Can market profile help scalpers?

H

hanzahar

I'm just wondering if market profile is able to help scalpers...

ok I'm a newbie in market profile...

I've a 1 second scalping strategy and I was wondering if market profile is capable to help me make decisions

what I know is market profile works on 30mins chart

is it possible to work in smaller timeframe say 1min or 5 min chart?

hope some experience trader can share their views

many thanks
 
mp gives you a picture of the market ,as a scalper it lets you know 3 or 4 times a day a point where you can get in for a few points profit,combined with trendlines,it will define a range and let you know where not to trade which is very profitable as it helps you keep your winnings,if you hand chart it in one point increments,you will learn the weaving patterns of an entire days intraday movements,this may be the fastest way to grasp the way the market moves because by hand charting you are forced to watch every move and you become part of the market and put it on paper,sort of learning by osmossis but it is a very fast way to learn
 
I am also totally new to market profile(one month in). I can see 2 uses for market profile/Auction Market theory. One is to determine the intraday s/r and then use market delta to scalp around those areas and another method would be to use the long term volume distribution to swing trade.

I know you are focusing on scalping so I will keep it on topic. For scalpnig theory wise, It would make sense to use initiated selling/buying at s/r levels to make a quick scalp throughout the day.

The options to me:
1. Successful BO through s/r

2. FBO, price BO through s/r but then not enough volume to sustain the BO and price comes back through the same s/r level.

3. Price approaches and stops at the s/r level and then bounces away back to where it came from. Most likely mean reversion.

I am sure there are other variations but this is what I have gathered so far. What would be cool would be to see what option plays out the most often and then create a profit taking strategy to capitalize.

Also, as I said, I am totally new to MP and MD and I am hoping MD can help discern what happens at these levels and give better probablities as to what may play out.

anyway,I plan on putting in a LOT more screen time as I really have not been able to get it to click yet.......when i do, I will give feedback

Hope this helps as to how I am approaching(still all theory for me) using MP and MD to scalp.
 
Quote from tradingbug:

I am also totally new to market profile(one month in). I can see 2 uses for market profile/Auction Market theory. One is to determine the intraday s/r and then use market delta to scalp around those areas and another method would be to use the long term volume distribution to swing trade.

I know you are focusing on scalping so I will keep it on topic. For scalpnig theory wise, It would make sense to use initiated selling/buying at s/r levels to make a quick scalp throughout the day.

The options to me:
1. Successful BO through s/r

2. FBO, price BO through s/r but then not enough volume to sustain the BO and price comes back through the same s/r level.

3. Price approaches and stops at the s/r level and then bounces away back to where it came from. Most likely mean reversion.

I am sure there are other variations but this is what I have gathered so far. What would be cool would be to see what option plays out the most often and then create a profit taking strategy to capitalize.

Also, as I said, I am totally new to MP and MD and I am hoping MD can help discern what happens at these levels and give better probablities as to what may play out.

anyway,I plan on putting in a LOT more screen time as I really have not been able to get it to click yet.......when i do, I will give feedback

Hope this helps as to how I am approaching(still all theory for me) using MP and MD to scalp.
More...

Correct me if I'm wrong, but aren't Market Profile and Market Delta two different things? I'm sure of it. Market Delta is a similar but different product.

In any event, which software package are folks using for Market Profile?

Regards,

JP
 
Quote from johnpinochet:

Correct me if I'm wrong, but aren't Market Profile and Market Delta two different things? I'm sure of it. Market Delta is a similar but different product.

In any event, which software package are folks using for Market Profile?

Regards,

JP
More...

I have settled on Linnsoft.com for both MP and MD. NinjaTrader also has a good deal for MP from a third party developer.
 
What does BO and FBO stand for?

Quote from tradingbug:

I am also totally new to market profile(one month in). I can see 2 uses for market profile/Auction Market theory. One is to determine the intraday s/r and then use market delta to scalp around those areas and another method would be to use the long term volume distribution to swing trade.

I know you are focusing on scalping so I will keep it on topic. For scalpnig theory wise, It would make sense to use initiated selling/buying at s/r levels to make a quick scalp throughout the day.

The options to me:
1. Successful BO through s/r

2. FBO, price BO through s/r but then not enough volume to sustain the BO and price comes back through the same s/r level.

3. Price approaches and stops at the s/r level and then bounces away back to where it came from. Most likely mean reversion.

I am sure there are other variations but this is what I have gathered so far. What would be cool would be to see what option plays out the most often and then create a profit taking strategy to capitalize.

Also, as I said, I am totally new to MP and MD and I am hoping MD can help discern what happens at these levels and give better probablities as to what may play out.

anyway,I plan on putting in a LOT more screen time as I really have not been able to get it to click yet.......when i do, I will give feedback

Hope this helps as to how I am approaching(still all theory for me) using MP and MD to scalp.
More...
 
I trade the YM...believe it or not, it helped me moving from a 2hr 1minute chart to a 24 hour 10 minute chart...the 1 minute chart was too "hyper" for me and made me exit and enter on wrong notes...the 24/10 helps me "see better"
 
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