I do MP by hand during the session for the 2 futures I trade. It keeps me busy if the market is boring (for me ;-) and I also can get a feel of the market environment. So MP helps me to watch the market from another angle and sometimes it provides me with more confirmation for a certain trade.
Market Profile -- who needs it?
- Thread starter tortoise
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I use MP only as a means to know prior to each days trading, where the s/r levels are that I will be looking for market delta based trades from. I have looked at pivots and numerous other possible s/r generators over the years, what I have found for myself is MP levels tend to be concrete and most others are paper mache.
Interesting opinions. Unfortunately, the point is missed that MP is not a trading system. It is a tool to help a trader determine statistically where the bulk of trading is taking place and where value may be. There is nothing specific to the market as far as tools, indicators, etc. MP, like everything else, is something you just learn to use and apply. It takes time. The results of using it depend on the person's understanding of its purpose, limitations and what information it provides and when it is relevant. Making an argument against MP is like arguing against the use of trend ines, T&S, etc. The answer always depends on the perception and the experience of the user.
I use MP extensively across 4 futures products every day. I find that I continue to learn as I put time into it and watch what happens around it. I use the Volume based analysis rather than the TPO type. It just makes more sense to me.
I hope that helps.
I use MP extensively across 4 futures products every day. I find that I continue to learn as I put time into it and watch what happens around it. I use the Volume based analysis rather than the TPO type. It just makes more sense to me.
I hope that helps.
I'm also using the volume instead of TPO.
Some one mentioned Cisco Futures. I'm inclined to agree, I think they do make it just a bit more complicated than necessary.
Like several others here I'm only looking at the POC's and 70% ranges as potential S/R zones. Like yet someone else mentioned, I like the KISS principle too.
You can use MP theory and still keep your trading simple. It just takes time to learn and assimilate it into your trading.
One other thing I'd like to add is that the Cisco Futures website is disorganized and complicated (i.e., difficult to find info), IMO, but the MP content itself is not. The content is excellent. Don Jones provides a trading strategy that is very clear and concrete. You can almost automate it. But he only provides a starting point, you as the trader, need to make it unique by using other key reference points identified through MP. He has done more reasearch on MP and auction market theory than anyone else that I know of. However, keep in mind that you're not going to learn MP over the weekend and start trading it on Monday, like an indicator-based system.
Ok, I'm done defending MP. Good luck trading everybody.
One other thing I'd like to add is that the Cisco Futures website is disorganized and complicated (i.e., difficult to find info), IMO, but the MP content itself is not. The content is excellent. Don Jones provides a trading strategy that is very clear and concrete. You can almost automate it. But he only provides a starting point, you as the trader, need to make it unique by using other key reference points identified through MP. He has done more reasearch on MP and auction market theory than anyone else that I know of. However, keep in mind that you're not going to learn MP over the weekend and start trading it on Monday, like an indicator-based system.
Ok, I'm done defending MP. Good luck trading everybody.
I use MP. It isn't a "system" or an end all approach, far from it. It does require study and I can assure you the time put into it will be rewarded significantly.
Here is what MP allows me to do:
- Identify range extensions.
- Identify trades with inherent "edge", i.e. price movements that spend a short amount of time away from value, and create/trade risk to reward scenarios with inherent edge.
- Identify long term buying/selling.
- Identify balanced versus imbalanced behavior which is a *very* good multiday forecasting method.
Personally, this daily knowledge allows me a strong framework in which to make decisions upon. Subjectivity is removed as a result and I do not question certain developments. That in itself is what makes the insight gained from MP so valuable.
Mike
Here is what MP allows me to do:
- Identify range extensions.
- Identify trades with inherent "edge", i.e. price movements that spend a short amount of time away from value, and create/trade risk to reward scenarios with inherent edge.
- Identify long term buying/selling.
- Identify balanced versus imbalanced behavior which is a *very* good multiday forecasting method.
Personally, this daily knowledge allows me a strong framework in which to make decisions upon. Subjectivity is removed as a result and I do not question certain developments. That in itself is what makes the insight gained from MP so valuable.
Mike