Liquidity Data Bank

CBOT LDB volume confirms or contradicts Market Profile: price-level report, CTI categories, and a six-item checklist for continuation vs change.

On this page

Who this entry is for — Anyone already reading price/time in Market Profile who wants actual volume with operational context. CBOT Study Guide, Part VI (1996).

Source: CBOT, Market Profile Home Study Guide (1996), Part VI. Raw: raw/patrimonio-emiciclo/studio-steidlmayer/cbot/part-06-liquidity-data-bank.


Prerequisites

Distribution process, Operational POC and Value Area.


Two halves of Market Profile

Part I organises price and time; the Liquidity Data Bank (LDB) adds actual volume. The same volume profile means opposite things without context: more volume at the top of an uptrend = continuation; at the bottom of a downtrend = possible change.

Required questions: who is buying or selling? and where are we in the longer move?

The LDB report at each price level shows volume, % of total, CTI1/CTI2 %, and half-hour brackets. CBOT volume is multiplied ×2 (buyer + seller sides): divide by 2 for actual contracts.

CBOT LDB report — volume by price with CTI1/CTI2
CBOT Study Guide p. 271 — Liquidity Data Bank Volume Detail Report (corn guide example).

CTI categories

CTI Who
CTI1 Floor traders (locals) trading for own account
CTI2 Clearing commercial members (house account)
CTI3 Members executing for other members
CTI4 Members executing for the public

Estimated «outside» participation: 100 − (CTI1% + CTI2%). CTI2 (commercials) routinely buy below value and sell above value; buying above or selling below value → initiating behaviour, possible trend. Dedicated entry → CTI2 — commercial activity. CTI2 «overwhelming» a distribution → flat top or flat bottom (volumetric minus development).


LDB checklist (continuation vs change)

# Item Weight
1 Total volume High
2 Volume in top/bottom 3–4 ticks of range High
3 Value area (70% range) High
4 TPO value area vs LDB value Medium
5 Upper vs lower half range volume Medium
6 CTI2 activity in value area Medium

Quick rules: down distribution + down development → continuation; down distribution + up development → conflict/change; value area at centre → efficient market, ready for new beginning.

Weight the votes: items 1–3 matter more than 4–6. Three strong pluses vs three weak minuses → continuation likely with an interim pause.


Role in the CBOT path

The Study Guide's six parts are cumulative: minus development (Part V) shows flow direction; LDB confirms what the chart suggests and separates strong from weak uptrends. A decision-support tool, not an automatic buy/sell system.

Guiding rule — If volume increases as price moves, the market is facilitating trade and the move tends to continue.

Common mistake — Reading the volume base in isolation, without tying it to the distribution unit in progress.