Trading with Market Profile

I look at range extension and check whether single prints formed by other time frame are able to close the market back within initial balance or not.

There will be high probability of trend days when there is narrow initial balance and thats when I see the range extension to measure the strength.You get a wide initial balance and there will be high probability of lots of chops and fading looks ok there.Single prints there don't look attractive for trends.

There will be fakeouts make no mistake about that even if above is done but you will at least be a bit alert.

Thats how I do it anyway,you can devise your own methods,I would suggest reading both books Mind over markets and Steidlmayer on markets.

Best,
Max

 

Max,

Thanks for your input. I agree with you in principle, and I do use the initial balance in my trading, but I had a difficult time formulating a trading plan with some of the ideas you mentioned. I use market profile for support and resistance levels (including intra day value areas). That’s what works for me.

Trying to figure out what type of day it is going to be was not productive for me, but if it works for you more power to you.

Buy the way, I have read the books you mentioned and few other MP books as well.

dVL

 

If you are looking for Market profile tools then take a look at these. I have been using them for 3 years and they are by far the best tools i have used. They are from a company called trade Angle Strategies. http://www.tradeangle.com/tools-indicators.php?tasid=31

 

No problem.

The basic premise for me is not figuring out what kind of day is as per the book but seeing whether its balanced or out of balance.

Thats where range extension combined with single prints helps me that's all.Say a balanced open and testing extremes,so single prints can be faded and so on.May get creamed if it breaks but for most times it doesnt,you can combine such read with price action to get an idea and a filter of sorts on when to stay out and when to go in.


Best,
Max

 

What are the basic characteristics that helps to distinguish between the market controlled by locals and the market dominated by the other time frame traders?
basically i want to know how to spot the early signs of a market transition from one timeframe to 2 timeframe activity - from locals to the other time frame or long term traders?

 

CBOT used to published that info in Liquidity Data Bank. After CME bought CBOT, they picked up that product.

http://www.cmegroup.com/market-data/datamine-historical-data/ldb.html

With LDB, you can:
Understand which traders are driving the volume and at what prices
Find out what type of customers (CTI 1, 2, 3, and 4) are buying or selling over different time frames
Discover who is providing liquidity and what prices are trading the highest volume
Access intraday updates
And much more

 

..."much more".. ask CME for the costs

 

Alex Benjamin has a facsimile of the old LDB. I've seen it in webinars but have never used it. That’s just not my thing.

Look for TD_LDB
http://www.tradingclinic.com

dVL

 

... you need to be a memeber in order to access to http://www.tradingclinic.com/tcldb/tcldb_1.php

 

I went to tradingclinic.com and looked around. Here's what I found. No "contact" section. No "about us" section. Unable to figure out who the person was that was speaking in first person. The section about now there is a $39 charge to refund your money because it's gotten to be such a hassle is funny. I went to "whois" to lookup "Alt Capital Management" and gues what they are a mystery also. I Googled them and nothing. The only bit of info that lead me to anything is the referrence to IOAMT. Please don't tell me this is yet another website to rip people off with that silly Corvette trade.