Registered: Feb 2009
06-07-09 05:49 PM
Thanks for the kind words JW and Xburbx
As regards MP (Market Profile) I like Dalton's work in "Mind over Markets". I also like the nice work they are doing over at IOAMT with volume at profile analysis. From my point of view, these are the basics.
I notice recently that MP numbers are getting front run (both value area high and low). That tells me that more participants are trading these concepts. so I am going to restrict what I say here. I do however want to suggest that any trader who wants to find an edge could do so by simply learning to research how price moves in relation to the "initial balance", and by looking at how the brackets auction inside the balance. I will leave the rest to industrious traders willing to do their own homework.
One concept I will talk about is the way I trade the "confluence" of pivots, moving averages, MP numbers and other significant areas. Generally speaking, what I am looking for is where these price "landmarks" occur either together or nearby each other. I look for price to test once, and then I take a position based on the retest. If we think about it, price tends to act in one of three ways when it hits an important area. It either takes out that price point 1.)to the upside, 2.)to the downside or 3.)it chops around in a range. What I have noticed is that before price "takes out" an area it usually "retests". I use that retest as a signal to get long or short.
Since these areas can be anticipated, one can put in filters and look for price to either take out these areas, or fail. The filters that work well in my opinion include volume (for Esignal) $VOLD and $ADD and one can also use $TICK, $TICKI, PREM AO
Finally I do like MACD but I don't use it by itself and I like to vary the settings depending on the price action that I am trying to capture. Some examples are seen in prior posts.
Best of luck to everyone.