OK THIS is the PM I sent to my "brother in arms" tntneo and he suggested I post it to forum. Any opps. fire away. Cheers All, Alex Dear Neo, A couple of things : VALUE AREA Technique - Have you ever heard about it? What the heck is it? Also to go with it Balanced open, Imbalanced to the upside/downside ? SUPPORT/RESISTANCE - suposedly in futs they arent previous highs/lows??? I always thought thats the way to find them, no!? What do they mean by this? Also, what is this???? THX and good trading Alex
Couple other important points besides H/L are previous days' close and current days open. I doubt there's anything with 80% accuracy, maybe 54%.
so now I can answer some more. a usual snake oil stuff (as it is referred to on ET). it is holy graily (oily gravy ?). anyway, I think you are still looking for secrets where there are none. here it is a case of so called 'insider' info. not that pivot points are not interesting or useful sometimes not that chart patterns aren't. but the goal of this text is to lure you in and make you pay. as usual. no shortcuts. tntneo
THX Tnt, thats all i needed to know. No I wasnt searching for H.G. or gravy or nothing but rather I wanted to post this thing Im getting in my e mail every day... Can you belive those guys?! Alex
sure.. me too, I wanted to blast this kind of stupid ads. it's silly. thanks for not posting their actual names so even indirect publicity is not made to these idiots.
Just to let the cat out of the bag: For what it's worth (and IMO, not too much) the Value Area is the range within which around around 70% of yesterday's trades occurred. (If you look at all of yesterday's trades and prices, you'll generally see somewhat of a bell-curve distribution ----- lop off the 15% at the top and the 15% at the bottom and you have the value zone.) It was *discovered* by Peter Stedemeyer of Market Profile fame in the late 1980's. Theoretically, if today's market opens above the top of the value area and never enters the value area, it is extremely bullish. Bearish, of course, for opening and staying below the low end of the Value Area. If prices enter the Value Area from above or below and penetrate at least 25% into the area, then supposedly they will continue to move in that direction at least until they reach the other end of the area. Also if prices break out of the value area, supposedly the top now offers support and the bottom resistance to a possible move back into the value area. That's the theory ----- sometimes it works, sometimes not, but in my experience not often enough to warrant paying any attention to. I can hardly imagine that it's worth $2,000 ---- and in any event that's the system in a nutshell for free! There are much better future trading methodologies in my view.
market profile is absolutely a valuable aid to trading, but like all technical analysis, its how you trade off it that makes you the bucks, not the thing itself and by the way you can buy a book about market profile and a real valuable book - for under $50 - sorry - can't remember its name and i am not on a royalty - but like all the stuff people sell for 1,000s of dollars - you can find it all in books - and its free if you get it from the library or buy the book and return it and get your money back - i not saying you should do this - but if your are shmuck enough to lay out thousands for something you can get for nothing - maybe trading is not your vocation highs and lows are important, but only if they are at key support and resistance levels, and dont forget - there will be a high and low for the cash, the main pit contract, main overnight contract and emini
If ever there comes a day when we off floor traders know something before the floor...there will no longer be a pit to trade from...perhaps then we shall be closer to even.
You may be referring to "Mind Over Markets: Power Trading with Market Generated Information" by Dalton, Jones & Dalton. http://www.traderspressbookstore.com/traders-daytraderdepot/detail.html?item=329-s http://www.elitetrader.com/vb/showthread.php?s=&postid=17828#post17828 I'm not familiar with market profile analysis, nor have I read the book - just passing along some info.
The truth is that many floor trading techniques are (relatively) very simple. I know some of them (still being used) based on simple correlation. However, it does not mean that are so good. Good floor traders still make more than "off floor", but as everywhere, there are the limits. First of all rising volatility hurt them as well as others. second - results may vary.