Hi, I was wondering if anybody uses market profile for trading stocks (extremes to value area trading). If so, how do you incorporate what the general market does into your trading. For example, if a stock is trading at a lower extreme and you want to go long to the value area, but the market is down 65 points....how does that effect your trading decision?
"If so, how do you incorporate what the general market does into your trading." I've constructed a profile of equities which I compare to the market. Key points are when they don't correlate. Regarding a trading decision based on my market profile, I use psychological indicators on whether to exit or enter. If there are extraneous factors ie options week, fomc meet, I wait till I can take advantage of my psychological indicators. Obviously, these are longer term trades.