fbutera, MP was my core tool when trading Bund/TNote futures intraday and certainly highlighted some very key levels which would get missed on a candlestick chart. Absolutely the best trading tool, probably more so because EVERYBODY looks at it who is trading Eurex/CBOT bond futures. However, moved country and can't find a decent outfit to trade intraday so looking to trade longer term timeframes but unsure as to how useful MP is in this sense- do you think it is as useful on weekly/monthly time frames? To me, candles give a better picture and it's what people usually look at when trading long term which kinda makes it more easy to pick where your average Joe has entered...
Absolutely! It's just as useful across the larger timeframe as it is on the day timeframe. I use the profile to dynamically chart an instrument. The long term timeframe really gets put in perspective with a software package that allows splits and merges. The software that only allows you to merge weeks, for example, doesn't have the power. If you take your daily profile and merge certain sets of days, leave certain days unmerged, merge a week here, a few days there, you get a fantastic view of how to trade the bigger picture. That's actually the main reason I love the profile. I can dynamically make a chart that fits the market activity. The market cycles just can't fit a static timeframe (ie, 5min, daily, weekly) charts. the MP allows you to dynamically manipulate the data which can be made sense of. Understand that not every package allows you to work the data this way (eSignal, CQG do)
New market profile manual at the cbot. Over 300 pages and 12mb. Very complete. http://www.cbot.com/cbot/docs/handbook.pdf Good luck!
You have two options. Use vol from futures contract. Not a good option in my opinion for several reasons. You can draw a 'price distribution' using price pip-by-pip that is very close to a volume based 'gospel approach' to mp. The second approach is better than the first. Better than nothing at all. Good luck!
Yes, I've been using the trade weighted profile with success. Oanda sells their volume/trade data as well.
Hi I'm starting to use Market Profile together with another indicator that charts what the market will do, 6 hours in advance, and updates the market path every 15 minutes. I'm trying to use Market Profile to define the best stop loss (resistance and supports), for the trades the the indicator gives. Attached you'll find a print screen of the indicator in eSignal, and how it looks. The print screen was taken at 11:00. The Grey line is the prediction for the rest of the day. As you see, the predictor identified that the market would move on that low volume are for the market profiling. Would you place a stop loss above the value zone? I'm not very good reading the market profiling chart. Thank you,
Taking good trade signals off MP levels have a huge advantage over all the other crud between MP levels. I trade double position size when a signal that I have is at or off a MP s/r level.....they are rock solid to take trades from imo.
5Pillars, I've noticied the same thing. But still on my MP study, I get many S/R Levels. At least 4 or 5. If the market is going down, and the first support level is not respected, do you average down, when the second support is reached? In my case, as I am using the prediction signal, I only average down, If the prediction signals LONG, and it is just a market oscilation. But I'm not sure if I'm using the support levels the right way. Thanks.