CISCO Futures
1-303-306-1521 1-800 800 7227 Fax 1-303-306-1598
Internet http//www.cisco-futures.com
Email dljones@cisco-futures.com

Trading Auction Markets
Locating Resources on the CISCO Website

No matter which analytical tools you use, your job as a trader is to A) get aboard at the beginning of a trend and B) get off when the trend is over (when congestion begins to dominate).

The trick, as we all know, is in recognizing A) and B) early in the game. It helps to know that markets continually cycle through four phases, or conditions the market may be in:
1) balance or congestion,
2) transition to trend,
3) trend
4) transition back to balance.

CISCO has a trademarked methodology, the Visual Graphic (VG), which uses the CISCO Overlay Demand Curve, to guide you to the 'market condition'. If the market is in balance, the balance limits (upper and lower) are posted. Thus, in balanced markets, the limits define value as well. To get the VG:
On Main Page, Pointer to Data
..Pointer to End-of-Day Data and click
....At the box End-of-Day Visual Graphics ONLY
....Pointer to Dynamic Visual Graphic
......Select Commodity and Delivery Month, input Username & Password then submit

The link in the Background box 'Explanation of Visual Graphic' defines the parts.

Value for a single day is found from the Meta-Profile (Value Area).
On Main Page, Pointer to Data
..Pointer to Intra-Day Data and click
....At the box Intra-Day Meta-Profile with Previous Day POC.............
....Pointer to Download Data
......Select Commodity and Delivery Month, input Username & Password then submit

The link in the Background box defines the methodology.

The combination of Meta-Profile and Visual Graphic gives you a dynamic look at the market. Is there balance? If so, what is the Value? The limits then define the breakout prices, top and bottom. And the Meta-Profile can give you corrent value.

When you have a handle on where your market is in its cycle, you are better able to recognize points A) and B). The cycle for any future varies; maybe 10 days for the latest cycle, maybe 18 days for the one before. So the cycle is not a constant (which would be nice!). When you have a good idea of which phase your market is in, you are relieved of the pressure to respond to every bump in price.

Auction market data provides the tools for recognizing the phases in a market's cycle (and much, much more). There are four types of auction market data.
Overlay Demand Curves provide 'market condition', particularly useful in identifying the balance phase.
Profiles break down current (day) activity, showing value, short term balance, professional control and congestion. These profiles are calculated from tick data.
The Liquidity Data Bank lists actual cleared trading volume, how much is contributed by the four classes of exchange members, day value and when and where the commercial traders are dominating. LDB has a Market Profile developed from trading volume.
BuySell Data shows which of the four classes of trader has unbalanced volume and how much is unbalanced. Over a multi-day timeframe you can evaluate who is accumulating positions.


Finding Trading Data on the CISCO Site

Note: nearly all items of trading information on the site have an associated Sample and Background report that you can access.

Trader Control Package (Swing Trader Package) and Visual Graphics (TCP) is the starting point for finding market condition and general market reference points. The Overlays show balances on several time scales (5 to 20 days). It also carries data on volume, commercial capping and Meta-Profile value. TCP is the place to start for all traders; day, swing or position.
TCP Data Page

Meta-Profile is used to analyze the latest completed day and also to track current trading. The current profile offers a wealth of information (see the list of reference points).
CMaPS Meta-Profile Background
Previous day profiles are used in conjunction with TCP in determining trading strategy for the coming day. Current Meta-Profile is the strongest tool on the site for the day-trader.
Intra-Day Data Page

Liquidity Data tells you where the volume took place the previous day. These data are available only for Chicago Board of Trade and Chicago Mercantile exchanges. LDB Data Page
Hourly LDB reports, on the CBOT only, can be found at: LDB Data Page
Intra-Day Data Page

BuySell Data gives the buying, selling and net volumes. These data are available only for Chicago Board of Trade futures.
Liquidity Data/BuySell Page

Swing Trader Package, on homepage, (same as TCP), contains the data needed by the swing/position trader.

Day Trader Package, on homepage, contains the intra-day data for the daytrader.

Advice Engine Package, on homepage, is comprised of the daily Advice Engine Report, including futures selected for superior opportunity, plus the bulk of the Swing Trader and Day Trader Packages.


Trader Training Courses

Auction Market Theory offers the only opportunity to really understand what the market is doing, i.e. balancing, trending or something in between. It is thorough, but not simple. As in all professional endeavors, you need to understand your business. CISCO courses are an efficient way to guide you in reaching understanding.

Short Course is four months of lessons (6) and daily, intra_day (paper) trading practice. Designed for day-traders. Requires attention to the markets within the day. Day and intra-day trading data is included in the course.
ShortHomestudy Page

Long Course is twelve months of lessons (12) and day-end (paper) trading practice. Designed for swing/position-traders. End-of-day analyses are the norm, with no requirement for intra-day market watching. Daily trading data is included in the course.
Homestudy Page

You are urged to study the four types of auction market data before signing up for a course. Of particular importance are the Overlay Demand Curves and the Meta-Profiles.


Studies and Background on the CISCO Site

Research and expository reports on many aspects of trading and understanding markets are found at Background Reading on the home page. Included are details of the Data Types, Data Packages, Home Study Courses and Research Information.

Research Information: The articles posted include the Theory of Auction Markets--most important at a later stage of your development; and studies of particular phenomena. Every trader should become famililar with Trading Model Development, since that is exactly what you are trying to do. Also, the text, 'Value Based Power Trading' is available free in non-printing pdf text (you can download it to your PC).

Many of the articles contain examples, detailing the use of reference points in solving trading questions.

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