Trading with Market Profile

email,

Ok. Thanks. I will go through them and post a footprint chart where the 30K sellers came in. I will also explain how the market broke down through support this morning.

The line in the sand was broken this morning to my surprise, but what do I know? Mr. market is my master.

Thanks Spain.

I thought we would test the 87's but the good US economic news that came out at 10 AM only drove the market to Fridays low of 1183. It was tested with bearish divergence (will post chart).

I will be attending a FREE webinar today @4:30 EST put on by a REAL hedge fund manager. They are not "trader education bullshi.....ers." They will go over the volume profile and next Tuesday they will go over order flow. Never seen anyone teach over flow reading for free but they will be doing it.

http://www.discoverytradinggroup.com/ -hosted by Market Delta.

I don’t use Market Delta and have NO affiliation.

So the explanations will have to go up later this evening.

Good trading,
Art

 

This is a Point and Figure chart set to a 5-tick swing. So whenever the market reverses by 5 ticks, a new bar is formed. It does a great job of eliminating market noise.

The bottom portion of the chart is a cumulative total of the bid minus ask volume – the delta. It is rest to zero at the 9:30 open. Some call it “modern tape reading.” It is NOT an indicator, but a visual representation of who is aggressively buying or selling in real time.

ET user AMT4SWA has bogged extensively on its use.

The lines you see are my way of keeping track of key price levels.

The thick lines are daily volume POC. The red thick line is the 5-day volume POC.
The dashes are the previous day’s high, low and close.
The red lines are pivot levels S1, S2 and S3
The green lines are pivot levels R1, R2 and R3.

The orange lines are daily breakouts – the high of the previous day was breached.
The red lines are daily breakdowns – the low of the previous day was breached.

I use these levels along with order flow to time my entries. I also keep an eye on market internals.

I print out my market profile chart and mark that also.

The annotated chart is how I train my mind to remember the patters that are observed in the market. It is done after the close and demonstrates where the best plays of the day were. I have months of these and I classify them according to the day type.

Good trading,
Art

 

I put the explanation in the attached chart
It there any way to post more than one chart at a time?

I don't have any time to explain the breakdown from yesterday. Maybe later if anyone out there asks.

 

Wow didn't even know you could do that with good ole Sierra. Nice chart.

 

Hi Art,

Very nice chart, looks allot like the market delta footprint chart.

I have never seen a P&F chart with volume in the box, thanks very interesting, cool.

email

 

Hello,

Taking any of the short setups kind of worked out. Do you think?

 

What is the best possible way to spot other time frame buyer/seller.

Can someone explain the "measured move"


Thanks in advance..

JT

 

I see buying and selling tails as the larger time frame at work. IMO that time frame stuff is outdated. Who cares what time frame people are operating on.

dVL

 

Single prints except in last 2 periods can indicate acceptance/rejection by the other time frame buyers/sellers.

And we are definitely concerned with what other time frame folks are doing if we want to participate in trends instead of rotating in narrow range which is the characteristic of shorter time frame.

Just my 2 cents,
Max

 

Max,

So you can tell if a day is going to be range bound or trending by looking a single prints? How do you do it?

I'm not talking after the fact - I mean in real time.

There are plenty of range bound days with single prints.
There are also days that could be considered trend days with no single prints.


dVL