Trading with Market Profile

Thanks very much Guy. This is very helpful.

Another challenge that has been hitting me is neutral days.
I see the R.E and wait for an opportunity to trade the next rotation only to be stopped out by a RE in the opposite direction!
:mad:

Do any of you experienced traders have any pointers on how to detect a neutral day while it is still in the normal V day structure?
any hints?

Many thanks
 
Gambler: IMO (this is untested) you need to look at the charateristic of that RE. If the RE is a spike and the market quickly moves back into the IB then that is an indication that there is no new business beyond the IB on that side and hence a chance for rotation back to the other side and perhaps RE or RE test on other side. If, on the other hand, the price lingers around in that area and we see some volume there then the market is showing us acceptance at these new levels and any rotation back to the other side of the IB may well result in rotation again and back to the initial RE.

Just an idea...
 
Quote from Gambler71:

Do any of you experienced traders have any pointers on how to detect a neutral day while it is still in the normal V day structure?
any hints?
More...
Food for thoughts on Neutral Days:

"I have noticed that if a market is going to unfold into a neutral day, the expansion above or below the [IB] will not exceed "x" number of ticks."

"In the T-Bond, I have noticed that 4 ticks is the outer boundary of expansion that one can lean against with some degree of reliability"

(Steven Hawkins, Steidlmayer on Markets, 2nd ed.)

Another idea: neutral days will tend to appear after a directional move (trend days) in the "development" phase, when the market develops around a "stopping price".

Finally, I noticed that sometimes neutral days regularly show up on the same day of the week++
 
This is a 3 minute chart of the ER2 showing the developing Value Area and POC over the day today (6 May 2005). All the lines are developing lines. Pink is DVAH, cyan is DPOC, and lime is DVAL.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=743779>
 

Attachments

Cumulative profit on singles strategy as I type this is now at $140.

Trade 1: Loss $420
Trade 2: Loss $420
Trade 3: Profit $980
 
3 more trades on Friday:

Trade 4: Profit $980
Trade 5: Profit $80
Trade 6: Loss $420

Cumulative Profit at close on Friday: $780
 
MP for ES for Friday:

[1165.50] HI
[1165.25] HI
[1165.00] GHI
[1164.75] GHI
[1164.50] GHI
[1164.25] GHI
[1164.00] GHI
[1163.75] FGHIJ
[1163.50] FGHIJ
[1163.25] FGHIJ
[1163.00] FGHIJ
[1162.75] FGHJ
[1162.50] DFGHJ [VAH]
[1162.25] DFGJ
[1162.00] DFGJK
[1161.75] DFGJK
[1161.50] DFGJK
[1161.25] DFJK
[1161.00] DFJK
[1160.75] DFJK
[1160.50] DFK
[1160.25] DEFK
[1160.00] DEFK
[1159.75] DEFKL
[1159.50] DEFKL
[1159.25] DEFKL
[1159.00] DEFKL
[1158.75] DEFKL
[1158.50] DEFKL
[1158.25] DEFKL
[1158.00] DEFL
[1157.75] DEFL
[1157.50] DEFLMP
[1157.25] DEFLMP
[1157.00] DEFLMPR
[1156.75] DEFLMPR
[1156.50] DEFLMPQR [POC]
[1156.25] DELMPQR
[1156.00] DELMPQR
[1155.75] ELMPQR
[1155.50] ELMPQR
[1155.25] ELMPQR
[1155.00] LMPQ
[1154.75] MPQ
[1154.50] MPQ
[1154.25] MPQ
[1154.00] MNPQ
[1153.75] MNPQ
[1153.50] MNPQ
[1153.25] MNP
[1153.00] MNP
[1152.75] MNP
[1152.50] MNP [VAL]
[1152.25] NP
[1152.00] NP
[1151.75] NP
[1151.50] NP
[1151.25] NP
[1151.00] NP
[1150.75] NP
[1150.50] NP
[1150.25] NP
[1150.00] NP
[1149.75] NP
[1149.50] NP
[1149.25] NP
[1149.00] NP
[1148.75] N
[1148.50] N
[1148.25] N
[1148.00] N
[1147.75] N
[1147.50] N
[1147.25] N
[1147.00] N
[1146.75] N
 
THEY...WHERE ARE YOU....SNAKE EYES IS LOOKING FOR YOU...LMAO....HOW ARE YOU, IT'S YOUR BUD FROM NY....CALL ME...OR EMAIL MY 1ST AND LAST NAME AT HOTMAIL.COM...
 
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