The pink or blue square is the equivalent of seeing brokers put their hands down at their sides. It tells you that interest in buying or selling has dried up at this level and it means the market will do one of two things: It will pause and continue moving in itâs current direction after a rest or after pausing, retrace its recent move by trading in the opposite direction. This helps you avoid those situations where you could get steamrolled.
The 3-2-1 Approach: A Simplified Method for Trading Any Market
- Thread starter bthomas
- Start date
Conclusion
Three rules. Two patterns. One indicator. All based on the Market Profile and keenly focused on volume movement in conjunction with the long-term distribution. The 3-2-1 approach eliminates much of the noise and most of the variables currently used in your approach to trading. You can make better trading decisions, and more quickly too. With the right tools and information, you can trash most of your trading checklist and focus on the two or three important factors that actually drive the markets. This can only improve your decision-making and your trading performance.
Three rules. Two patterns. One indicator. All based on the Market Profile and keenly focused on volume movement in conjunction with the long-term distribution. The 3-2-1 approach eliminates much of the noise and most of the variables currently used in your approach to trading. You can make better trading decisions, and more quickly too. With the right tools and information, you can trash most of your trading checklist and focus on the two or three important factors that actually drive the markets. This can only improve your decision-making and your trading performance.
Full Disclosure
This thread will be updated primarily by Doug Zalesky and Charles Cochran. Doug is a Managing Partner of Tradmaven Group LLC and has been a trader in the CBOT bond pit for 25 years. Charles is a partner in the Trademaven Inside Edge, the educational arm of Trademaven Group LLC and has been in the securities and futures industry for nearly 30 years. He has been a broker, analyst, CTA, Independent IB, publisher and developer of software programs. Since 1997 he has taught Market Profile classes at the CME, CBOT, and NYMEX exchanges.
Actual charts and results will be posted as they were called in the TIE Traders Room Verification will be simple. A week trial membership will be available to the room for those who request it. Just match the calls to what was posted in the room.
The reason weâre doing this is simple. We believe we can âdo well by doing good.â As has been extensively reported, most futures traders fail. We believe the reason for this is that most traders donât know how to trade like the pros. So weâre bringing in the pros to help.
The 3-2-1 methodology is pretty straight forward, but it does take time and dedication to master as you might suspect. But for those who are willing to do their homework, the prize is freedom, and the lifestyle that goes along with it.
This thread will be updated primarily by Doug Zalesky and Charles Cochran. Doug is a Managing Partner of Tradmaven Group LLC and has been a trader in the CBOT bond pit for 25 years. Charles is a partner in the Trademaven Inside Edge, the educational arm of Trademaven Group LLC and has been in the securities and futures industry for nearly 30 years. He has been a broker, analyst, CTA, Independent IB, publisher and developer of software programs. Since 1997 he has taught Market Profile classes at the CME, CBOT, and NYMEX exchanges.
Actual charts and results will be posted as they were called in the TIE Traders Room Verification will be simple. A week trial membership will be available to the room for those who request it. Just match the calls to what was posted in the room.
The reason weâre doing this is simple. We believe we can âdo well by doing good.â As has been extensively reported, most futures traders fail. We believe the reason for this is that most traders donât know how to trade like the pros. So weâre bringing in the pros to help.
The 3-2-1 methodology is pretty straight forward, but it does take time and dedication to master as you might suspect. But for those who are willing to do their homework, the prize is freedom, and the lifestyle that goes along with it.
I know of 2 traders that use MP, and both are profitable.
I'm reading as much as I can and I've saved your website.
Thanks for posting this thread.
Ian
I'm reading as much as I can and I've saved your website.
Thanks for posting this thread.
Ian
A hedged or commercial market is one that contains a high percentage of participants who are hedgers or actual producers & users of a commodity or financial instrument.
A farmer or a grain elevator operator is an example of a producer. A baker or pasta maker is an example of a user. Producers and users must hedge their exposure of a cash commodity (like Wheat) in the futures market.
Physical commodities and financial intruments (like US Treasury Bonds) have a high component of hedgers and users. Unlike the S&P index which has a high component of pure speculators.
A market that contains a 50% hedging component and a 50% speculative component is a better market for a trader to participate in.
Bond Trading Levels for 5/19/08
Rule 1 says low volume areas are support and resistance and should be traded as such. Note how the market stopped within 2 ticks of the low volume area at 116.27.
Rule 2 says high volume areas are support and resistance the first time touched. As the market came off 116.29 it was attracted to 116.10, the high volume area.
Charles Cochran's analysis was posted after Friday's market close for Monday's trading.
Rule 1 says low volume areas are support and resistance and should be traded as such. Note how the market stopped within 2 ticks of the low volume area at 116.27.
Rule 2 says high volume areas are support and resistance the first time touched. As the market came off 116.29 it was attracted to 116.10, the high volume area.
Charles Cochran's analysis was posted after Friday's market close for Monday's trading.
The width of the bar represents the volume traded on that bar relative to all the other bars on the screen.
The color coding parallels the market profile distribution. Yellow is the value area (68% of the traded volume), the green line is the volume weighted mean, the magenta line is the mode (the greatest volume traded on that bar), blue is the unfair high, and red is the unfair low.
The volume histogram at the bottom of the chart is the cumulative volume traded throughout the day.
The color coding parallels the market profile distribution. Yellow is the value area (68% of the traded volume), the green line is the volume weighted mean, the magenta line is the mode (the greatest volume traded on that bar), blue is the unfair high, and red is the unfair low.
The volume histogram at the bottom of the chart is the cumulative volume traded throughout the day.
lol