Trading with Market Profile

[MacroEvent]

Quote from omniscient:

bernard -

i'll let ME address your question directly, but this is a pretty nice collection of MP related material:

http://www.tradingclinic.com/mpref/mp2_1.php

www.cisco-futures.com has a HUGE amount of MP specific material.

fwiw, the CBOT manual, Dalton's book (MOM), and Steidlmayer's book (SOM) have been the most useful to me.

hth

take care

omni




BTW: there is a recent interview with JPS about MP. SFO, TASC, or one of those mags had it a couple of months ago.

Yes Omni has some good choices!

 

[WinSum]

Q: Did opening price match, exceed, or fail to meet the opening call level?

mokwit,

Is there a website that shows the opening call level ?

Trade setup #1a: In a down trending market, when the current session opens below the previous day’s Value Area/VA enter a short trade at the previous day’s lower VA and again at the previous day’s POC/HVL placing a protective stop for both trades 1.5 points above the previous day’s upper VA.

What does HVL stand for ?

Trade setup #2a: In a down trending market, when the current session opens within the previous VA enter a short trade at the upper VA placing a stop 1.5 points above the Day Before Yesterday’s/DBY POC or High Volume Level/HVL (the open price must be at least 2 points below the previous days upper VA)

What does DBY stand for ?


TIA

 

[MacroEvent]

Quote from Bernard111:

MacroEvent,

Which sequence of books, material, articles by the various authors would you suggest to read in order to avoid repetitions (and read old-style corpus of rules/analysis no more used in the current mkts) and to reach a good preparation up-to-date about MP?

Market Profile Books & Articles
Suggested Reading

Steidlmayer on Markets
Peter Steidlmayer

Mind over Markets
Dalton

Technical Analysis of Stock Trends
Robert D. Edwards and John Magee

Technical Analysis and Stock Market Profits
Richard Schabacker, Donald Mack

here you go!

 

[omniscient]

my guesses ...

Quote from WinSum:

What does HVL stand for ?

High Volume Level. basically a volume based perspective for POC.

you can also often see High Value Level, Upper Value Level, Value Area High, Upper Value Area, and so forth interchangeably used. but given the context, i am guessing it is Volume in this case.

What does DBY stand for ?

Day Before Yesterday

hth

take care

omni

 

[WinSum]

Thank you Omni.

 

[guy2]

Here are some charts showing how the market reacted to Market Profile levels over the last week and a half for 4 different symbols: ER2 (AB), YM, ES, and IBM.
Each chart is a 30 minute bar chart with a time template of RTH on it. Days are alternately colored so that you can distinguish which day is which. The 3 horizontal lines are VAH, POC, VAL. If a line is missing this is probably because it overlaps with another.

 

[topgunsoftware]

Here's the Euro using market profile charting on the daily chart. It works for Weekly, Daily and Intraday time frames. You can see areas of support / resistance very clearly.

 

[agin1415]

Short position: I've set a target of 1.1739, just above a Fib target price. Any other opinions? Appears to be under .382 Fib, heading down.

 

[riskarb]

Quote from topgunsoftware:

Here's the Euro using market profile charting on the daily chart. It works for Weekly, Daily and Intraday time frames. You can see areas of support / resistance very clearly.

Amazing chart! Where do I sign up?

 

[topgunsoftware]

Here's some other tools you aren't likely to find anywhere else. The top chart is a Level II display of all the major banks and forex dealers bid/ask prices. Whenever a bank raises its ask we color it green, whenever it lowers its bid its colored red. This tool is very useful for determining if the market is in a choppy phase or if all banks and dealers are marching up/down together. A real confidence booster. The middle chart shows some other original tools. I have the 60 min statistical avg high/low plotted. You can see on most bars that the Euro bounces off of it almost to the pip. I have our squat bar and Trend Reversal indicator plotted on here as well, squat bar is color coded green and red and trend reversal is coded yellow. There are a total of 13 signals on this chart and only one was a loser. Historically though it works about 65 to 80% of the time not 92% like it was today.

The bottom chart show the volume profile on a 240 min chart. I've found this is a great time frame for the bigger picture and lets you see good support/resistance levels intraday. The white,green and red lines are the Pivots. If you are below the white line you should look for shorts and above look to go long. The yellow line is one of our best tools and is the volume weighted avg price. If you are below yesterdays VWAP you should look to go short and above long. Same thing for today's vwap. If the market is above today's VWAP yet below yesterday's VWAP or vice versa then trade more cautiously or take smaller profits.