Trading with Market Profile
- Thread starter They
- Start date
y and z are usually used to indicate the first 2 half hour trading periods of each day (TPO). These first 2 periods , y & z, are what is known as the initial balance (IB). The reason they use lower case y and z is because they stand out from the rest of the letters and therefore make the IB easier to see.
FYI - extract from the CBOT's Market Profile Handbook:
"...Since then, the CBOT has changed the letters indicating time.
In January 1990-in order to accommodate 24-hour markets-the
CBOT assigned a character to each half-hour trading period on a
24-hour basis. Half-hour periods from midnight to noon are
represented by capital letters A through X. Half-hour periods from
noon to midnight are represented by small letters a through x.
The day session for U.S. Treasury bond futures now resumes at 7:20 a.m. in "O" period and ends at 2 p.m. in "d" period. See page 46 for more information..."
Interestingly, according to the symbology documented in the CBOT's Market Profile Handbook, "y" and "z" aren't supposed to be used at all. Also, it seems that "Market Profile" is a registered trademark of CBOT.
"...Since then, the CBOT has changed the letters indicating time.
In January 1990-in order to accommodate 24-hour markets-the
CBOT assigned a character to each half-hour trading period on a
24-hour basis. Half-hour periods from midnight to noon are
represented by capital letters A through X. Half-hour periods from
noon to midnight are represented by small letters a through x.
The day session for U.S. Treasury bond futures now resumes at 7:20 a.m. in "O" period and ends at 2 p.m. in "d" period. See page 46 for more information..."
Interestingly, according to the symbology documented in the CBOT's Market Profile Handbook, "y" and "z" aren't supposed to be used at all. Also, it seems that "Market Profile" is a registered trademark of CBOT.
Hello,
I am using Investor/RT and reading this thread. I opened up a MP chart and specified 5 days ending 0 days back. Minutes per letter=30min.
I get an interesting chart showing a long line of letters that bunch up in a curve type shape. I get 5 distinct rows separating the days all showing varying place where the curve is forming. Investor /RT does all this automatically for me and does a rather nice job.
From this thread I notice that UVL, POC, LVL is discussed. Now how do I calculate the UVL and LVL. I think it is 70% of something. It was mentioned to count the letters? what letters? Horizontally or vertically? I am confused.
Now, lets say at the open today a new lower level starts forming......and all the other levels are above. We are in the first half hour of the open....Do I watch it go to it's previous day POC? Will it be attracted to that level? On its way up if it breaks through the LVL (70% of something) of the previous day to I go long with a POC target and a 2 point stop? Then do I just trade each level like this...kinda a support and resistance play?
Michael B.
P.S. I know you have explained this in the thread...I just do not get it yet.
Please do not to forget to answer the lvl and uvl 70% calculations.
I am using Investor/RT and reading this thread. I opened up a MP chart and specified 5 days ending 0 days back. Minutes per letter=30min.
I get an interesting chart showing a long line of letters that bunch up in a curve type shape. I get 5 distinct rows separating the days all showing varying place where the curve is forming. Investor /RT does all this automatically for me and does a rather nice job.
From this thread I notice that UVL, POC, LVL is discussed. Now how do I calculate the UVL and LVL. I think it is 70% of something. It was mentioned to count the letters? what letters? Horizontally or vertically? I am confused.
Now, lets say at the open today a new lower level starts forming......and all the other levels are above. We are in the first half hour of the open....Do I watch it go to it's previous day POC? Will it be attracted to that level? On its way up if it breaks through the LVL (70% of something) of the previous day to I go long with a POC target and a 2 point stop? Then do I just trade each level like this...kinda a support and resistance play?
Michael B.
P.S. I know you have explained this in the thread...I just do not get it yet.
Please do not to forget to answer the lvl and uvl 70% calculations.
The markets I trade are heavily influenced by the POC.
In fact it's a pretty good trade risk/reward wise if a 5 min. bar starts touching the POC and then the next 5 min bar breaks away from the farthest out point of the first 5 min bar - use two ticks away if you want a really safe trade. I picture this as someone is doing something other than than the market makers who tend to keep prices around the POC/5 min. bar range.
Conversely if I'm fading a market move from an extreme point during the day I'll often target the POC or 2-4 ticks on my side of the POC as an exit/re-assessement point. On a volatile day it seems as though someone will jump in and reverese course before prices reach the POC.
I'm no way an expert on this and haven't read any of the books on the subject. However, in my limited expereince and knowledge I've seen a jump in profitablity using some of the most basic principles.
In fact it's a pretty good trade risk/reward wise if a 5 min. bar starts touching the POC and then the next 5 min bar breaks away from the farthest out point of the first 5 min bar - use two ticks away if you want a really safe trade. I picture this as someone is doing something other than than the market makers who tend to keep prices around the POC/5 min. bar range.
Conversely if I'm fading a market move from an extreme point during the day I'll often target the POC or 2-4 ticks on my side of the POC as an exit/re-assessement point. On a volatile day it seems as though someone will jump in and reverese course before prices reach the POC.
I'm no way an expert on this and haven't read any of the books on the subject. However, in my limited expereince and knowledge I've seen a jump in profitablity using some of the most basic principles.