In Mind over Markets J. Dalton describes a couple of special situations, one of them is the double print in the VA, which is mentioned by trdinglife in this thread. With a little imagination you can come up with losts of profitable setups. One of the setups I trade is the following: If the markets trades below the VA during the open enter short upon the first opportunity where the $tick peaks above yesterday's VA. Opposite for longs. Target and stop both 2 pts.
I just started looking into market profile. Would you be kind enough to indicate who do you use to provide these charts ? Also, what does the second set of charts mean ? (07) Thanks in advance
In addition to this thread in ET, there is a discussion group for users of Steidlmeyer's newest software CapitalFlow, but it's mostly inactive now. There is an active discussion at Reefcap forum. And some argue it's not useful at all: http://www.reefcap.com/ubb/Forum19/HTML/000034.html
"gekko I just started looking into market profile. Would you be kind enough to indicate who do you use to provide these charts ?" The major charting software vendors provide Market Profile (with an additional fee because of the CBOT copyright). More info at http://www.cbot.com/cbot/pub/page/0,3181,1183,00.html "Also, what does the second set of charts mean ? (07)" That would be the (NYSE) tick - not MP related !++
You can also run a MP study on the $tick, however I set the calculation of the VA to 90% instead of 70%.
As I recall correct already around 1990 D. Jones of Cisco futures addressed the problem of the lack of the predicting value of the daily VA. He introduced the concept of multiday VA's, of which the initiator of the discussion obviously wasn't aware.
The major charting software vendors provide Market Profile (with an additional fee because of the CBOT copyright). More info at Thanks Vince1 More stuff to look at for me now. I have found the market shaman room to be real good for MP education Cheers
mtzianos, interesting post about the value of MProfile...what I got from that discussion thread you pasted in was that the guys he had been talking to were trying to pass MProfile off as some holy grail of charting...and as such, deserve this guys disdain... having said that, I use MProfile almost exclusively as a means to chart the days price action...yes there are various setups that the MProfile provides as a means to enter and exit trades with relatively high probability results...but guess what, those who know candlestick charting inside and out would probably say the same thing about them... In my opinion the real point being missed here is that MProfile is not really to be used as an Indicator like stochastics, or gann lines, or fibonacci...it is merely a different graphical representation of what occurs between price and time throughout the day...I like it because it is easier to read these profiles than any other charting tool I have used...but, I use the MProfile in conjuction with price action; I use it to give me an idea of where support and resistance levels occur; I use it to show me where price spikes and Value Areas occur: and so on...MProfile has allowed me to observe recurring patterns and in my opinion does this in an extremely trader friendly fashion... at the end of the day you either like it or don't...but frankly I think it's worth a serious look... I use CQG as my provider...expensive but as with most things in life and trading, you get what you pay for...