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Soultrader

[MP] Trading with Market Profile

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Market Analysis for Feb. 19, 2008

 

Below is Fridays MP chart on the ES. Lower value placement with profile resembling a normal day in which range extension is approx 1.5 times the initial balance.

 

attachment.php?attachmentid=5250&stc=1&d=1203324315

 

The biggest visible clue, however, comes from a 5min candlestick chart at the close. Notice the volume at the last few bars into the close.

 

attachment.php?attachmentid=5251&stc=1&d=1203324463

 

 

Current plan will be looking for weakness around the 2/14 VAL at 1349-1350. Normal day profile for 15th does not indicate strong buying conviction.

5aa70e3e48b7a_Feb192008MP.thumb.jpg.27f844ce2a4ed9b43769049b98f66485.jpg

5aa70e3e4e45c_Feb192008Chart1ES.thumb.jpg.6648f8a717db51a4edd8ddc6e6db9667.jpg

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Update:

 

Interesting price action overnight. Price rallied to break into Fridays value area. However, resistance met around the 2/13 VAH and a retracement back to Fridays POC area. Price is currently trading within value.... it appears to want to hold within this area.

 

Possible key areas to watch now will be 1368 (overnight high and 2/13 VAH cluster), 1361.50 (VAH), 1355.50(POC), and 1349 (VAL)

 

attachment.php?attachmentid=5253&stc=1&d=1203421081

 

Looking more closely at resistance areas for today. Nikkei acted a little weak in the evening session. Price extended the IB during the regular hours just to be extended towards the downside in the evening session. Profile resembles that of a neutral day with range extension on both ends. However, the closing price action to extend below the IB and back into the previous day value area is hinting a little weakness.

 

Below shows the SIMEX Nikkei contract.

 

attachment.php?attachmentid=5254&stc=1&d=1203421240

5aa70e3e5bb83_Feb192008MP2.thumb.jpg.4d3ff472e8cd0d89b97b40060bb22e29.jpg

5aa70e3e62410_Feb192008SGXNikkeiMP.thumb.jpg.983f18b91e33056457237eccfb845cfb.jpg

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I have been a lurker for a couple of months now and have learnt a tremendouus amount from this site. I am posting of yesterdays action and would love to hear some feedback and critiques. I am by no means on the same level as some of the traders here buy hopefully I could help those below me and be helped by those above.

02-19-08.thumb.png.ad4fa2d3767f4dbb5081a2d9b11cb85b.png

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Hi

I am newbie in MP ,but yesterday Initial balance represent for me:

-Open out of value and responding selling

-selling tail in A period .... other TF sellers entry ( I try go with them)

--I use TICK and moving average of TICK was below zero line during initial balance

 

This are reasons why I didnt look for long setup during a day.

 

It would be nice some comment from soultrader.

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  kuky969 said:
Hi

I am newbie in MP ,but yesterday Initial balance represent for me:

-Open out of value and responding selling

-selling tail in A period .... other TF sellers entry ( I try go with them)

--I use TICK and moving average of TICK was below zero line during initial balance

 

This are reasons why I didnt look for long setup during a day.

 

It would be nice some comment from soultrader.

 

Good points kuky969 especially recognizing the A period tail. I was also focused on only the short side yesterday. Main bias was based on the Nikkei profile which showed a neutral day but with range extension downside in the evening session and close into the previous day value area. This was the first sign of weakness. ES rallied overnight towards the 2/14 high where it met resistance. Second hint of weakness and possible rotation into previously developed value areas. There were many opportunities to short near the 2/14 VAH... H-J period met resistance around this level.

 

More than MP for yesterday, I found more clues of weakness through reading candles and volume. For 2/19 profile, you will see price within the 2/14 range and above the 2/15 VAH. This is the new bracket at the moment.

 

attachment.php?attachmentid=5270&stc=1&d=1203499882

 

Below is todays SGX Nikkei. Gap up but strong rotation lower resembling a double distribution trend day down. Notice A period left a tail. One-timing auction took place most of the time.

 

attachment.php?attachmentid=5271&stc=1&d=1203500072

 

 

There is a heavy correlation between these two markets. So one question that immediately pops up in my head is how will this weakness transfer over into the US markets? ES declined yesterday. However, it created higher value placement. Now even with higher value placement, Nikkei gapped up and finished lower with lower value placement. The optimism did not transfer through to Asia.

 

I am remaining flexible to both long and short today but keeping in mind the weakness from the Asia markets. The reason being ES had quite a bit of accumulation at the lows yesterday. This area will be short term support... premarket is holding at this area as I write as well.

5aa70e3ebf349_Feb202008MP1ES.thumb.jpg.cb322726f0030f314dd22e404fd9b668.jpg

5aa70e3ec6526_Feb202008MP1Nikkei.thumb.jpg.cfabbba6a5dbd9155c4f5bf40d6170c5.jpg

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hi soultrader

i start learning MP 4months ago and stIll trying to grasp it.

i will be happy if i see your comment on the charts

what should be the reaction In such case

how to analysis this MP

THE THREE MP CHART IS FOR BOUND IN 21\FEB\2008

thanks alot

1.gif.d1c8036fd92fe0dd364fd96bcabd0ea5.gif

2.gif.f73fcc26aea8c624fe3d3845062448b9.gif

3.gif.8a87b08f965cb49886eda7defaedbf0a.gif

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Hi trader_74,

 

Can you tell me what contract that is? I would like to pull up more mp profile data going back a few days in order to comment on it. If I do not have access to the datafeed please post the past 3-5 session profile so I can see the type of days it is showing. Thanks

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Hi, what contract is this? I prefer to use my own charts as it seems like you are using a 24 mp chart. The two previous charts you attached... I cant figure out if they are connected in date or what letter the first period is set to. a period is the first period?

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  trader_74 said:
thanks alot

 

you can check it in your chart using the following symbol

 

6B H8

 

You are making it a little difficult for me. Can you tell me the name of the market. What currency future is that?

 

Also what letter does the first period begin? Please add the dates from the previous charts as well so I know what comes first. Thanks

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  Soultrader said:
You are making it a little difficult for me. Can you tell me the name of the market. What currency future is that?

 

Also what letter does the first period begin? Please add the dates from the previous charts as well so I know what comes first. Thanks

 

Hello to all, if I can comment, I think that 6B stand for the British Pound future contract.

 

Sincerely

 

Shreem:)

 

BTW, SL, really love your analysis of MP.

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  shreem said:
Hello to all, if I can comment, I think that 6B stand for the British Pound future contract.

 

Sincerely

 

Shreem:)

 

BTW, SL, really love your analysis of MP.

 

Thanks Shreem, I dont have datafeed for the pound future contract. Trader_74, can you post a mp chart consisting of past 5 sessions or so showing the highs/lows and dates on them? Also let me know the letter of the first period. Thanks

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Hi

thanks shreem

 

thanks alot soultrader for your response

i am trading

Britlsh Pound

6B H8 is a stand for british pound

the market is

chicago Mercatile Exchange(Including CME Globex )

 

FIRST LETTER IN THE PERIOD IS

q,s

 

Sincerely

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  trader_74 said:
Hi

Soultrader

Thank You Very Much

I Can See Only Three Session In The Same Time In The Mp Chart,so I Am Going To Devide It In Tow Snapshot TO COVER FIVE SESSION

 

Hi,

 

Short term analysis based on the past 5 sessions. Will need more to see the longer term strength or weakness.

 

Please see attached.

5aa70e4032ebc_MPforBP1.thumb.jpg.9e5a47c24f288da9e3640bcae72f0db0.jpg

5aa70e403a7c9_MPforBP2.thumb.jpg.3996619040efc13e6c605c4ae182f45b.jpg

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Hello Soultrader, thank for your detailed explaination on the charts of Trader_74. They are excellent.:applaud:

 

I really like to see your knowledge of MP. You seem to have an extended comprehension of the conceps of MP.

 

As I am trying to incorporate MP in my trading strategy in forex (for now) and e-mini future in the future, I really enjoy looking at your posts and videos on market profile.

 

Very much appreciated

 

Sincerely

 

Shreem:)

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  shreem said:
Hello Soultrader, thank for your detailed explaination on the charts of Trader_74. They are excellent.:applaud:

 

I really like to see your knowledge of MP. You seem to have an extended comprehension of the conceps of MP.

 

As I am trying to incorporate MP in my trading strategy in forex (for now) and e-mini future in the future, I really enjoy looking at your posts and videos on market profile.

 

Very much appreciated

 

Sincerely

 

Shreem:)

 

Thanks Shreem. Though I dont consider my MP knowledge extended at all.... traders like Alex Benjamin (alleyb) are the real experts trading solely of MP charts. I grabbed what was useful for me and learned in depth on how to utilize them into trading strategies. I dont think I follow all concepts of MP to the dot... MP helps me create a roadmap for the trading day. This comes in forms of pattern recognition, tails, profile shapes, IB extensions, etc.. But it is still a tool for me as a candlestick & volume chart comes top priority for me. Understanding the combination/relationship between price & volume is far superior that any method in my opinion.

 

Just learn the sections from Steidlmayer and Dalton where they get into profile types/day types & opening types by heart. That information is gold.

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Hi soultrader

the comment was great.thank you very much

it was helpful for me

i am using mp to forcast forex ( i am trading forex GBp/USD , EUR/USD )

i am trying to fnd out a good strategy

again, thanks alot

Edited by trader_74

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Hello Soultrader, thank for the post. You are right, MP should be seen as a tool in one's arsenal. A very important tool which give us a clear map of our trading day. Especially when we deepen the relationship between the local traders (reflected in the IB of the MP) and the other timeframe traders (big players) of the range extension of the MP.

 

I really like the book of MOM from Dalton and thank for the reference on the one from Steidlmayer. Will look into it.

 

Sincerely

 

Shreem:)

 

 

  Soultrader said:
Thanks Shreem. Though I dont consider my MP knowledge extended at all.... traders like Alex Benjamin (alleyb) are the real experts trading solely of MP charts. I grabbed what was useful for me and learned in depth on how to utilize them into trading strategies. I dont think I follow all concepts of MP to the dot... MP helps me create a roadmap for the trading day. This comes in forms of pattern recognition, tails, profile shapes, IB extensions, etc.. But it is still a tool for me as a candlestick & volume chart comes top priority for me. Understanding the combination/relationship between price & volume is far superior that any method in my opinion.

 

Just learn the sections from Steidlmayer and Dalton where they get into profile types/day types & opening types by heart. That information is gold.

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I thought this would be a good place to give my feedback on the free webinar on MP last Monday (that I first heard about in TL). I am putting it here because it was clearly not just about the theory of MP, which it covered in some detail. But, was the most practical learning I have had to date, in really trading MP. (This thread has also been immensely helpful).

 

It was given by Reza of Profile Traders (http://www.profiletraders.com). I had heard of him, but had never heard him speak before. I was more than impressed. The class went from 10 am eastern until maybe 2:30. He covered the basics but went into some detail on trade strategies and entries, early morning trades based on overnight MP data, the clearest explanation I have yet heard on opening types (and how to ID and trade them) and much more.

 

It was by far the best free class on trading I have ever taken. He teaches a 6 hour "boot camp" (regularly I hear) which covers roughly the same material in slightly more detail and some additional material. He charges $275, which seems like a steal, with his level of expertise, the generosity of his giving (he seems like a righteous dude who truly wants to help) and the prices other "experts" charge.

 

In addition, everyone who came to the free class was offered a substantial discount over the already cheap price for the boot camp. I'm taking his boot camp, next Saturday, cause I want to hear more from him and pick his brain with my seemingly endless questions on MP.

 

Reza is a resource that anyone interested in MP might want to check out. I know I sound a bit like a commercial, but this guy impressed the heck out of me, and I wanted to share it with you guys.

 

Bryan

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