Market Profile based trading

Quote from dcbrown:

How do you define your daily s/r levels?
More...

I use the Auction Market Theory concepts and market generated information that combines price and volume in order to identify major reference areas (High Volume Nodes/Low Volume Nodes, Single Prints, Gaps, POC/vPOC, Value area Highs & Lows).

It means that I use Market profile as graphic representation of how the market distributes price through time. I identify raw rejection/acceptance areas by merging and splitting Daily Market Profiles and use these levels as support/resistance areas. My analysis is based mostly on volume, market structure and ATR. Interim/Major Support Area for me is the price area where exists potential demand. This area should offer support during subsequent selling attempts, at least over the short term. Interim/Major Resistance Area is the price area where exists potential supply.

You can find a lot of useful information that influenced my approach here :
http://www.futurestrader71.com/
http://www.discoverytradinggroup.com/archives/category/videos
 
You must log in or register to reply here.
Back
Top