Kairos™
Market Profile or Money Zone(MZ) Indicators
The Money Zone(MZ) indicators are based on the Market Profile. The MZ indicators calculate the price level where there most price activity has occurred ( called the Point of Control or POC) within a given time, usually the previous day, but it can be for 2 or more days.
From the POC, the window containing 70% of the price activity is determined. The high of this area is the Value Area High(VAH) and the low is the VAL. This chart shows the MZMH, which determines the MZ levels based on the price activity during Market Hours(MH).
A recommended book on Market Profile is "Secrets of a Pivot Boss", by Franklin Ochoa. Another one can be found on the CMEGroup website - Market Profile Handbook.
There are 6 different MZ indicators. The Market Hours(MH) indicators base the levels on the price activity during market hours. The '24' indicators base the levels on price activity during the previous 24 hours of price activity. The 'Infl' indicators are a derivative of the Profile indicators and are based only on volume inflections, thresholds can be set for the strength of the inflections. The levels calculated can be used in conditions and trading systems.
- MZ24 - Money Zone 24 hours based on price
- MZ24Vol - Money Zone 24 hours based on Volume
- MZInflVol - Money Zone 24 hours based on Volume Inflections( Strongest to weakest)
- MZInflVolHL - Money Zone 24 hours based on Volume Inflections ( Highest to Lowest)
- MZMH - Money Zone based on price during Market Hours
- MZMHVol - Money Zone based on volume during Market Hours