Trading with Market Profile
- Thread starter They
- Start date
Guys,
I've attached a Volume Profile Study for today's Dax.
This is the free EFS study available at esignal central. It's a 30 minute chart.
The POC is the purple line at the top. The market sold from the Upper Value Area to within one point of the lower value area, then rebounded back to the mid point. I'm not sure what VWAP is. Can anyone tell me?
Unfortunatly, this free study is very messy, and takes up plenty of space on the chart. However it gave some excellent signals. Also it doesn't tell you over what period it's been calculated.
Runningbear
I've attached a Volume Profile Study for today's Dax.
This is the free EFS study available at esignal central. It's a 30 minute chart.
The POC is the purple line at the top. The market sold from the Upper Value Area to within one point of the lower value area, then rebounded back to the mid point. I'm not sure what VWAP is. Can anyone tell me?
Unfortunatly, this free study is very messy, and takes up plenty of space on the chart. However it gave some excellent signals. Also it doesn't tell you over what period it's been calculated.
Runningbear
Or anyone else who cares to take a crack at answering these.
1) Is it logical to ASSume that previous days Value area Highs. lows and POC MAY be good support and resistance numbers? Especially if they haven't been traded back to yet. I am not talking just about the day preceeding the current trading day. For example from Tuesdays trading we had a Value area of 1126 - 1121.....Would 1121 be a possible good support number...? Obviously since we had two VA highs that happened at 1126 and 1126.5 this seems to be a good support number based on todays trading( Thursday 4/1/01). Would the POC that falls between 1121 and 1126 be a possible support point? Ok I am confusing myself now,,,,lol
In english...do previously untested Value area highs, lows and POC's act as possible support and resist areas? This leads me to question two.....
2) I noticed that some post 5, 10,20 day VA's and Poc's...I again ASSume this is what makes up a Demand Overlay curve. The question is how do you know which are the most valid to use? Are the previous days VA high and low more important to a day trader than numbers generated from the 5, 10 or 20 day profile? How do you know which to use?
Ok so here is some more ramblings..
3)How do you know if is best to use the Volume -at-Price studies or the Value area numbers...as you know these aren't always the same. Again if using the VAP studies than the above questions apply...i.e. are 5 day VAP prices more useful than the previous days...what about the 10 day or 20 day...yikes...what is a trader to do. I know I've asked a lot here and I want to thank everyone who has taken part in this fascinating thread. Any and all responses are appreciated.
BDM
1) Is it logical to ASSume that previous days Value area Highs. lows and POC MAY be good support and resistance numbers? Especially if they haven't been traded back to yet. I am not talking just about the day preceeding the current trading day. For example from Tuesdays trading we had a Value area of 1126 - 1121.....Would 1121 be a possible good support number...? Obviously since we had two VA highs that happened at 1126 and 1126.5 this seems to be a good support number based on todays trading( Thursday 4/1/01). Would the POC that falls between 1121 and 1126 be a possible support point? Ok I am confusing myself now,,,,lol
In english...do previously untested Value area highs, lows and POC's act as possible support and resist areas? This leads me to question two.....
2) I noticed that some post 5, 10,20 day VA's and Poc's...I again ASSume this is what makes up a Demand Overlay curve. The question is how do you know which are the most valid to use? Are the previous days VA high and low more important to a day trader than numbers generated from the 5, 10 or 20 day profile? How do you know which to use?
Ok so here is some more ramblings..
3)How do you know if is best to use the Volume -at-Price studies or the Value area numbers...as you know these aren't always the same. Again if using the VAP studies than the above questions apply...i.e. are 5 day VAP prices more useful than the previous days...what about the 10 day or 20 day...yikes...what is a trader to do. I know I've asked a lot here and I want to thank everyone who has taken part in this fascinating thread. Any and all responses are appreciated.
BDM
I use yesterday's UVA , LVA to trade off of
I have not found VA's from many days prior to provide reliable sup/res however they obviously merge in to overlays
Obviously POCs from many days prior will also show up in a multiday overlay (5,10, 20)
As far as what overlay to use, it will depend on your style(scalp, day, swing) of trading - the basic principle for trend trading is if you are above volume look to be long and if you are below volume look to be short. For revert to mean trading you need to learn how far the market you are trading generally gets from its mean and then scale in accordingly
Trading off of sup/res or "line in the sand" trading is not for everybody
I have not found VA's from many days prior to provide reliable sup/res however they obviously merge in to overlays
Obviously POCs from many days prior will also show up in a multiday overlay (5,10, 20)
As far as what overlay to use, it will depend on your style(scalp, day, swing) of trading - the basic principle for trend trading is if you are above volume look to be long and if you are below volume look to be short. For revert to mean trading you need to learn how far the market you are trading generally gets from its mean and then scale in accordingly
Trading off of sup/res or "line in the sand" trading is not for everybody
They,
Does you study using yesterdays UVA, LVO POC etc also incorporate the volume traded during the current day? How do you incorporate the current days volume when trading?
Runningbear
Does you study using yesterdays UVA, LVO POC etc also incorporate the volume traded during the current day? How do you incorporate the current days volume when trading?
Runningbear
I am currently trading four systems (Two overnights and two daytrades)
None of them consider the current day's volume. However, I am working on an intraday system based on Chris Kryza's VolumeProfileRealTimeTickData1.efs and BVP-HighVolume.EFS
I guess I am getting old and prefer the slower moving stuff
None of them consider the current day's volume. However, I am working on an intraday system based on Chris Kryza's VolumeProfileRealTimeTickData1.efs and BVP-HighVolume.EFS
I guess I am getting old and prefer the slower moving stuff
You folks may have covered this somewhere in the Market Profile thread but I was wondering which numbers are the best to use for the Value area for the emini S&P? I have been following Mohan at daytraderrsaction and Ann Tedesco ( off the charts) and each day there numbers are different. I know about the different ways to calculate the VA but which method really gives the Best numbers....? Somedays Mohans numbers are great and Other days Ann's numbers seem more accurate...what is a trader to do...anyone really know the answer besides not using Market Profile?
Thanks for your time
Thanks for your time
Pitbull,
Your falling into the trap of thinking you can find something that works all the time. That doesn't exist. There are several ways to calculate the value area. You can base it on time (tpo's) or volume. YOu can use 68%, 70% or some other number to your liking. You can also use auction points, that is, the b/o level of the first hour's (initial balance) range. And then you can adjust these levels based on proximity to floor pivots, chart s/r, etc. It seems that consistancy of use is more important than which method. Hope this helps.
Your falling into the trap of thinking you can find something that works all the time. That doesn't exist. There are several ways to calculate the value area. You can base it on time (tpo's) or volume. YOu can use 68%, 70% or some other number to your liking. You can also use auction points, that is, the b/o level of the first hour's (initial balance) range. And then you can adjust these levels based on proximity to floor pivots, chart s/r, etc. It seems that consistancy of use is more important than which method. Hope this helps.