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I've recently read 'One Good Trade' by Mike Bella and have a few thoughts/questions I'd be keen to discuss with anyone else who has read it or who is actively trading. The book is highly recommended. (1) The existence of 'basic trading plays' or principles: In Chapter Four, 'Pyramid of...

Initial Balance is defined as the first hour or whatever of trading. This is completely arbitrary when applied to today's markets, but back when this method of visualizing the market was developed, the first hour's range was measured because long-term participants, e.g.,., institutions, hedgers...

I've taken some time to read through market-profile books and from what I've managed to extract by skimming through the relevant books, the essential of the whole approach is: (1) The time-frame of the participants is the most essential feature in relation to their behavior; (2) The amount of...

Hey tommo, good to have you posting in the thread. From what I've seen at prop shops, when people say that, they're usually referring to orders once getting worked idiotically or aggressively vs. a very big & slow order getting worked over a whole session in a mind-numbing grind.

I've noticed this too. I wonder why it's so much more common in Europe (and elsewhere) for people to sit in-front of futures DOMs than in the US? I am guessing it is simply the amount of market-impacting events occurring around a workable European timezone (which includes being able to work US...

Some good posts here from Bone & qlai. Similar to Bone, I don't think it's one thing that'll allow you to master any market, but it can be useful in combination with other knowledge & skills. I think the skill becomes more applicable when: (1) you have good rates (as Bone said), (2) there's a...

Out of curiosity, how do you avoid getting filled other than quoting less if you need to sit x ticks away constantly? And re: hedging it off, is it common for market makers to hedge off automatically into relative value trades or is it mostly pure arb and into the underlying?

Curious given what you're saying, what was/is impact on liquidity if there are no 'daytraders'? and any other interesting impacts on market structure?

I've been doing some reading lately on the concepts behind this charting method (profile) and the only meaning of 'price control' I seemed to find essentially equated to a defined price range. Or is it something else?

Just thinking about this fairly superficially and quickly, that makes sense to me. You'd expect a market with lots of active participants to respond quickly—a measure of time—to a perceived mispricing. That seems to be the essential aspect rather than volume since a large quantity of volume...

What would be your reasoning behind segmenting by volume? And on what reasoned basis would you pick one quantity of volume over another?

I'm curious if anyone has given any thought to or observed how a product that trades across multiple venues (the Euro) trades differently than one where volume is concentrated at one venue (an ASX stock)? One impact I can think of (in the short-term, within the day) is order flow that is much...

I think that's optional. If you find you enjoy trading products you're interested in for reasons other than speculation/intraday pricing inefficiencies/opportunities than that's a good goal if your purpose is to maximize enjoyment. But I don't think it's a good goal if your purpose is to...

Good reply. I agree that maybe it's best to just pick one timezone and stick with it in order to maintain a healthy schedule. A few other ideas: (1) Work around the clock only during particular high volume, high volatility periods. And become a bit more precise in identifying those periods...

I assume by 'fixed time' you mean intervals for the profile set by the market open/closes? And what's 'volume segmentation'? And 'time segmentation'?

My understanding is it tries to emphasize one other dimension of markets that is less looked at: time. On a standard chart we do see volume, price, time, but it's much harder to identify visually what is the average amount of time spent in given areas vs. a market profile chart. Although that...

You're right that it's on whoever is making the claim to prove that there's value in observing volumes. There's no wisdom in volume itself, but there is information contained in volume relative to other volumes or your own trading approach that you can learn use. I can think of a few values...

Thank you for sharing this. A few follow up questions to you or anyone else here: Given this view of what market profile is for, what is it that is added visually that allows one to identify strong intent or directional volume (which is how I interpret "emotion"), as compared to a simply price...

Why do so many directional futures traders seem to lean on this 'market profile' and almost no stock traders do? I'm guessing that with the constant need to shift trade to different products, there's just no time to use such a detailed and analytical tool. But then if it's not needed for...

Hi guys, Just curious if anyone has given any thought to ways to adjust to 24/7 markets generally (apart from staying up 24/7)? One of the advantages (for short-term traders) of markets with opens/closes is the urgency of participants to get orders done around those specific hours thus adding...