XXXXXXXXXXXXXXXXXXXX
 10728  4    3    Z123           19 XXXXXXXXXXXXXXXXXXX
 10727  4    3    Z123           17 XXXXXXXXXXXXXXXXX
 10726  4    3    Z123           13 XXXXXXXXXXXXX
 10725  4    3    Z123           10 XXXXXXXXXX
 10724  3    3    Z23             9 XXXXXXXXX
 10723  3    3    Z23             8 XXXXXXXX
 10722  3    3    Z23             8 XXXXXXXX
 10721  2    3    23              5 XXXXX
 10720  3    3    Z23             5 XXXXX  <== CLOSE
 10719  3    3    Z23             3 XXX
 10718  3    3    Z23             3 XXX
 10717  2    3    Z3              2 XX
 10716  2    3    Z3              2 XX
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 18 02 TO 10 24 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 10907  1         1               1 X
 10906  1         1               1 X
 10905  1         1               2 XX
 10904  1         1               2 XX
 10903  1         1               2 XX
 10902  1         1               3 XXX
 10901  1         1               3 XXX
 10900  2   Z     Z1              4 XXXX
 10831  2   Z     Z1              6 XXXXXX
 10830  2   Z     Z1              6 XXXXXX
 10829  2   Z     Z1              5 XXXXX
 10828  2   Z     Z1              6 XXXXXX
 10827  2   Z     Z1              5 XXXXX
 10826  2   Z     Z1              5 XXXXX
 10825  2   Z     Z1              5 XXXXX
 10824  2   Z     Z1              6 XXXXXX
 10823  3   Z     Z13             7 XXXXXXX
 10822  3   Z     Z13             8 XXXXXXXX
 10821  3   Z     Z13             9 XXXXXXXXX
 10820  3   Z     Z13            12 XXXXXXXXXXXX
 10819  3   Z     Z13            13 XXXXXXXXXXXXX
 10818  3   Z     Z13            15 XXXXXXXXXXXXXXX
 10817  4   Z4    Z134           18 XXXXXXXXXXXXXXXXXX
 10816  4   Z4    Z134           14 XXXXXXXXXXXXXX
 10815  4   Z4    Z134           15 XXXXXXXXXXXXXXX
 10814  4   Z4    Z134           14 XXXXXXXXXXXXXX  <== CLOSE
 10813  4   Z4    Z134           13 XXXXXXXXXXXXX
 10812  4   Z4    Z134           14 XXXXXXXXXXXXXX
 10811  4   Z4    Z134           15 XXXXXXXXXXXXXXX
 10810  5   Z4    Z1234          15 XXXXXXXXXXXXXXX
 10809  5   Z4    Z1234          18 XXXXXXXXXXXXXXXXXX
 10808  5   Z4    Z1234          17 XXXXXXXXXXXXXXXXX
 10807  5   Z4    Z1234          18 XXXXXXXXXXXXXXXXXX
 10806  5   Z4    Z1234          21 XXXXXXXXXXXXXXXXXXXXX
 10805  5   Z4    Z1234          24 XXXXXXXXXXXXXXXXXXXXXXXX
 10804  5   Z4    Z1234          27 XXXXXXXXXXXXXXXXXXXXXXXXXXX
 10803  5   Z4    Z1234          26 XXXXXXXXXXXXXXXXXXXXXXXXXX
 10802  5   Z4    Z1234          26 XXXXXXXXXXXXXXXXXXXXXXXXXX
 10801  5   Z4    Z1234          26 XXXXXXXXXXXXXXXXXXXXXXXXXX
 10800  5   Z4    Z1234          24 XXXXXXXXXXXXXXXXXXXXXXXX
 10731  5   Z4    Z1234          24 XXXXXXXXXXXXXXXXXXXXXXXX
 10730  5   Z4    Z1234          23 XXXXXXXXXXXXXXXXXXXXXXX
 10729  5   Z4    Z1234          25 XXXXXXXXXXXXXXXXXXXXXXXXX
 10728  5   Z4    Z1234          24 XXXXXXXXXXXXXXXXXXXXXXXX
 10727  5   Z4    Z1234          22 XXXXXXXXXXXXXXXXXXXXXX
 10726  5   Z4    Z1234          19 XXXXXXXXXXXXXXXXXXX
 10725  5   Z4    Z1234          16 XXXXXXXXXXXXXXXX
 10724  4   Z4    Z234           15 XXXXXXXXXXXXXXX
 10723  4   Z4    Z234           16 XXXXXXXXXXXXXXXX
 10722  4   Z4    Z234           14 XXXXXXXXXXXXXX
 10721  3   Z4    234             9 XXXXXXXXX
 10720  4   Z4    Z234           10 XXXXXXXXXX
 10719  4   Z4    Z234            8 XXXXXXXX
 10718  4   Z4    Z234            7 XXXXXXX
 10717  3   Z4    Z34             7 XXXXXXX
 10716  3   Z4    Z34             7 XXXXXXX
 10715  1    4    4               5 XXXXX
 10714  1    4    4               5 XXXXX
 10713  1    4    4               4 XXXX
 10712  1    4    4               4 XXXX
 10711  1    4    4               4 XXXX
 10710  1    4    4               3 XXX
 10709  1    4    4               3 XXX
 10708  1    4    4               3 XXX
 10707  1    4    4               3 XXX
 10706  1    4    4               1 X
 10705  1    4    4               1 X
 10704  1    4    4               1 X
 10703  1    4    4               1 X
 10702  1    4    4               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 21 02 TO 10 25 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 10907  1   1     1               1 X
 10906  1   1     1               1 X
 10905  1   1     1               2 XX
 10904  2   15    15              4 XXXX
 10903  2   15    15              5 XXXXX
 10902  2   15    15              7 XXXXXXX
 10901  2   15    15              9 XXXXXXXXX
 10900  2   15    15             14 XXXXXXXXXXXXXX  <== CLOSE
 10831  2   15    15             16 XXXXXXXXXXXXXXXX
 10830  2   15    15             16 XXXXXXXXXXXXXXXX
 10829  2   15    15             15 XXXXXXXXXXXXXXX
 10828  2   15    15             16 XXXXXXXXXXXXXXXX
 10827  2   15    15             15 XXXXXXXXXXXXXXX
 10826  2   15    15             12 XXXXXXXXXXXX
 10825  2   15    15             11 XXXXXXXXXXX
 10824  2   15    15              8 XXXXXXXX
 10823  3   15    135             8 XXXXXXXX
 10822  3   15    135             6 XXXXXX
 10821  3   15    135             5 XXXXX
 10820  3   15    135             6 XXXXXX
 10819  3   15    135             7 XXXXXXX
 10818  3   15    135             8 XXXXXXXX
 10817  4   15    1345           11 XXXXXXXXXXX
 10816  4   15    1345            9 XXXXXXXXX
 10815  4   15    1345           11 XXXXXXXXXXX
 10814  4   15    1345           10 XXXXXXXXXX
 10813  4   15    1345           10 XXXXXXXXXX
 10812  3   1     134            10 XXXXXXXXXX
 10811  3   1     134            11 XXXXXXXXXXX
 10810  4   1     1234           11 XXXXXXXXXXX
 10809  4   1     1234           14 XXXXXXXXXXXXXX
 10808  4   1     1234           15 XXXXXXXXXXXXXXX
 10807  4   1     1234           16 XXXXXXXXXXXXXXXX
 10806  4   1     1234           19 XXXXXXXXXXXXXXXXXXX
 10805  4   1     1234           21 XXXXXXXXXXXXXXXXXXXXX
 10804  4   1     1234           23 XXXXXXXXXXXXXXXXXXXXXXX
 10803  4   1     1234           22 XXXXXXXXXXXXXXXXXXXXXX
 10802  4   1     1234           22 XXXXXXXXXXXXXXXXXXXXXX
 10801  4   1     1234           22 XXXXXXXXXXXXXXXXXXXXXX
 10800  4   1     1234           21 XXXXXXXXXXXXXXXXXXXXX
 10731  4   1     1234           22 XXXXXXXXXXXXXXXXXXXXXX
 10730  4   1     1234           21 XXXXXXXXXXXXXXXXXXXXX
 10729  4   1     1234           23 XXXXXXXXXXXXXXXXXXXXXXX
 10728  4   1     1234           22 XXXXXXXXXXXXXXXXXXXXXX
 10727  4   1     1234           20 XXXXXXXXXXXXXXXXXXXX
 10726  4   1     1234           17 XXXXXXXXXXXXXXXXX
 10725  4   1     1234           15 XXXXXXXXXXXXXXX
 10724  3         234            14 XXXXXXXXXXXXXX
 10723  3         234            15 XXXXXXXXXXXXXXX
 10722  3         234            13 XXXXXXXXXXXXX
 10721  3         234             9 XXXXXXXXX
 10720  3         234             9 XXXXXXXXX
 10719  3         234             7 XXXXXXX
 10718  3         234             6 XXXXXX
 10717  2         34              6 XXXXXX
 10716  2         34              6 XXXXXX
 10715  1         4               5 XXXXX
 10714  1         4               5 XXXXX
 10713  1         4               4 XXXX
 10712  1         4               4 XXXX
 10711  1         4               4 XXXX
 10710  1         4               3 XXX
 10709  1         4               3 XXX
 10708  1         4               3 XXX
 10707  1         4               3 XXX
 10706  1         4               1 X
 10705  1         4               1 X
 10704  1         4               1 X
 10703  1         4               1 X
 10702  1         4               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 22 02 TO 10 28 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 10912  1    6    6               1 X
 10911  1    6    6               2 XX
 10910  1    6    6               2 XX
 10909  1    6    6               6 XXXXXX
 10908  1    6    6               7 XXXXXXX
 10907  1    6    6               7 XXXXXXX
 10906  1    6    6               8 XXXXXXXX
 10905  1    6    6               6 XXXXXX
 10904  2    6    56              9 XXXXXXXXX
 10903  2    6    56             10 XXXXXXXXXX
 10902  2    6    56             11 XXXXXXXXXXX
 10901  2    6    56             15 XXXXXXXXXXXXXXX
 10900  2    6    56             20 XXXXXXXXXXXXXXXXXXXX
 10831  2    6    56             19 XXXXXXXXXXXXXXXXXXX  <== CLOSE
 10830  2    6    56             19 XXXXXXXXXXXXXXXXXXX
 10829  2    6    56             19 XXXXXXXXXXXXXXXXXXX
 10828  2    6    56             18 XXXXXXXXXXXXXXXXXX
 10827  2    6    56             15 XXXXXXXXXXXXXXX
 10826  2    6    56             10 XXXXXXXXXX
 10825  1         5               8 XXXXXXXX
 10824  1         5               7 XXXXXXX
 10823  2         35              7 XXXXXXX
 10822  2         35              5 XXXXX
 10821  2         35              4 XXXX
 10820  2         35              4 XXXX
 10819  2         35              5 XXXXX
 10818  2         35              6 XXXXXX
 10817  3         345             9 XXXXXXXXX
 10816  3         345             8 XXXXXXXX
 10815  3         345             9 XXXXXXXXX
 10814  3         345             8 XXXXXXXX
 10813  3         345             8 XXXXXXXX
 10812  2         34              6 XXXXXX
 10811  2         34              6 XXXXXX
 10810  3   2     234             6 XXXXXX
 10809  3   2     234             9 XXXXXXXXX
 10808  3   2     234             9 XXXXXXXXX
 10807  3   2     234            10 XXXXXXXXXX
 10806  3   2     234            11 XXXXXXXXXXX
 10805  3   2     234            14 XXXXXXXXXXXXXX
 10804  3   2     234            16 XXXXXXXXXXXXXXXX
 10803  3   2     234            16 XXXXXXXXXXXXXXXX
 10802  3   2     234            17 XXXXXXXXXXXXXXXXX
 10801  3   2     234            17 XXXXXXXXXXXXXXXXX
 10800  3   2     234            17 XXXXXXXXXXXXXXXXX
 10731  3   2     234            18 XXXXXXXXXXXXXXXXXX
 10730  3   2     234            17 XXXXXXXXXXXXXXXXX
 10729  3   2     234            19 XXXXXXXXXXXXXXXXXXX
 10728  3   2     234            18 XXXXXXXXXXXXXXXXXX
 10727  3   2     234            16 XXXXXXXXXXXXXXXX
 10726  3   2     234            15 XXXXXXXXXXXXXXX
 10725  3   2     234            14 XXXXXXXXXXXXXX
 10724  3   2     234            14 XXXXXXXXXXXXXX
 10723  3   2     234            15 XXXXXXXXXXXXXXX
 10722  3   2     234            13 XXXXXXXXXXXXX
 10721  3   2     234             9 XXXXXXXXX
 10720  3   2     234             9 XXXXXXXXX
 10719  3   2     234             7 XXXXXXX
 10718  3   2     234             6 XXXXXX
 10717  2         34              6 XXXXXX
 10716  2         34              6 XXXXXX
 10715  1         4               5 XXXXX
 10714  1         4               5 XXXXX
 10713  1         4               4 XXXX
 10712  1         4               4 XXXX
 10711  1         4               4 XXXX
 10710  1         4               3 XXX
 10709  1         4               3 XXX
 10708  1         4               3 XXX
 10707  1         4               3 XXX
 10706  1         4               1 X
 10705  1         4               1 X
 10704  1         4               1 X
 10703  1         4               1 X
 10702  1         4               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 23 02 TO 10 29 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11101  1    7    7               1 X
 11100  1    7    7               4 XXXX
 11031  1    7    7               5 XXXXX
 11030  1    7    7               6 XXXXXX
 11029  1    7    7               7 XXXXXXX
 11028  1    7    7               7 XXXXXXX
 11027  1    7    7               8 XXXXXXXX
 11026  1    7    7               8 XXXXXXXX
 11025  1    7    7               9 XXXXXXXXX
 11024  1    7    7               8 XXXXXXXX
 11023  1    7    7               8 XXXXXXXX
 11022  1    7    7               9 XXXXXXXXX
 11021  1    7    7               7 XXXXXXX
 11020  1    7    7               5 XXXXX
 11019  1    7    7               4 XXXX
 11018  1    7    7               5 XXXXX  <== CLOSE
 11017  1    7    7               5 XXXXX
 11016  1    7    7               4 XXXX
 11015  1    7    7               3 XXX
 11014  1    7    7               2 XX
 11013  1    7    7               1 X
 11012  1    7    7               1 X
 11011  1    7    7               1 X
 11010  1    7    7               1 X
 11009  1    7    7               1 X
 11008  1    7    7               1 X
 11007  1    7    7               1 X
 11006  1    7    7               1 X
 11005  1    7    7               1 X
 11004  1    7    7               1 X
 11003  1    7    7               1 X
 11002  1    7    7               1 X
 11001  1    7    7               1 X
 11000  1    7    7               1 X
 10931  1    7    7               1 X
 10930  1    7    7               1 X
 10929  1    7    7               1 X
 10928  1    7    7               1 X
 10927  1    7    7               1 X
 10926  1    7    7               2 XX
 10925  1    7    7               2 XX
 10924  1    7    7               3 XXX
 10923  1    7    7               3 XXX
 10922  1    7    7               2 XX
 10921  1    7    7               2 XX
 10920  1    7    7               1 X
 10919  1    7    7               1 X
 10918  1    7    7               2 XX
 10917  1    7    7               2 XX
 10916  1    7    7               2 XX
 10915  1    7    7               1 X
 10914  1    7    7               1 X
 10913  1    7    7               1 X
 10912  2    7    67              2 XX
 10911  2    7    67              3 XXX
 10910  2    7    67              3 XXX
 10909  2    7    67              7 XXXXXXX
 10908  1         6               7 XXXXXXX
 10907  1         6               7 XXXXXXX
 10906  1         6               8 XXXXXXXX
 10905  1         6               6 XXXXXX
 10904  2         56              9 XXXXXXXXX
 10903  2         56             10 XXXXXXXXXX
 10902  2         56             11 XXXXXXXXXXX
 10901  2         56             15 XXXXXXXXXXXXXXX
 10900  2         56             20 XXXXXXXXXXXXXXXXXXXX
 10831  2         56             19 XXXXXXXXXXXXXXXXXXX
 10830  2         56             19 XXXXXXXXXXXXXXXXXXX
 10829  2         56             19 XXXXXXXXXXXXXXXXXXX
 10828  2         56             18 XXXXXXXXXXXXXXXXXX
 10827  2         56             15 XXXXXXXXXXXXXXX
 10826  2         56             10 XXXXXXXXXX
 10825  1         5               8 XXXXXXXX
 10824  1         5               7 XXXXXXX
 10823  2   3     35              7 XXXXXXX
 10822  2   3     35              5 XXXXX
 10821  2   3     35              4 XXXX
 10820  2   3     35              4 XXXX
 10819  2   3     35              5 XXXXX
 10818  2   3     35              6 XXXXXX
 10817  3   3     345             9 XXXXXXXXX
 10816  3   3     345             8 XXXXXXXX
 10815  3   3     345             9 XXXXXXXXX
 10814  3   3     345             8 XXXXXXXX
 10813  3   3     345             8 XXXXXXXX
 10812  2   3     34              6 XXXXXX
 10811  2   3     34              6 XXXXXX
 10810  2   3     34              5 XXXXX
 10809  2   3     34              7 XXXXXXX
 10808  2   3     34              6 XXXXXX
 10807  2   3     34              6 XXXXXX
 10806  2   3     34              6 XXXXXX
 10805  2   3     34              9 XXXXXXXXX
 10804  2   3     34             11 XXXXXXXXXXX
 10803  2   3     34             11 XXXXXXXXXXX
 10802  2   3     34             11 XXXXXXXXXXX
 10801  2   3     34             10 XXXXXXXXXX
 10800  2   3     34             10 XXXXXXXXXX
 10731  2   3     34             10 XXXXXXXXXX
 10730  2   3     34              9 XXXXXXXXX
 10729  2   3     34              9 XXXXXXXXX
 10728  2   3     34              8 XXXXXXXX
 10727  2   3     34              8 XXXXXXXX
 10726  2   3     34              9 XXXXXXXXX
 10725  2   3     34              9 XXXXXXXXX
 10724  2   3     34              9 XXXXXXXXX
 10723  2   3     34             10 XXXXXXXXXX
 10722  2   3     34              8 XXXXXXXX
 10721  2   3     34              5 XXXXX
 10720  2   3     34              6 XXXXXX
 10719  2   3     34              6 XXXXXX
 10718  2   3     34              5 XXXXX
 10717  2   3     34              6 XXXXXX
 10716  2   3     34              6 XXXXXX
 10715  1         4               5 XXXXX
 10714  1         4               5 XXXXX
 10713  1         4               4 XXXX
 10712  1         4               4 XXXX
 10711  1         4               4 XXXX
 10710  1         4               3 XXX
 10709  1         4               3 XXX
 10708  1         4               3 XXX
 10707  1         4               3 XXX
 10706  1         4               1 X
 10705  1         4               1 X
 10704  1         4               1 X
 10703  1         4               1 X
 10702  1         4               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 24 02 TO 10 30 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11101  1         7               1 X
 11100  1         7               4 XXXX
 11031  1         7               5 XXXXX
 11030  1         7               6 XXXXXX
 11029  1         7               7 XXXXXXX
 11028  1         7               7 XXXXXXX
 11027  1         7               8 XXXXXXXX
 11026  1         7               8 XXXXXXXX
 11025  1         7               9 XXXXXXXXX
 11024  2    8    78             10 XXXXXXXXXX
 11023  2    8    78             10 XXXXXXXXXX
 11022  2    8    78             11 XXXXXXXXXXX
 11021  2    8    78              9 XXXXXXXXX
 11020  2    8    78              8 XXXXXXXX
 11019  2    8    78              7 XXXXXXX
 11018  2    8    78              8 XXXXXXXX
 11017  2    8    78              8 XXXXXXXX
 11016  2    8    78              7 XXXXXXX
 11015  2    8    78              6 XXXXXX
 11014  2    8    78              6 XXXXXX
 11013  2    8    78              7 XXXXXXX
 11012  2    8    78              6 XXXXXX
 11011  2    8    78              6 XXXXXX
 11010  2    8    78              7 XXXXXXX
 11009  2    8    78              8 XXXXXXXX
 11008  2    8    78              8 XXXXXXXX
 11007  2    8    78              8 XXXXXXXX  <== CLOSE
 11006  2    8    78              9 XXXXXXXXX
 11005  2    8    78             10 XXXXXXXXXX
 11004  2    8    78              9 XXXXXXXXX
 11003  2    8    78              9 XXXXXXXXX
 11002  2    8    78              7 XXXXXXX
 11001  2    8    78              6 XXXXXX
 11000  2    8    78              6 XXXXXX
 10931  2    8    78              4 XXXX
 10930  2    8    78              3 XXX
 10929  2    8    78              2 XX
 10928  1         7               1 X
 10927  1         7               1 X
 10926  1         7               2 XX
 10925  1         7               2 XX
 10924  1         7               3 XXX
 10923  1         7               3 XXX
 10922  1         7               2 XX
 10921  1         7               2 XX
 10920  1         7               1 X
 10919  1         7               1 X
 10918  1         7               2 XX
 10917  1         7               2 XX
 10916  1         7               2 XX
 10915  1         7               1 X
 10914  1         7               1 X
 10913  1         7               1 X
 10912  2         67              2 XX
 10911  2         67              3 XXX
 10910  2         67              3 XXX
 10909  2         67              7 XXXXXXX
 10908  1         6               7 XXXXXXX
 10907  1         6               7 XXXXXXX
 10906  1         6               8 XXXXXXXX
 10905  1         6               6 XXXXXX
 10904  2         56              9 XXXXXXXXX
 10903  2         56             10 XXXXXXXXXX
 10902  2         56             11 XXXXXXXXXXX
 10901  2         56             15 XXXXXXXXXXXXXXX
 10900  2         56             20 XXXXXXXXXXXXXXXXXXXX
 10831  2         56             19 XXXXXXXXXXXXXXXXXXX
 10830  2         56             19 XXXXXXXXXXXXXXXXXXX
 10829  2         56             19 XXXXXXXXXXXXXXXXXXX
 10828  2         56             18 XXXXXXXXXXXXXXXXXX
 10827  2         56             15 XXXXXXXXXXXXXXX
 10826  2         56             10 XXXXXXXXXX
 10825  1         5               8 XXXXXXXX
 10824  1         5               7 XXXXXXX
 10823  1         5               6 XXXXXX
 10822  1         5               4 XXXX
 10821  1         5               3 XXX
 10820  1         5               3 XXX
 10819  1         5               3 XXX
 10818  1         5               2 XX
 10817  2   4     45              4 XXXX
 10816  2   4     45              3 XXX
 10815  2   4     45              3 XXX
 10814  2   4     45              3 XXX
 10813  2   4     45              3 XXX
 10812  1   4     4               1 X
 10811  1   4     4               1 X
 10810  1   4     4               1 X
 10809  1   4     4               2 XX
 10808  1   4     4               2 XX
 10807  1   4     4               2 XX
 10806  1   4     4               2 XX
 10805  1   4     4               3 XXX
 10804  1   4     4               4 XXXX
 10803  1   4     4               3 XXX
 10802  1   4     4               3 XXX
 10801  1   4     4               3 XXX
 10800  1   4     4               3 XXX
 10731  1   4     4               4 XXXX
 10730  1   4     4               4 XXXX
 10729  1   4     4               5 XXXXX
 10728  1   4     4               5 XXXXX
 10727  1   4     4               5 XXXXX
 10726  1   4     4               6 XXXXXX
 10725  1   4     4               6 XXXXXX
 10724  1   4     4               6 XXXXXX
 10723  1   4     4               8 XXXXXXXX
 10722  1   4     4               6 XXXXXX
 10721  1   4     4               4 XXXX
 10720  1   4     4               5 XXXXX
 10719  1   4     4               5 XXXXX
 10718  1   4     4               4 XXXX
 10717  1   4     4               5 XXXXX
 10716  1   4     4               5 XXXXX
 10715  1   4     4               5 XXXXX
 10714  1   4     4               5 XXXXX
 10713  1   4     4               4 XXXX
 10712  1   4     4               4 XXXX
 10711  1   4     4               4 XXXX
 10710  1   4     4               3 XXX
 10709  1   4     4               3 XXX
 10708  1   4     4               3 XXX
 10707  1   4     4               3 XXX
 10706  1   4     4               1 X
 10705  1   4     4               1 X
 10704  1   4     4               1 X
 10703  1   4     4               1 X
 10702  1   4     4               1 X
 
 

TPO VOLUME OVERLAY AND PRICE ROTATION PROFILE
DEC 02 T-BOND (CBOT) DAY     
10 25 02 TO 10 31 02

 PRICE DYS  L/F ROT PROFILE *  TPOS TPO VOL OVERLAY *
 
 11102  1    9    9               1 X
 11101  2    9    79              2 XX
 11100  2    9    79              6 XXXXXX
 11031  2    9    79              7 XXXXXXX
 11030  2    9    79              8 XXXXXXXX
 11029  2    9    79              9 XXXXXXXXX
 11028  2    9    79              9 XXXXXXXXX
 11027  2    9    79             11 XXXXXXXXXXX
 11026  2    9    79             11 XXXXXXXXXXX
 11025  2    9    79             15 XXXXXXXXXXXXXXX
 11024  3    9    789            16 XXXXXXXXXXXXXXXX
 11023  3    9    789            16 XXXXXXXXXXXXXXXX
 11022  3    9    789            17 XXXXXXXXXXXXXXXXX
 11021  3    9    789            14 XXXXXXXXXXXXXX  <== CLOSE
 11020  3    9    789            12 XXXXXXXXXXXX
 11019  3    9    789             9 XXXXXXXXX
 11018  3    9    789            12 XXXXXXXXXXXX
 11017  3    9    789            11 XXXXXXXXXXX
 11016  3    9    789            11 XXXXXXXXXXX
 11015  3    9    789            11 XXXXXXXXXXX
 11014  3    9    789            11 XXXXXXXXXXX
 11013  3    9    789            12 XXXXXXXXXXXX
 11012  3    9    789            11 XXXXXXXXXXX
 11011  3    9    789            11 XXXXXXXXXXX
 11010  3    9    789            11 XXXXXXXXXXX
 11009  3    9    789            12 XXXXXXXXXXXX
 11008  3    9    789            12 XXXXXXXXXXXX
 11007  3    9    789            13 XXXXXXXXXXXXX
 11006  3    9    789            13 XXXXXXXXXXXXX
 11005  3    9    789            14 XXXXXXXXXXXXXX
 11004  3    9    789            14 XXXXXXXXXXXXXX
 11003  3    9    789            14 XXXXXXXXXXXXXX
 11002  3    9    789            12 XXXXXXXXXXXX
 11001  3    9    789            10 XXXXXXXXXX
 11000  3    9    789             9 XXXXXXXXX
 10931  3    9    789             6 XXXXXX
 10930  3    9    789             5 XXXXX
 10929  3    9    789             3 XXX
 10928  1         7               1 X
 10927  1         7               1 X
 10926  1         7               2 XX
 10925  1         7               2 XX
 10924  1         7               3 XXX
 10923  1         7               3 XXX
 10922  1         7               2 XX
 10921  1         7               2 XX
 10920  1         7               1 X
 10919  1         7               1 X
 10918  1         7               2 XX
 10917  1         7               2 XX
 10916  1         7               2 XX
 10915  1         7               1 X
 10914  1         7               1 X
 10913  1         7               1 X
 10912  2         67              2 XX
 10911  2         67              3 XXX
 10910  2         67              3 XXX
 10909  2         67              7 XXXXXXX
 10908  1         6               7 XXXXXXX
 10907  1         6               7 XXXXXXX
 10906  1         6               8 XXXXXXXX
 10905  1         6               6 XXXXXX
 10904  2   5     56              9 XXXXXXXXX
 10903  2   5     56             10 XXXXXXXXXX
 10902  2   5     56             11 XXXXXXXXXXX
 10901  2   5     56             15 XXXXXXXXXXXXXXX
 10900  2   5     56             20 XXXXXXXXXXXXXXXXXXXX
 10831  2   5     56             19 XXXXXXXXXXXXXXXXXXX
 10830  2   5     56             19 XXXXXXXXXXXXXXXXXXX
 10829  2   5     56             19 XXXXXXXXXXXXXXXXXXX
 10828  2   5     56             18 XXXXXXXXXXXXXXXXXX
 10827  2   5     56             15 XXXXXXXXXXXXXXX
 10826  2   5     56             10 XXXXXXXXXX
 10825  1   5     5               8 XXXXXXXX
 10824  1   5     5               7 XXXXXXX
 10823  1   5     5               6 XXXXXX
 10822  1   5     5               4 XXXX
 10821  1   5     5               3 XXX
 10820  1   5     5               3 XXX
 10819  1   5     5               3 XXX
 10818  1   5     5               2 XX
 10817  1   5     5               2 XX
 10816  1   5     5               1 X
 10815  1   5     5               1 X
 10814  1   5     5               1 X
 10813  1   5     5               1 X
 
 


The trading equation: enter on the trend, exit on the congestion

Congestion defined
  "To concentrate trading in a small or narrow space"
  How it is measured
    Number of TPOs at a price (concentration of trading) TFF
      Many TPOs at price = high level of price certainty
      Few TPOs at price = low level of certainty
       Within the day congestion:
        Meta-Profile TPOs ==> TFF
        Fine tuning: Meta-Profile from ticks with tick counts

    Diminished volatility
    Often accompanied by change in volume

Use in trading
  Change in congestion alerts to change in market 
    Market in balance is congested
    Phase change to trend accompanied by decrease in congestion
      + increase in volatilty
      + increase in trading range
      + increase in volume
    Phase within a trend
      volatility starts decreasing before peak
      volume ??
      trading range starts decreasing
    Phase change from trend accompanied by increase in congestion
      + decrease in volatilty
      + decrease in trading range

Appears in 
 Short Course
  Lesson 1  Ref pt #6 nodes, consolidation
  Lesson 2  Market shutting down, consolidating, decreasing opportunity
            Congestion ==> end of trend (% of balance range)
            TFF
            Ref pt #6 (same as in Lesson 1)
  Lesson 3  TCP has congestion info
            I. Intra-day congestion Short covering rally example
            Ideal profile congestion
            TFF is one of 12 ref pts from profile
            Visual confirmation on profile
            Exit on congestion
            I. Intra-day congestion Short covering rally
                Section on transition to congestion
                Congestion report
            M. Practice trading  congestion ==> slowdown
                 Several chances to exit (market conviction)
  Lesson 4  Pause, congestion  discriminate between the two
            Examples
              j. Congestion (a lot)
            Congestion Report

 Long Course
  Lesson 1  Exit on congestion 
              Ref pt 6, consolidation
  Lesson 2  Exit on congestion 
              # days to congest: several
  Lesson 6  TFF measure of congestion
  Lesson 7  Congestion examples (many)
  Lesson 9  Pause in trend, nodes
  Lesson 11 Node growing into congestion
            Example 3 day
            Examine ref pts looking for onset of congestion
              Send in to course director
  Lesson 12 Fundamental fundamental: enter on breakout, exit on congestion
            Volatility decrease precursor to congestion
            Money flow in ==> volume up, distr elongated, nodes




* Copyright Donald L. Jones, CISCO Futures 2004