Sincerely Market Profile has to be the only choice if I were to be limited to one method to trade with. MP has to be the hardest thing to learn other than selling premium. Many know and for those that don't I have at my disposal every trading method there is. I will declare MP is not a waste of time but unbelievable in terms of what it can give you back for your efforts to learn it. Thank you Dalton for making it understandable where I could learn to master it. How long did it take you might be wondering? I looked at it for 12 years of those 12 it took me 3 years of piddling with it and a cost of about 75k lost trying it. Note I was trying other methods during this time so it was not my sole focus. I like many thought it was interesting but not a complete method. It finally hit me one day and over the course of about a year i refined my money management and never looked back. For the first time ever I can say I could stand in front of an audience and trade with nothing else but MP and would not be embarrassed to have someone watch what I do. I am that confident in what I proclaim. It's simple the market either cycles or it trends you have to learn how to read the MP it will tell you what the market is doing. Other than that you must be a business man and understand risk and the control of it. It truly is not trading it is just a business and if you have not succeeded at some type of business then you may have a harder time. Anyway I am not trying to sell anyone on the idea of MP - there are many many ways to trade the markets - many tools. I just wanted to humbly say thanks to some guys I respect and now fully understand what they must understand. Mark Brown disclaimer - I am one of only two individuals that are registered as a MP vendor for the CBOT but have not sold any products in over 10 years as it was to big a hassle keeping up with the monthly charges the CBOT required me to collect. But I never lost interest in the MP and glad I didn't give up.
I am surprised nobody has responded to this. Are there any books on Market Profile you would recommend that someone with little knowledge about it other then the basic principle could learn from? Thanks for sharing.
Mind over Markets / Markets in Profile / Markets and Market Logic. Nothing earth shattering here -- The market is an auction. A few simple concepts combined with the experience to know what to do when (context). A helpful way to view the markets and risk.
Thanks for sharing and and your post is encouraging me to read more more on Market Profile. May I know if you're day trading/swing trading with mp and on what instruments.
Can you explain why MP is the hardest thing to learn? Maybe you can highlight some concepts/scenarios where you find it useful.
in '86 there was a guy next to me in the oex,he had a 3x5 card in his hand with graph paper squares on it, and was hand drawing the mp on the spx,then it traded in nickles and had a 3 point daily range,the class was $2500,several traders had taken it and said they couldn't make money on it, i started doing the same hand chart and within 6 months could see repetition,it only makes about 4 patterns,i suggest hand charting it during the day in 1 point increments on the es ,within 6 months, you will see what's obvious...http://www.trading-naked.com/Articles_and_Reprints.htm
this is a very honest portrayal of the usefulness of mp - i had to learn it manually also. then and only then did it make any sense to me. you quickly learn what to expect from the day. i only use it to day trade with. m
Thanks for those comments. Very timely, as I just started reading the two Dalton books on MP. I attended a webinar today given by Greg Weitzman at The Trading Zone, and MP featured prominently in his day trading strategy. I wonder -- are there any current teachers of MP strategies that you would recommend? Or just hit the books and figure it out? Seems there are a few computer-based MP indicators on the market. Regards, Michael
I fully agree with the concepts of market profile. Can someone explain how it will tell you anything different then what is displayed on a price and volume chart?
http://www.charthub.com/images/2010/03/08/YTD_ES_MP_4 heres acumulative mp chart, not mine, this guy is kind enough to post these all the time all the widest spots are nips and the narrowest cleavage,( the class has 3 letter acronyms for about 10 things, nip and cleavage are a lot more self explanatory and easy to remember) they serve as support and res ,same as a bar chart with trendlines, if u start to hand chart ,don't read it off the computer ,u will miss a lot,you will start to notice how it back fills the cleavge and retruns to or is repeled by the nips,if this was a daily chart tou would expect it to fill in as the yellow line suggests,once u have learned to read the daily charts ,these cumulative charts aren't much different, they take days or weeks or months to fill instead of hours,1144 is currently being repelled