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Soultrader

[MP] Trading with Market Profile

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Im having some esignal datafeed problems since mid Friday. Havent been able to retrieve any futures data. The Dow collapsing, did not expect that at all. Will add further analysis once I get this datafeed issue sortened out.

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Ok quick chart on the ES. Had some data issues the past day or 2 but finally back in business.

 

Setup using market profile and VSA. First chart shows a test on no supply followed by another no supply bar. Second chart shows the range extension yesterday above the 1/22 high. I am looking for value to be established in this area. Range extension in late afternoon may indicate initiative buying above the previous day value but the other time frame market participants. Hence the long setup as price came close to the 1/22 high before bouncing upwards.

 

Stop @ 1332.

 

attachment.php?attachmentid=4892&stc=1&d=1201169746

 

attachment.php?attachmentid=4893&stc=1&d=1201169746

5aa70e35dba0c_Jan.242008ESChart1.jpg.41f785a3f0cc18bc82a18b187b29ffca.jpg

5aa70e35e1b34_Jan.242008ESChart1MP.jpg.5236e85c42d1f0024f35de9c28159b3e.jpg

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Below shows my first exit. Volume kicked in to push through the supply area.

 

attachment.php?attachmentid=4897&stc=1&d=1201172480

 

Second snapshot shows interesting DOM at 1333 holding the bid with 400+ cars. This added confirmation on the long side. (note that this is premarket action)

 

attachment.php?attachmentid=4898&stc=1&d=1201172631

 

Below shows my final exit using resitance area and sudden volume surge.

 

attachment.php?attachmentid=4899&stc=1&d=1201172675

 

Final exit is based on market profile as well. Referring to the earlier post using the market profile chart, I am expecting price to rotate in btween the overnight high and the 1/22 high.

5aa70e35e5ede_Jan.242008ESChart2Exit.jpg.4ef435142402cac19dae7acf65121a7e.jpg

5aa70e35e8e6f_Jan.242008ESChart3Dom.jpg.ebe00692654fe5c3a1bd71af0ec8d22a.jpg

5aa70e35f069a_Jan.242008ESChart4Exit2.jpg.de3de7c209746699698141dd2b6e6ac6.jpg

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Okay sorry for the delay. Had some datafeed issues but now all setup with IRT.

 

Below is todays ES profile. A couple of things to explain first.

 

  • Thick red bar is value area.
  • Thick blue bar is the initial balance.
  • Thick green bar is 0.5 times the distance above/below the IB.
  • Thick yellow bar is double the distance of the IB.
  • Orange horizontal line is the POC.
  • Volume profile is shown by the histogram.

Profile shows a trend day with IB extensions approximately 2.5 times to the upside. There is clear push of price into the previous session value area. B period tested lower below the 1/25 range to seek supply. This was cut off resulting in a open-test drive format.

 

attachment.php?attachmentid=4937&stc=1&d=1201575266

 

attachment.php?attachmentid=4938&stc=1&d=1201575332

 

Though Asian markets are reacting positively today, the action does appear to be just an reaction of 1/28 US action. Therefore, I will not be holding a bias based off the Asian markets. ES profile indicates potential balance zone. 1/24 showed a normal day with price pretty much trading within the wide initial balance. The profile also shows symmetry.

 

attachment.php?attachmentid=4939&stc=1&d=1201575579

 

1/25 slipped lower below the 1/24 value area. This was a sign of weakness. However, on 1/28 price tested for supply below the 1/25 low, found demand and pushed price all the way back above the 1/24-1/25 value high. Hence we are seeing balance => weakness => strength.

 

attachment.php?attachmentid=4940&stc=1&d=1201575791

 

attachment.php?attachmentid=4941&stc=1&d=1201575859

 

Market profile levels:

 

VAH: 1350

VAL: 1334

POC: 1344

 

Will be looking for rotation in balance or overlapping to higher value placement. Confluence area of 1/18 high, 1/24 high, and 1/28 high will remain a key reference point. Question will be: How far are we likely to extend the current 3 day overlapping value area?

5aa70e36bcae2_Jan.282008ESMPChart1.thumb.jpg.2646c3797a71d9f29f9810943234fcc8.jpg

5aa70e36c1594_Jan.282008ESChart1.jpg.99c33d3b41cf0bdade22e01815ccf5ec.jpg

5aa70e36c5ae6_Jan.282008ESMPChart2.thumb.jpg.23fab1959b8cd2003d1b76336978178b.jpg

5aa70e36cac05_Jan.282008ESMPChart3.thumb.jpg.2cb448d2d59daeeac85f1d01500235cc.jpg

5aa70e36d13e9_Jan.282008ESMPChart4.thumb.jpg.ab1a3f2d4691791c7ca6253a1d81b2b5.jpg

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Thanks James...I'm learning alot from the MP video and these posts.

Now I just need to get a market profile platform and feed. ;)

 

Added---

Question, so today we had a buying and selling tail. The buying tail has 3 compared to the 2 on the selling tail, does that mean anything?

 

Also is there a decent MP provider for a cheaper price compared to Esignal you might recommend?

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I dont really count 2 print tails as single tails. There is not much significance compared to clear 4-5 print tails. Each print in the chart shows 1 ES pt. A slip of 2 ES pts is common so wouldnt pay too much attention on the tail element... but rather it is a key resistance level.

 

On the buy tail.. to me whats more important is the level of confidence expressed by the bulls today indicated by the open-test drive. The range extension was also early in the day at C period with D-G period all holding pretty much above the IB. What the profile is telling me here is positive confidence.

 

Regarding mp vendors, I am using Investor RT with IQFEED. This has reduced my costs compared to esignal. Esignal was good but I encountered problems connecting due to my dynamic IP address. You might want to look into it or grab the free trial first. Contact LS_Chad if you need any help.

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Since you use Infinity AT is there a reason you don't use Sierra chart for $44 a month. The data would be free from Infinity right? I guess they do more TPO and not full market profile?

 

I've looked at this several times but just am not ready for the leverage and am between brokers right now. I'm probably going with Think or swim for stocks and the hope is I'll have enough in the near future to open an Infinity account as well for futures only. :)

 

Thanks again

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Since you use Infinity AT is there a reason you don't use Sierra chart for $44 a month. The data would be free from Infinity right? I guess they do more TPO and not full market profile?

 

I've looked at this several times but just am not ready for the leverage and am between brokers right now. I'm probably going with Think or swim for stocks and the hope is I'll have enough in the near future to open an Infinity account as well for futures only. :)

 

Thanks again

 

I used to use Sierra charts but got extremely frustrated with the software. It was a constant pain in the ass to deal with and definitely not user friendly. I would much rather pay up for a charting package which I like than seeking for cheaper alternatives. Makes my life easier :)

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Current long setup for the day. Concept here is seeking value slightly higher than the previous 2 day overlapping value area. Price gaps up above this 2 day overlapping value area creating slight imbalance. Hence, looking for VAH to hold.

 

Entry at 1356 with stop @ 1353.

 

Volume is also kicking in with narrow candle body showing demand meeting supply. Also market internals shows a new $TICK high. This added confirmation of the support at VAH.

 

attachment.php?attachmentid=4947&stc=1&d=1201619601

5aa70e36eabf9_Jan292007LongChart1.thumb.jpg.bfe9272b9f4d3aa9b0578a17b8d1614d.jpg

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Below shows first exit at the 61.8% retracement. Play based on volume & price analysis, internals, and market profile levels.Also holding bias from earlier post regarding overlapping to higher or higher value placement for the day compared to yesterday.

 

attachment.php?attachmentid=4948&stc=1&d=1201620521

5aa70e36eed13_Jan292007ExitChart1.jpg.90335f2fe3f778ab3ca6bb5bb2b35638.jpg

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Update: Second exit target is shown at roughly the 1.5x IB range extension mark. This is shown by the green bar.

 

Also notice the confluence of 1/25 high as well.

 

attachment.php?attachmentid=4949&stc=1&d=1201622943

 

Concept here is I am looking for overlapping to higher or higher value placement. However, markets are not showing signs of a wide shift in value. For now, a normal day can be extended with potential IB range extension 1.5x the initial balance. Hence the projected target level.

 

Note that 1.5x IB extension and 2x IB range extension are plotted on the charts automatically. Pretty cool feature of IRT.

5aa70e3703c12_Jan292007NextExitChart1.thumb.jpg.2b25ba2cca86ded8d05a975b014a13b1.jpg

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James, how would you interpret the most recent MP chart on the YM? From looking at the stock chart I would say theres a lot of buying and value is slowly rotating up. But could there be a conflict between different timeframes, say short time frames selling the market and longer time frames buying? This is just a guess...

 

attachment.php?attachmentid=4996&stc=1&d=1201842202

mpjan31ym.thumb.jpg.633fc339a1f0cbdd43cbdad4c15a9aad.jpg

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Excellent thread, Soultrader.

Market Profile was the main reason I've joined Traders Laboratory.

I've downloaded some Excel spreadsheets from another Market Profile thread over here to gain some insight into programming. I'm not willing to pay another 50 bucks per month for that since I know I can have it for free having the Data Manager already running.

It's just that I stink in Excel sheets programming :crap: and I just don't have the T I M E to get into a Excel for Dummies book.

So for the moment I'm helping myself by typing each single number (I'm using two-digit numbers instead of letters. It looks better.)

At least that keeps me awake and alert when trading gets boring.

I'm using MP on indiviual stocks. I'm not trading futures.

I got a great feel on MP ever since I read the first chapters of Mind Over Markets. And I felt inclined to skip the last chapters of this great book.

Now, I must say after trial and error I stick to Candle Charts and Fib levels to time my entires and exits. Market Profile is great for the overall picture of what's happening.

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James, how would you interpret the most recent MP chart on the YM? From looking at the stock chart I would say theres a lot of buying and value is slowly rotating up. But could there be a conflict between different timeframes, say short time frames selling the market and longer time frames buying? This is just a guess...

 

attachment.php?attachmentid=4996&stc=1&d=1201842202

 

Sorry for getting back to you late. I will do an analysis for today session after the close.

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Okay here is YM profile for 2/4, 2008.

 

We are seeing 4 days of overlapping to higher value placement with price action on 2/1 balancing out in the upper half of 2/1 range. This is strength.

 

attachment.php?attachmentid=5030&stc=1&d=1202111531

 

Premarket action shows support at 2/1 VAH as well indicating another possible overlapping to higher value placement. TOPIX up 2.08%, Hang Seng up 3.13%, Singapore up 2.71%, and European markets green across the board this optimism will most likely be transferred into todays US trading. Hence increasing the odds for another overlapping to higher value placement.

 

attachment.php?attachmentid=5031&stc=1&d=1202111531

 

Also note on the daily chart we witnessed heavy accumulation on 1/22. Big sell volume followed by a close higher the next day. Clear demand here. Also notice the push through supply bar and volume on 1/31/08.

 

attachment.php?attachmentid=5032&stc=1&d=1202111873

5aa70e399148d_Feb.42008YMMPChart1.thumb.jpg.10cf16202f8ffe1dccc1234f87144e5d.jpg

5aa70e3997b25_Feb.42008YMMPChart2.thumb.jpg.588328ed97ce9aa2783ab18389ef32a7.jpg

5aa70e399be11_Feb.42008YMDailyChart.jpg.d918048ffb398d91eaa3b5333d08304d.jpg

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Thanks James! Your input is greatly appreciated since there is a lot of discussion around the recent rally.

 

No problem. Take a look at what happened on the YM. Very nice setup at the VAH mark.

 

attachment.php?attachmentid=5035&stc=1&d=1202127782

5aa70e39a9c41_Feb.42008YMMPChart3.thumb.jpg.c675f72c31af23ac9412851462429b56.jpg

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Long setup chart here on ES. Concept same with previous post still looking for overlapping to higher value placement. Basically looking to fade this entire morning decline. Trade location based on market profile at previous day POC and then reading price and volume.

 

attachment.php?attachmentid=5037&stc=1&d=1202140850

 

attachment.php?attachmentid=5038&stc=1&d=1202141503

 

I have created a multimedia expanation for this entry point as well. Please click here to view video. Thanks for watching.

5aa70e39ad8e7_Feb.42008YMLongTrade.jpg.3f9d085d7b6cf759793982bf79987682.jpg

5aa70e39b403a_Feb.42008YMLongTradePOC.thumb.jpg.82d0670a495588ba42d7a7827ff380e1.jpg

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Demand instantly disappeared above the PP level. Below shows 1st and 2nd exit for a not so good trade. Was looking for more pts but no demand bar was enough for a confirmation to exit. No demand is highlighted by a blue transparent circle. MP is showing symmetry and a potential overlapping to higher value looks weak at the moment.

 

attachment.php?attachmentid=5040&stc=1&d=1202145001

5aa70e39bce59_Feb.42008YMLongTradeExit1.jpg.1ba589d3c07f770981487077311af8db.jpg

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Heres another stab long. Similar setup from previous posts and similar concept with trade location near POC. Trading is taking place mainly within the IB with minimal range extension downside. It does appear it will remain that way for the rest of the day.

 

Stop @ 1382.50 (1.75 pts from entry)

 

attachment.php?attachmentid=5043&stc=1&d=1202150118

 

Profile is showing slight selling today. Most likely a low volume pullback after the recent rally. Volume is extremely low for the day as well.

 

attachment.php?attachmentid=5045&stc=1&d=1202150332

 

UPDATE:

 

Quick exit here. Not seeing any potential big swings.

 

attachment.php?attachmentid=5047&stc=1&d=1202152113

5aa70e39c77ff_Feb.42008YMLongTrade2.jpg.431c5b088f6f1a22edfd1e1f17cd1b85.jpg

5aa70e39d27d4_Feb.42008YMLongTrade2MP.thumb.jpg.af87865ce7eb248ef5989ed7b44c2efe.jpg

5aa70e39d7366_Feb.42008YMLongTrade2Exit.jpg.b9037cf56cb1c42d24316e7ce4c34555.jpg

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