Long term MP profiles in the S&P

Discussion in 'Technical Analysis' started by brkmarket, Feb 24, 2008.

  1. I'm hoping some of you can shed some light on how to "Read" and trade longer term market profiles. Specifically the S&P market. I have a fairly good understanding of MP as a day trader but I've always found the longer term profiles a bit challenging.

    Some use 5, 10 and 20 profiles. Some use weekly and monthly etc....I guess the real point of this thread is to try and hash out what really works on a higher time frame and how that can actually be used to trade. Perhaps we can try and remove some of the subjectivity with these longer profiles.

    With that said I have attached a chart of the S&P from February 6th forward. This represents the consolidation that has recently transpired. This has been chosen by me ( the subjective part) .

    You can see the "Bulges" at the 1358, 1351, 1341 and 1332 area. I have on the chart the Value area ( based on Volume and TPO's), These lines come in at the 1362 - 1364 area and 1334 - 1335 area. The market is trading in the overnight up at the upper zone as I type in the overnight and I'm looking to get short for the 1358 retest at least.

    I want to know what most would do with this ( if anything....lol).

    A) What would be the non-subjective way to look at all this ?

    B) How do we know when this consolidation has broken out? Do some use a close beyond the consolidation as a trigger? Daily close , weekly close, 30 minute..other time frame???

    C) Should we expect a "bell curve " to develop at lower prices ( Filling in this distribution a bit more) before a breakout can happen....

    Perhaps it is just not possible to remove most of the subjectivity from MP analysis. We can try!! Thanks for the help!!

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