The first hour can be an indicator as to what type of day it is going to be.
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Market Profile used in Trend Trading
- Thread starter MartinD
- Start date
Quote from BundMaster:
The first hour can be an indicator as to what type of day it is going to be.
Thats very interesting... if you get time to post any charts I'd be keen to see.
I've followed MP for a while and found this indicator i've been talking about to provide an interesting context, a different way to look at and analyze trends that I havent come across anywhere before, and it seems really quite effective when combined with a channel breakout...
In conventional MP based on intervals i see that the value area's and peak VAP do provide useful context to the market, but I have not as yet come up with a method of trading it - hence this thread to show what I am doing and solicit input from people who DO use MP profitably
I don't know how to post charts,but if you post some MP charts I will give you my opinion.Quote from MartinD:
Thats very interesting... if you get time to post any charts I'd be keen to see.
I've followed MP for a while and found this indicator i've been talking about to provide an interesting context, a different way to look at and analyze trends that I havent come across anywhere before, and it seems really quite effective when combined with a channel breakout...
In conventional MP based on intervals i see that the value area's and peak VAP do provide useful context to the market, but I have not as yet come up with a method of trading it - hence this thread to show what I am doing and solicit input from people who DO use MP profitably
The chart #4 attached shows the market profile from the morning trend down (just the trend) starting from the high around 9.30 and finishing around 11.30 Am this morning.
Price broke up out of the channel and into the value area to give a long opportunity, with my target being the top of the trend value area.
This was a much bigger move than the first one of this morning that I posted earlier +5.5pts
Price broke up out of the channel and into the value area to give a long opportunity, with my target being the top of the trend value area.
This was a much bigger move than the first one of this morning that I posted earlier +5.5pts
Attachments
And this was the trend change back to long presenting a short opportunity.
The trend up is drawn from when the down trend ended and gave me the previous long opportunity... obviously creating a new up trend. Price broke the channel and into value area for a new short opportunity - this time +5.75pts to the bottom of value area
I was now watching this new down trend to see if another long opportunity will arise - these three documented trades today have netted +13.75pts so far in easily identifiable breaks into the value area boundaries.
The trend up is drawn from when the down trend ended and gave me the previous long opportunity... obviously creating a new up trend. Price broke the channel and into value area for a new short opportunity - this time +5.75pts to the bottom of value area
I was now watching this new down trend to see if another long opportunity will arise - these three documented trades today have netted +13.75pts so far in easily identifiable breaks into the value area boundaries.
Attachments
This was the trend change back to long from short - I jumped in on the breakout from the channel into the trend value area but price didnt quite make it to the other side of value area.
I had been hoping price would be supported by the MA and the price of 1083.75 which was the peak volume price level, but price motored down through it and I was stopped at 83.00
I had been hoping price would be supported by the MA and the price of 1083.75 which was the peak volume price level, but price motored down through it and I was stopped at 83.00