A Journey into Market Profile
- Thread starter omniscient
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omniscient
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duard -
thx for the pm. this is a new component for me to learn, but i've already added the $TICKI and $PREM charts in my layout to start observing the behavior.
if you have any additional comments / insight regarding program trading (or anything else, for that matter), please feel free to do so.
again, thx for your time and contribution.
take care and gtty -
omni
omniscient
Guest
since the title / description is usually the same as the filename, i just listed the file / link location only.
Charts for the ER2 today:
http://charts.dacharts.com/2005-06-29/ab629_mp.png
http://charts.dacharts.com/2005-06-29/ab629_mp_splits.png
http://charts.dacharts.com/2005-06-29/ab629_mp_segs_splits.png
http://charts.dacharts.com/2005-06-29/ab629_mp_segs_splits1.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_3odc.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_5odc.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_10odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_3odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_5odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_10odc.png
unless i someone objects, after today i'll just drop in a quick link to the daily directory at dacharts. i'll keep my naming convention the same, so it should always be easy to find.
take care and gtty -
omni
Charts for the ER2 today:
http://charts.dacharts.com/2005-06-29/ab629_mp.png
http://charts.dacharts.com/2005-06-29/ab629_mp_splits.png
http://charts.dacharts.com/2005-06-29/ab629_mp_segs_splits.png
http://charts.dacharts.com/2005-06-29/ab629_mp_segs_splits1.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_3odc.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_5odc.png
http://charts.dacharts.com/2005-06-29/ab629_mp_vs_10odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_3odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_5odc.png
http://charts.dacharts.com/2005-06-29/ab629_new_10odc.png
unless i someone objects, after today i'll just drop in a quick link to the daily directory at dacharts. i'll keep my naming convention the same, so it should always be easy to find.
take care and gtty -
omni
omniscient
Guest
Tomorrow will end my first month back to trading my live account. I wonât lie; the results were less than spectacular. I thought I was closer to being ready, but I guess I had to get in to win.
Market Profile structure has been very reliable. Of course, thatâs easy since it is derived from market generated data. Support and Resistance levels have been very key within this structure. Gaps continue to form and fill. So far, other than the consistency of Market Profile, I have been most surprised with the impact overnight trading can seem to have on RTH trading. Today was another pretty good example (ON-H held to within 2-ticks and ON-L held to a point) of how it can form targets and bounds for the day.
Today is going to be a pretty quick write up â¦
First, I finished down 1.6-points. I initially had trouble getting on the right side of the rotations and found myself in the hole early. However, after missing the early VAH long around 42.6 (because I didnât reverse), I eventually found myself with an upward RE to 46.20 and felt the time was right to short it. Volume was light, DVAH seemed to be a stalling point, and we had double TPOs in the IB as well as a small buying tail in C-period.
There were several rotations down to the 44.8 area and back to the 46.2 area, but I didnât play them. I stayed in my position and put in my OCO before I left for a few hours. Unfortunately for my trade, I transposed part of my orders â I put in an OCO for 46.4 / 43.6 instead of 46.6 / 43.4 (I felt it could go back to VAL, but I donât like making unattended trades as it is).
I know it doesnât look like a big deal, but it turned out to be deal breaking. I got stopped out at the HOD. Meanwhile it did trade down, made it to 33.4, traded down to VAL (and a couple ticks further), and reversed to finish the day right around todayâs POC.
Misplaying this trade was injury enough, but the insult was I know I would not have been stopped out had I been here with my trade. I would not have left a stop sitting there and certainly not at the wrong location.
But I ainât crying. Other than not playing the rotations, I was dead on and I made the right decisions. I didnât get the reward for my decisions, but I did get the experience.
As for MP and other stuff â¦
Pretty simple today. We opened near PDC after gapping up to 46.2 for an ON-H. ON-L was 43.2 and VAH was 42.6 so those are long opportunities. We had a bunch of singles in N-period yesterday and unconfirmed singles in P-period. We had RE up past IB-H, then traded up to ON-H, bounced between 46.2 and 44.8 (10-day POC and DPOC) a few times before finally breaking through the 44.8 support area. We traded down to IB-L and VAL. There was very minor RE down. No volume to speak of below 42.6 and we rallied back up to close at POC of 44.30. Not a big range day in the least, but plenty of multi-point opportunities:
1. OGF â Sell opening around 45.0
2. ON-L â Long around 43.2
3. OR-H â Short failed OR breakout around 45.0
4. VAL â Long around 42.8
5. ON-H â Short around 46.0
6. DPOC / OR-H â Long around 44.9 (resistance now support)
7. ON-H â Short around 46.0
8. DPOC / OR-H â Long around 44.9
9. ON-H â Short around 46.0 (weakening)
10. VAL / IB-L â Long around 42.6
11. Close 44.3
Obviously, fills, slippage, size, and so forth would be different in each case, but even if you could only nail a couple of the trades, you could probably grab 100% of todayâs range and then some.
Take care and gtty â
omni
Market Profile structure has been very reliable. Of course, thatâs easy since it is derived from market generated data. Support and Resistance levels have been very key within this structure. Gaps continue to form and fill. So far, other than the consistency of Market Profile, I have been most surprised with the impact overnight trading can seem to have on RTH trading. Today was another pretty good example (ON-H held to within 2-ticks and ON-L held to a point) of how it can form targets and bounds for the day.
Today is going to be a pretty quick write up â¦
First, I finished down 1.6-points. I initially had trouble getting on the right side of the rotations and found myself in the hole early. However, after missing the early VAH long around 42.6 (because I didnât reverse), I eventually found myself with an upward RE to 46.20 and felt the time was right to short it. Volume was light, DVAH seemed to be a stalling point, and we had double TPOs in the IB as well as a small buying tail in C-period.
There were several rotations down to the 44.8 area and back to the 46.2 area, but I didnât play them. I stayed in my position and put in my OCO before I left for a few hours. Unfortunately for my trade, I transposed part of my orders â I put in an OCO for 46.4 / 43.6 instead of 46.6 / 43.4 (I felt it could go back to VAL, but I donât like making unattended trades as it is).
I know it doesnât look like a big deal, but it turned out to be deal breaking. I got stopped out at the HOD. Meanwhile it did trade down, made it to 33.4, traded down to VAL (and a couple ticks further), and reversed to finish the day right around todayâs POC.
Misplaying this trade was injury enough, but the insult was I know I would not have been stopped out had I been here with my trade. I would not have left a stop sitting there and certainly not at the wrong location.
But I ainât crying. Other than not playing the rotations, I was dead on and I made the right decisions. I didnât get the reward for my decisions, but I did get the experience.
As for MP and other stuff â¦
Pretty simple today. We opened near PDC after gapping up to 46.2 for an ON-H. ON-L was 43.2 and VAH was 42.6 so those are long opportunities. We had a bunch of singles in N-period yesterday and unconfirmed singles in P-period. We had RE up past IB-H, then traded up to ON-H, bounced between 46.2 and 44.8 (10-day POC and DPOC) a few times before finally breaking through the 44.8 support area. We traded down to IB-L and VAL. There was very minor RE down. No volume to speak of below 42.6 and we rallied back up to close at POC of 44.30. Not a big range day in the least, but plenty of multi-point opportunities:
1. OGF â Sell opening around 45.0
2. ON-L â Long around 43.2
3. OR-H â Short failed OR breakout around 45.0
4. VAL â Long around 42.8
5. ON-H â Short around 46.0
6. DPOC / OR-H â Long around 44.9 (resistance now support)
7. ON-H â Short around 46.0
8. DPOC / OR-H â Long around 44.9
9. ON-H â Short around 46.0 (weakening)
10. VAL / IB-L â Long around 42.6
11. Close 44.3
Obviously, fills, slippage, size, and so forth would be different in each case, but even if you could only nail a couple of the trades, you could probably grab 100% of todayâs range and then some.
Take care and gtty â
omni
omniscient
Guest
i took a break from my journal but not from trading. i now think that was a mistake. i will resume my journal this weekend. i thought it was taking up an excessive amount of time. now i think it was keeping me more in tune with the markets and my desired setups.
anyway, i will focus on three main areas:
1. setups i witnessed
2. setups i missed
3. setups i acted on
this is still not a signal-based journal. listing the setups (even after the fact) helps me cement the pattern recognition i need to successfully trade.
yesterday was unnecessarily painful for me. it was the first down day following three ascending up days. but, i accepted it and have moved on (okay, okay, i'm moving on
).
i hope today was (continues to be) good for ET'ers.
take care, gtty, and have a great weekend -
omni
BTW: i'm convinced that the discipline i was developing through my journal was spilling directly over into my trading. as though its merits need my endorsement, i do recommend a journal - here or anywhere else.
oh, and so far, it looked pretty simple for the ER2 - go long VAL and go to sleep. wake up a few hours later, you've got a 13-point buck on your hood. sweet.
anyway, i will focus on three main areas:
1. setups i witnessed
2. setups i missed
3. setups i acted on
this is still not a signal-based journal. listing the setups (even after the fact) helps me cement the pattern recognition i need to successfully trade.
yesterday was unnecessarily painful for me. it was the first down day following three ascending up days. but, i accepted it and have moved on (okay, okay, i'm moving on
). i hope today was (continues to be) good for ET'ers.
take care, gtty, and have a great weekend -
omni
BTW: i'm convinced that the discipline i was developing through my journal was spilling directly over into my trading. as though its merits need my endorsement, i do recommend a journal - here or anywhere else.
oh, and so far, it looked pretty simple for the ER2 - go long VAL and go to sleep. wake up a few hours later, you've got a 13-point buck on your hood. sweet.
omniscient
Guest
today's charts for the ER2 will be in:
http://charts.dacharts.com/2005-07-08/
usual format - ab{date}_{chart type}
charts are there now.
take care -
omni
BTW: i earlier wrote that a long at VAL was the simple play of the day, but i meant VAH. basically, somewhere around 52 (PDC = 51.3, VAH = 51.9, ONL = 51.4, DDF = 52.4, OR midpoint = 52, PDH = 52.5).
http://charts.dacharts.com/2005-07-08/
usual format - ab{date}_{chart type}
charts are there now.
take care -
omni
BTW: i earlier wrote that a long at VAL was the simple play of the day, but i meant VAH. basically, somewhere around 52 (PDC = 51.3, VAH = 51.9, ONL = 51.4, DDF = 52.4, OR midpoint = 52, PDH = 52.5).
omniscient
Guest
today's charts are located in:
http://charts.dacharts.com/2005-07-11/
hope everyone traded well. i've seen a fair share of ET'ers write that they got churned today. i think the comments are mostly coming from equities traders, but just going off the ER2, i could see how easy it was to churn after about the first hour.
for the day, the ER2 had a nice, plump 10-point range, but from about 10:30 on it was contained to 5-points, and most of the time it was within a 3.5-point range.
i know there were profitable trades and i'm not complaining about range (i never do), i'm just saying after such a forceful start, the day putted along after it caught its breath.
fwiw, i wasn't in it today (making some account changes and so forth), and it may have been a good thing. i went ahead and traded SIM and did really well - until i gave it back during the churn. my shoulda: apply CST and walk away.
i think i simply got too focused on up, up, and away (even though i was shorting the pullbacks) so that i didn't see that the upward momentum was exhausted and we would finish the day with back and forth rotations.
i'll post journal comments later.
take care and gtty -
omni
http://charts.dacharts.com/2005-07-11/
hope everyone traded well. i've seen a fair share of ET'ers write that they got churned today. i think the comments are mostly coming from equities traders, but just going off the ER2, i could see how easy it was to churn after about the first hour.
for the day, the ER2 had a nice, plump 10-point range, but from about 10:30 on it was contained to 5-points, and most of the time it was within a 3.5-point range.
i know there were profitable trades and i'm not complaining about range (i never do), i'm just saying after such a forceful start, the day putted along after it caught its breath.
fwiw, i wasn't in it today (making some account changes and so forth), and it may have been a good thing. i went ahead and traded SIM and did really well - until i gave it back during the churn. my shoulda: apply CST and walk away.
i think i simply got too focused on up, up, and away (even though i was shorting the pullbacks) so that i didn't see that the upward momentum was exhausted and we would finish the day with back and forth rotations.
i'll post journal comments later.
take care and gtty -
omni
omniscient
Guest
today was pretty straightforward, but still enough twists and turns to keep it interesting.
we opened above VAH and above Friday's range. the ER2 popped up to 68.2 and down to 65.0 in the overnight, so there are our initial frames for the day.
first move was to buy VAH (around 65.70, give or take a couple of ticks). even if you bought at open (which was a little above VAH), the heat was never more than a few ticks. the DDF was about 66 and was easy to lean on all day.
the IB made it up to 670 - this was a pretty important psychological number. in fact, while in IB price retraced about 2.5-points almost as soon as it touched the 70 area. okay, it took about 15min but still, it was pretty quick after the breech.
i don't have the data with me, but i think 70.4 was R1 for today. i missed shorting it as a viable trade, but it definitiely worked. interesting that the retrace took it back down to a couple ticks below the ONH before rallying again. if there was a retest of R1, look for the long. this too worked.
again, i don't know for sure, but i think the next resistance level was 75.5 - which turned out to be HOD. short R2? yep.
it took a while to develop, but eventually the HOD / R2 short went down to R1 (now acting as support). there were rotations and HOD retests along the way as well. i played those more than any major moves today. lately i've had some scalps, some minor moves, and at least one good multi-point move - but not today. i think my biggest play was a single point.
anyway, going long from R1 would have pretty much carried the rest of the day. there was some HOD retest action again and some hem-hawing around at the 74.0 area.
the hardest part for me was to hop on the opening upward thrust and then switch gears to the rangey (majority of action was between 74.50 and 71.50) rotational play that dominated most of the day.
i mentioned it earlier, but will repeat it here - i didn't live trade today. i SIM traded while i get some accounts moved around and so forth, but didn't trade from any live account. a couple of things i noticed today:
1. even if it wasn't with money, i didn't want to not trade today - i wanted to trade just to trade
2. after a while i was trading sloppy. to a lesser degree, i have seen some similar trading on my live account. disciplined trading stamina remains a personal project for me.
take care and gtty -
omni
BTW: along with the normal personal projects, i am giving special attention to mode switching. i have to know i don't trade a scalp the same way i would a day trade or the same way i would a rotation and so forth. also, like i mentioned, adapting to a trend day or from a trend day to rotational and vice versa and so on.
oh, also note that i am slowly incorporating $TRIN, $TICK, and $TICKI. i don't exactly trade off of them, but i can see when the market forces might be lining up with or against a given trade.
we opened above VAH and above Friday's range. the ER2 popped up to 68.2 and down to 65.0 in the overnight, so there are our initial frames for the day.
first move was to buy VAH (around 65.70, give or take a couple of ticks). even if you bought at open (which was a little above VAH), the heat was never more than a few ticks. the DDF was about 66 and was easy to lean on all day.
the IB made it up to 670 - this was a pretty important psychological number. in fact, while in IB price retraced about 2.5-points almost as soon as it touched the 70 area. okay, it took about 15min but still, it was pretty quick after the breech.
i don't have the data with me, but i think 70.4 was R1 for today. i missed shorting it as a viable trade, but it definitiely worked. interesting that the retrace took it back down to a couple ticks below the ONH before rallying again. if there was a retest of R1, look for the long. this too worked.
again, i don't know for sure, but i think the next resistance level was 75.5 - which turned out to be HOD. short R2? yep.
it took a while to develop, but eventually the HOD / R2 short went down to R1 (now acting as support). there were rotations and HOD retests along the way as well. i played those more than any major moves today. lately i've had some scalps, some minor moves, and at least one good multi-point move - but not today. i think my biggest play was a single point.
anyway, going long from R1 would have pretty much carried the rest of the day. there was some HOD retest action again and some hem-hawing around at the 74.0 area.
the hardest part for me was to hop on the opening upward thrust and then switch gears to the rangey (majority of action was between 74.50 and 71.50) rotational play that dominated most of the day.
i mentioned it earlier, but will repeat it here - i didn't live trade today. i SIM traded while i get some accounts moved around and so forth, but didn't trade from any live account. a couple of things i noticed today:
1. even if it wasn't with money, i didn't want to not trade today - i wanted to trade just to trade
2. after a while i was trading sloppy. to a lesser degree, i have seen some similar trading on my live account. disciplined trading stamina remains a personal project for me.
take care and gtty -
omni
BTW: along with the normal personal projects, i am giving special attention to mode switching. i have to know i don't trade a scalp the same way i would a day trade or the same way i would a rotation and so forth. also, like i mentioned, adapting to a trend day or from a trend day to rotational and vice versa and so on.
oh, also note that i am slowly incorporating $TRIN, $TICK, and $TICKI. i don't exactly trade off of them, but i can see when the market forces might be lining up with or against a given trade.
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