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Start With An Idea At the beginning of the trading day, your first trade will probably be in the direction of your pre-opening analysis. We develop this idea my looking at our monthly Market Profile chart. Some considerations are the direction of the mode (the price at which the highest...

Software Capabilities Here are some ES trades off a 15 minute chart from today, 5/22/08, that highlight some of the software's capabilities.

Support/Resistance Levels Joab, I too have found that by close examination of a 15 minute chart, or a 300t chart, that I can get support and resistance levels in the bond and the ES. They are pretty close and certainly workable for a swing trader. But for the short term swing trader or the...

Volume Levels The levels we use are as follows: F1 Chart (monthly MP distribution) - 360 days of volume data F2 Chart (Daily MP distribution) - 180 days of volume data F3/F4 Charts (5 min bars) - 30 days of volume data Five days of data will work just as well for the F3/F4. There are...

Hypotheticals I don't have a rational answer to your disaster sconario hypotheticals. What I can say is that good traders never stop learning. I personally know one trader in the TIE room that took 53 handles out of the S&P on a day when the range was 3 handles. Why would he remain in the...

Ignore In response to Reavers question about Trademaven Pro and TIE, they come only as a package. I wasn't ignoring anyone, by the way. I trade for a living and only check the postings early and late in the day. Doug Zalesky sometimes follows the posts during the day, but he is not always...

Supply/Demand vs Volume In response to Hombre's post, I would answer whichever side of the market that volume is entering forces the market in that direction. If there is more sell volume than buy volume, the market goes lower. If there is more buy volume than sell volume, the market goes...

News Day Trade After a news announcement, like PPI on Tuesday, your first job is to determine if the news is positive or negative. Then wait for a pullback to enter. On Tuesday, PPI was negative for the bond. Charles Cochran's called buy level was 116.29 to 117.01. The market hit 116.30...

Both Market Delta and Cisco Futures offer excellent products. I would see the differences this way. Market Delta provides the number of contracts traded at the bid and the ask and provides a nice user defined element to color the rectangles under the bid ask data to show the intensity of the...

Why Not Just Trade For A Living The big picture answer is that we do trade for a living. Doug Zalesky has been a trader in the CBOT Bond pit for over 20 years. Charles Cochran has traded equities and futures for almost 30 years. And they continue to trade even now, but on the screen. The...

Cumulative Volume Histogram StkWiz, perhaps I didn't explain the histogram properly. The cumulative net volume is contracts traded at the ask and bid. The histogram goes below zero when there are more contracts traded at the bid for the day. Note on the 5/19 chart the second test of the...

The width of the bar represents the volume traded on that bar relative to all the other bars on the screen. The color coding parallels the market profile distribution. Yellow is the value area (68% of the traded volume), the green line is the volume weighted mean, the magenta line is the...

Bond Trading Levels for 5/19/08 Rule 1 says low volume areas are support and resistance and should be traded as such. Note how the market stopped within 2 ticks of the low volume area at 116.27. Rule 2 says high volume areas are support and resistance the first time touched. As the market...

Full Disclosure This thread will be updated primarily by Doug Zalesky and Charles Cochran. Doug is a Managing Partner of Tradmaven Group LLC and has been a trader in the CBOT bond pit for 25 years. Charles is a partner in the Trademaven Inside Edge, the educational arm of Trademaven Group LLC...

Conclusion Three rules. Two patterns. One indicator. All based on the Market Profile and keenly focused on volume movement in conjunction with the long-term distribution. The 3-2-1 approach eliminates much of the noise and most of the variables currently used in your approach to trading. You...

The pink or blue square is the equivalent of seeing brokers put their hands down at their sides. It tells you that interest in buying or selling has dried up at this level and it means the market will do one of two things: It will pause and continue moving in it’s current direction after a...

One Indicator Volume deceleration is the final indicator on my 3-2-1 list for establishing good trade location. Everyone who’s been trading for any amount of time has been steamrolled a time or two. And if you’ve ever visited the trading floor at the Chicago Board of Trade, you can see...

Once you discover the skewing in a distribution and understand what causes this skewing, you then understand that all you really need to know is which way the distribution is skewed. This shows the market’s next directional move without news. Combine this directional knowledge with the...

Two Patterns When it comes to trading, there are 2 distinct, primary patterns that offer the most potential to trade: A capital “P” pattern indicates a retest of resistance and/or higher prices. A lower case “b” pattern shows a retest of support and/or lower prices.

Caveat: there are MoMs and there are MoMs. MoMs can develop over 2-3 hours, days or months. The longer time spent building a Balance Point/Point of Control/Mode the greater the impending move. You don’t have to be in a hurry to fade a MoM. In fact, the better trade is to jump on board and go...