Market Profile (Theory & application )

Hani, I think the others posters on this board, although making valid points, are missing the point of Market Profile. The whole point as you know is to use time at a certain price to estimate support and resistance levels etc.

The charts you posted looked good and seem to adhere to the s/r rules.

 

Tubbs, You are right. It is not as simple as it seems. Plus many heard a word or so from a friend and built their opinions upon. It is worthing some research and study to better understand how MP is working and what to get out of it.
I hope we share here MP applications in forex.
Regards, Hani

 

Dear all, to give a referenced opinion about the debate of: whether MP working in forex or not plus volume issue. I contacted Mr. Daniel M.Gramza, president of Gramza Captial Management. inc. and authorized CBOT market profile trainer.
I am pasting his replies here:

Dan> I am currently in Singapore teaching a Market Profile course for the exchange. I have been asked the same question here. The answer is yes. You can use tick volume as a substitutein the FX market for actual transaction volume.

Dan> in markets where we have actual trading volume, there is a correlation between the market profile shape and the volume histogram. In other words,where we spend more time we do more volume in general.Therefore, it is reasonable to assume that this will also hold true in the FX market. I have been using this with the FX market since 1985 and I have found it to be a very useful tool.

Regards,Hani

 

i have friend that uses tradeshight to get marketprofile numbers on fx has had great luck with it.

 

What is tradeshight?

 

sorry tradesight.com i have no affiliation with them

 

Hi all, i just read your few messages on market profile
and was wondering how/where you get the data for forex,
as it's the market i'm currently trading?
( saw this market profile eur/usd chart, i've downloaded and started to read the 300+ pages manual explaining how market profile works, but have still no clue on how you get charts, and more precisely fx charts ... )

cheers

 

I agree the original time-based MP solved the problem that volume data is not available in forex. But that bring alone another problem.

As different forex centers open and close at different time, what's the best trading hours to be count for daily MP, expecially on Friday and Monday?

 

pump

 

They overlap but it seems better to treat each time zones trading day as a separate profile rather than treating a 24 hour day as a day.