Trading with Market Profile

Quote from spreadem:

I agree that those high values were rejected, but, how do you know that those highs won't be retested on Monday.
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Well, I don't, but the intraday Market Profile certainly indicated that the downward range extension carried volume with it, pulling the intraday POC with it. I just think its worth keeping both the short and long term frame in mind, at some point it will revert back to the mean.

For Friday:
UVA: 1003.5
LVA: 992
POC: 999.25
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If a 30minute bar closes and remains closed in the VA, we may well indeed see a retest of the high.
 
For a market that had gone parabolic over the last couple of weeks, I find it hard to believe that we won't at least have a feeble attempt at a rally back to 1005 on the S&P futures.
 
Hello everybody,

after having studied market profile for a few months, I'm aware it gives an edge helping the trader understanding what's happening in the markets, but I have troubles with identifying precisely entries and exits.

What do you think would be a good method that could confirm the validity of support/resistence levels?

Thank you for your attention!

Gordon
 
Gordon G. - Use the 30 min bars for support and resistance - that's what the large MP traders are using and it works. Also, all the normal intraday MP tools that help you identify early on the day type are important. These include rotation factor, mean price, midpoint, volume per period and singe tpos, just to name a few.
 
Quote from Gordon G.:

Thank you very much mBear!

Do you think the type of opening is still a usefully tool in the 24h markets?

Regards
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I'm not sure exactly to what you are referring in "type of opening" since there are so many ways to view the opening. Some examples include, where the market opens in relation to the previous day session close, the previous day's value area, and its poc.

The lowest risk mp plays are derived from viewing the markets behavior after the initial balance is settled.

And yes, I think that for the s&p and nasdaq 100 futures, the day session numbers are the only ones with significance, especially since mp day trading relies heavily on the use of the initial balance. Night session volume is so light, it has little significance for mp day trading. When looking at the value area for longer periods, then the entire 24 hour range may be more significant. However, when looking at value for these longer time periods, I prefer to look at the spy and the nqy day session numbers only.

By the way for a good example of the use of 30 minute bars, review the 30 minute chart for Wed 10-1-03 on the esz3 contract. After A period, the support on the 30 minute bar held every time. Profitable day trades could be executed simply by buying at every pullback to the low of the previous 30 minute bar.
 
Quote from prox:



A gap overnight can be considered "one big long bar" , like you'll see in tick charts. I think the mass majority of people only pay attention to regular hours, so it shouldn't be an issue.
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Gordon, I think this previous post on the subject is a useful way of looking at after hours trading.
 
I understand the Value area in the Market profile and the POC. But I would appreciate it if you would explain the rotation factor, the mean price and the volume per period and the "singe tpos".

I have also found from my own trading that the Globex High and Globex Low are key numbers that often hold as support or resistance during the day session.
 
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