Looking over this thread and reading people say that market profile is not good etc. is mind boggling to me. I traded on the floor or 2 exchanges and when that game dried up and turned into an electronic venue I moved with it. It was a very humbling experience until I came across market profile, to me it is a simple structure philosophy tool. Thats it. You can see the markets intent and its success or failure. The problem with most traders is they are looking for the holly grail....well guess what its not out there. Try something that if understood gives you high probability trades ---yes there may be days when you trade 1 or 2 times and days when you never trade but it is the best tool in understanding what the market is trying to do.
SawDr, check out www.tradeangle.com indicators. They have several based on market profile that display trade entries.
I concur. It is all about making sure your techniques are correct. For myself, I was looking for the posted reasons "why" it would not work so I could compare those to my own experiences. It is always good to check opposing views and see if they merit your attention. FEAR of losing trades is why the thread gets more play.
i use it with trendlines,either a previous nip or cleavage or a res or support trend line is an entry and the current days nip is an exit
So, we now know some claim MP works for them. Do those care to share some specifics? Saying MP reflects some "intent" and "success" and "failure" does not have to mean anything. Do some of you care to paste a chart and explain what edge MP exactly has? For example an interpretation of a snapshot and what informatin you think it may give away. I never gained any additional value beyond simply looking at conventional s/r (previously discussed). So far, some I asked and confronted with an MP chart during trading hours could hardly ever draw any meaningful conclusions from it which made me stay away so far. Mayb there is value in MP which I have overlooked before?
this is a decade of yearly mp profiles i pulled off of chart hub,not my own,notice the lows for consecutive years bounced off of the previous years nip in 04,.05 and 06........notice the high in 08 bouncing off the lower nip in 07
heres the chart, also notice the lower nip in 08 around 850-870 that we are near to as of fri , a rally up to this nip if it gets there would be a good short
ok heres my general view 1. whether you look at bars, candles, renko, point and figure of MP they are all looking for something to tell you what the market is doing correct? The difference with market profile and those other charting techniques are subtle but the major difference is in the approach in deciphering the maket information generated. When someone talks about hard fast setups in any technique for example bullish engulfing pattern(candles), 1.5x IB (mp) etc the setups only work when they work. Sounds stupid I know but its the truth.... the real thing that attracts me to MP is the general approach is unparralled. I dont use MP for the BS setups guys are tryng to sell I use it with bid ask analysis - not just volume analysis-. Heres the whole thing in a nut shell for me as long as you are consistant in your approach Im sure any charting technique can work I use MP because of the simplicity it doesnt have moving averages (past looking) it doesnt use fib #'s ( some calc invented for soemthing entirely dif and fitted to explainwhere the mkts are going or have been) etc, it uses simple tim and price to determine inflection points in the market place that show where a significance has been placed by the majority of its participants. The most simple approach is to look at the price days value area (where 70% of all trade took place) and see where price and volume are occuring today and ask the very simple question what is the market trying to do (price movement) and is it doing a good job (volume and time). I will do some chart mark ups and post them this evening.