Learning Market Profile

Discussion in 'Technical Analysis' started by bathrobe, Jan 27, 2009.

  1. bathrobe



    In my ongoing quest to learn all I can I have began looking into Market Profile, I currently plot previous days VAH, VAL, and POC on a 30 minute ES chart. A simple observation I have made is when a bar opens outside VAH or VAL and closes inside it usually moves to the other (VAL or VAH), but this is all I have noticed. Often it does not trade in yesterdays range at all.

    I am wondering if there are any free places to learn all about market profile and how to use it intraday on ES.

    As for courses that cost money, I have been looking at www.cisco-futures.com.

    Any help is appreciated.

  2. MJUK


    Try the CBOT website to start with.

    They have a 300 page pdf guide to market profile which is a good introduction.
  3. An excellent book is "Steidlmayer on Markets: Trading With Market Profile." Besides the MP stuff in the book there are lots of other trading nuggets. He is one of the original guys who got it going at the CBOT.
  4. SK0


  5. ammo


  6. andy668


  7. All of the above appear to be valid outlets for information.

    Consider this:

    1. Pick a time frame to profile your market.

    This could be 3 hours, 6 hours, 12 hours, 1 day, 3 days, 20 days, whatever.

    2. Profile your market at the end of one of the above periods.

    Look for value, unfair highs, unfair lows, TPOS etc.

    3. Write all this down in a spreadsheet or document, whatever.

    Now you have a value based reference.

    4. Now decrease the time you picked in step 1 by 1/3.

    If you profiled 12 hours wait 4 hours. Before the next step.

    5. Ask yourself a bunch of questions.

    Did value move lower, higher? Did the market trade balanced, imbalanced? DID I LEARN ANYTHING?

    6. Repeat step 2.

    And loop.

    Last Net High Low Settle Time Date
    @JYH9 1.0171 -0.0061 1.031 1.0143 1.0232 1:00 PM 3/3/2009

    UHIGH -0.0157
    VHIGH -0.0111
    Quad -0.0087
    Value -0.0067
    Quad -0.0051
    VLOW -0.0037
    ULOW 0.0039

    UHIGH 1.0328
    VHIGH 1.0282
    Quad 1.0258
    Value 1.0238
    Quad 1.0222
    VLOW 1.0208
    ULOW 1.0132
    Value down
  8. That's it in a nutshell. Then trade accordingly.
    Works for me.

  9. Below is an example using the 3 hour time frame.

    Profile the ES market from 5:30am to 8:30 am.

    UHIGH 708.25
    VHIGH 705.5
    Quad 703.75
    Value 702
    Quad 699.75
    VLOW 698
    ULOW 697.5

    Check back at 9:30am to see what we learned.
  10. I felt that responsive selling entered the market above the unfair high, however i was unconvinced a move even higher was not out of the question. I did nothing.

    Now from 6:30 am to 9:30 am.

    UHIGH 710.5
    VHIGH 708.75
    Quad 707
    Value 705.25
    Quad 703.25
    VLOW 701.75
    ULOW 697.5

    Anyone willing to take a shot at a response at 1030am?
    #10     Mar 4, 2009