Market Profile Discussion

Just remember that if you are just starting to learn about the profile and auction theory, make sure you take your time. Spend at least a month or two learning to understand the theory and how to use the profile to interpret it.

One of the big mistakes a lot of my students make is that they want to jump right into trading before they even have a semi-decent handle on what all these bell curves are, and what the placements of each mean in the grand scheme of things.

One of the hardest things, however, is getting from the whole interpreting the theory to doing the trade. I recommend that you trade on the simulator until you can show profits. Most people can't even make money on a simulator let alone the real market. There's no sense in risking your money if you can't even do well in sim. Yet another thing most my kids ignore me on. lol

Take your time and enjoy the learning process. AMT and MP changed my life, and I don't use that phrase lightly. I went from a 70%, roughly even 1 to 1 (slightly better) risk:rewad trader to 85%, roughly 3:2 to 2:1, and that's after 9 years of being a professional.

Enjoy
 
I have a question on MP vs VP. A well respected trader told me that one issue with MP is that you can have a TPO with only 1 contract traded. Whereas with VP it is less prone to this due to the volume compenent. Honestly I have only given both a cursorly look so hopefully someone can shed some light on this potential issue. TIA

Dan
 
Regardless of the number of positions traded at any level for MP, that volume and price level TPO would only be within the context of all other traded price levels and volume at those price levels......there is no "negative" with the type of scenario you mention.


Take the free course intro here to get a fundamental handle on MP ( www.ioamt.com )
 
Hi 5Pillars,

Dandxg is correct if I understand him correctly. A Market Profile and a Volume Profile can generate substantially different value areas, especially in a directional market. Below is an excerpt regarding this issue from the Cisco-Futures website:

"Recent research at CISCO has found that in directional markets the two value areas can differ substantially. One or the other may be correct, while the other will be quite wrong. For example, take a market that opens on it's highs. Sometime within the first hour or so the highest volume - price of the day (point of control) occurs. For the rest of the day price is a lot lower, tracing out a clear bell shaped curve for the TPOs."
 
Quote from 5Pillars:

Regardless of the number of positions traded at any level for MP, that volume and price level TPO would only be within the context of all other traded price levels and volume at those price levels......there is no "negative" with the type of scenario you mention.


Take the free course intro here to get a fundamental handle on MP ( www.ioamt.com )
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Thanks Chris I plan on listening to the IOAMT presentation this Friday.
 
Yes but I don't believe I can discuss that publicly in the forums on ET. I believe that's against the rules.

Quote from flier6:

fbutera101,

Where do you teach? Online?
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Dan,

Aside from volume, TIME is a key ingredient to auction theory and using Market Profile, so it's important that you don't discount the aspect of time. Instead, correlate time with volume to confirm each other. If you have tpo's that aren't confirmed by volume or vice versa, then you can decide on how to handle that.

Quote from dandxg:

I have a question on MP vs VP. A well respected trader told me that one issue with MP is that you can have a TPO with only 1 contract traded. Whereas with VP it is less prone to this due to the volume compenent. Honestly I have only given both a cursorly look so hopefully someone can shed some light on this potential issue. TIA

Dan
More...
 
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