Market Profile Plus by bolter

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Bolter,

Great thread. I found market profile over a year ago and it changed my trading for the better in the space of a few weeks. The main benefit was in revealing new set-ups I would have perviously ignored due to a lack of understanding.

Per example, value area completions are now becoming one of my most consistent setups - where as before MP I was mainly taking directional trades.

Anyway, good trading to you and keep up the excellent thread.

Regards,

Mike

P.S. You are giving away too many secrets :D
 
hey bolter


I have a question about something Market Profile related. On another forum I found a spreadsheet to calculate each bracket's "rotation factor". However, I've scoured the web and can't find a straight answer as to what different values for a rotation factor might indicate.

thanks!
 
kashbg,
Do you thing those resulting volumes correspond with your magic numbers.
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That is exactly correct - they should be essentially the same. There could be a minor difference due to construction (I use 1 minute data, I have no idea what interval they use), but this should be trivial. I think you can see the value in exporting the data and doing the work yourself.
bolter
 
Hi Mike805,
Nice to meet another MP convert.
...value area completions are now becoming one of my most consistent setups...
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I'm not familiar with the conept of value area completion. I could hazard a guess but can you explain it for me? Obviously I need to brush up on my MP theory.
You are giving away too many secrets.
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I hear what you're saying, but the beauty of having a methodolgy that is built upon the basic fundamentals of how markets operate means that you never have to worry about it being arb'ed away, or disappearing overnight because of a slight shift in market behaviour. At least that's my theory.

bolter
 
Hi Master,
On another forum I found a spreadsheet to calculate each bracket's "rotation factor".
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From memory this was a concept introduced by Dalton. My copy is out on loan at the moment, so I can't confirm that. I'm sure if you post the spreadsheet somebody here will be able to help you out.

bolter
 
Rotation Factor as described by Dalton p.113 as

At any point in time within the day, segmenting the Profile into half-hour auctions helps to determine which other timeframe participant is currently in control....If the high of the current time period is higher than the previous period's high, then the rotation is given a +1. If the high is lower than the previous period's high, then it is assigned a -1. Similarly, if a time period's low is higher than the pervious period's low, then a value of +1 is added. An action bottom that is lower than the pervious period's low received a -1. And, if both periods highs or lows come out even, then no value, or 0 is assigned.
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In the example Dalton shows a day with 12 30 minute periods.
Each auction as a 0,1 or -1 as a 'top value' and a 0, 1 or -1 as 'bottom value'
The sum of all Top Values and Bottom Values = Overall Rotation Factor.

Good luck...
 
So what I gather from that explanation is that it's a way of figuring out how strong the current trend is and possibly spotting reversals when the overall rotation starts to decrease. (if I'm totally out to lunch please let me know).

Here's the template anyway for anyone interested.
 

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Here's the recap from Friday's action.

ES Chart
a>


The pullback I was looking for at the open blew right through my levels, eventually halting at 1286, taking my stop with it. Actually I noticed this level during the previous days trading. When we first hit it the market went nuts. Obviously it was somebodys radar screen. Got in later on the pullback to the POC, and basic finished flat for the day on the ES.

If you look at the MP below Friday was a balanced day without a range extension. The IB was the high and low of the day. You don't see that very often. The good news is that this action confirms the range extension from Thursday (ie: the breakouts). We should be clear to move higher.

a>


YM Chart
a>


Got a better entry off the UVA on the YM, but the trade hardly set the world on fire. My 100 point target looked pretty stupid. and I had to settle for less than half that.

bolter
 
Quote from bolter:

[...]
Got a better entry off the UVA on the YM, but the trade hardly set the world on fire. My 100 point target looked pretty stupid. and I had to settle for less than half that.

bolter
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:) ... not surprising since Friday was a half-day for the treasuries and was the start of a long weekend here in the US (president's day). It looks like you got the bulk of the move. Don't spend it all in one place.
 
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