I first watched this video 2 years ago. All the concepts in this video made sense but i was not sure as to how to execute the trade. Selling or buying tail can be 100 ticks long and then next day go up another 50 ticks above previous days single print high and so on. Traders see it everyday Crude oil can go above low volume nodes at the highs ( if i want a short position) by 100 ticks before pulling back. How does one trade it? Just going long at low volume nodes ( single prints) will get a day trader in trouble as getting long at A up level without keeping other layers of method in front and center for CONTEXT will. I use combination of ACD and Volume bars to identify trade location for executing a trade. http://youtu.be/AQNYjG5D2T4
NOTE: Not sure why link is showing up as broke. Type Peter Steidlmayer in search tab of CME and it will take you to the link.
I have not bought a market profile educational course, indicator package etc. from anyone and have no PLANS to do so. I do like to listen to various presenters to keep refining my understanding of the concepts. I do not take trades based of Market/Volume profile. To me , it is just another way to look at data. Once price moves from VAH, i expect it to go to POC and from POC to either back up to VAH or go down to VAL and so on. http://youtu.be/GTxw3YRwpF4
03-02-2012 Price behavior from one POC to the next. CORRECTION= Chart should read - below 03/02 POC of 108.40, 107 POC of 02/29 and 03/01 becomes target.
short 106.46. cover 106.20 not a good trade location . So scalp =26. After A down was confirmed. Couple of more shorts @ 106.48. 2 for gains of 50 ticks for cover around 106.24. On third one got stopped out at 106.61. -13 Now short from 106.84 into euro close. Done for now as we have lunch slow time. Will see what happens around 1 .20 pm. This is the last screen shot of my P&L, i will post as i keep on getting questions about my entries and exits. My method has RULES but it is discretionary. I am not trading a black box system.
short of 106.84 . got stopped out 107.02. -18 ticks. Above 107.40, CL can run to 108. Looking for shorts as we have A down.
03-05-2012 short 106.93. cover 106.62 +34 and cover 106.46 +50. I am short again from 106.91 with stop loss at 107.01. Nothing magical about stop loss. i am not worried about 11 ticks loss, i am protecting myself in case CL blasts through 107.20 and 107.40 with FORCE and form a C up. I am always very scared of C up when I am short on A down because it means lot of traders got trapped short and CL can run on that.
out 106.68. +23. 29 minutes of anxiety for 23 ticks. and if 106.50 breaks on VOLUME, i will be asking myself why i did not hold for target? That's the life of a small retail trader like myself.