[MP] Trading with Market Profile

[MPTrader 10]

Soul, would u mind telling me if u take trades based on LVA or HVA or on the POC ? sometimes i am not very certain if i shd take at the POC as we all know that the market might just rotate ard the POC, but if we take trades at the edge of the value area, we might end up getting the bad side of the trade if it is a range day?

[ckait 10]

heres a thought , if the market opens below value and starts to trade twards VAL take a short trade there if sellers step in , if not take a short at the poc or at any point between if sellers show up. this works out best if it happens within the initial bal

[Soultrader 12]

Soul, would u mind telling me if u take trades based on LVA or HVA or on the POC ? sometimes i am not very certain if i shd take at the POC as we all know that the market might just rotate ard the POC, but if we take trades at the edge of the value area, we might end up getting the bad side of the trade if it is a range day?

 

It wouldnt be correct to state take trades at VAL, VAH, or POC. I simply use these as reference points or support and resistance. The POC I dont use as much since I use a longer term POC to see where price is relative to the control point.

 

I prefer to use market profile based support and resistance compared to other forms of S&R methods. What I am looking at these levels is supply overcoming demand and vice versa. Heres an example of a trade setup on the ES:

 

[ckait 10]

I didnt say take trades there blindly, ordeflow at these areas would dictate if a trade was to be taken.

[MPTrader 10]

was just thinking its real interesting as if it is a range day, not much range extension, we shd fade at HVA and Long at LVA, betting that it will go up and down, playing the range.

 

As what happened to taiwa index today, was a good day.

 

Main question was that, it would be interesting to see if there are any indications when price breaks OUT of value area before u enter a trade....

 

Any idea , any1?

[MPTrader 10]

This would in fact minimse e risk when we take trades at LVA or HVA.

[maildigger 10]

It wouldnt be correct to state take trades at VAL, VAH, or POC. I simply use these as reference points or support and resistance. The POC I dont use as much since I use a longer term POC to see where price is relative to the control point.

 

I prefer to use market profile based support and resistance compared to other forms of S&R methods. What I am looking at these levels is supply overcoming demand and vice versa. Heres an example of a trade setup on the ES:

 

 

Soul,

 

What kind of stop would you use in this setup? What is your target?

[MPTrader 10]

Personally i feel to enter trades via buyers hitting buy and ask is rather dangerous is it not? as that is only current sentiments?

 

Care to enlighten hw u input a price based in market profile?

[Soultrader 12]

Soul,

 

What kind of stop would you use in this setup? What is your target?

 

I normally use stops above/below a pivot or swing high/low. My entry can be within 2-3 ES pts from this pivot.... hence 2-3pts being my typical stop.

 

Target.... I scale out half when i feel price may become rangebound or stop. So basically looking for increase in volume, S&R levels, etc..

 

The final i try to hold on but never really the case as I tend to exit too early.

[firewalker 10]

The final i try to hold on but never really the case as I tend to exit too early.

 

Have you thought about waiting to exit the rest of your position until you get another entry signal (in the opposite direction)?

[Soultrader 12]

Have you thought about waiting to exit the rest of your position until you get another entry signal (in the opposite direction)?

 

No but will test it out as most of my trading is based on reversals. Interesting how I never considered this.

[Northern boy 10]

so in theory... the initial balance represents the day traders play ground, exclusive of long-term trader, and is developped within the first hour.

 

in other words, if no economic news occurs, the price limits defined by the first hour will be prevalent for the majority(%?) of these circumstances.

 

is that what you're saying?

[MPTrader 10]

For ranger bound days, yes

[MPTrader 10]

Care to share the type of entry signals that work for u, soul trader?

[MPTrader 10]

esstentially i am always trying to see if i shd take prices at edge of value area ( in anticaipation of breakout) or at POC (lower risk but whip saw)

[MC 10]

No but will test it out as most of my trading is based on reversals. Interesting how I never considered this.

 

Keep us posted.

On my divergence counter trend backtesting, I often got an opposing signal as the reversal was impending. Then again I found that the false signals often left alot on the table. If there was a clear trendline break I used that as an exit off divergence. If no trendline was holding up I would then use the last swing level as the exit trigger. On a free trade it seems you have to be willing to not pick a top and risk some of the unbooked profit to get the continuation moves which often are quite explosive.

[Soultrader 12]

Care to share the type of entry signals that work for u, soul trader?

 

Hi,

 

I dont necessarily have strict rules on entries like go long at open if....

 

I see how price is reacting relative to volume around these mp levels. Heres a chart I posted in the Live Indices trading thread. The entry is based on volume analysis at support.... also note that Fridays value low was around that area also. Unfortunately I exited early as I went to bed.... should of held till close but never up that late anyway.

 

[MidKnight 12]

No but will test it out as most of my trading is based on reversals. Interesting how I never considered this.

 

Same here soultrader. Because of that I take a dual position. Please allow me to explain in an example with fictitious numbers. Lets say I am long 5C and then I decide that this resistance could be a place that will contain price. I will exit some of the long (we'll say 3C) and now go short 5C. I know what you are going to say...I'm net short 3C and that is true. However, using buttontrader it treats them as separate trades and that means I can manage them separately. It happens quite often that this short entry might only be good for 12 ticks and afterwards the original trade keeps working for new highs or a test of the old high.

 

I'll admit that my decisions are discretionary, but you get the idea....

 

With kind regards,

MK

[MPTrader 10]

Hi,

 

I dont necessarily have strict rules on entries like go long at open if....

 

But sometimes i feel that sell volume can overtake buy volume at anytime though....

 

Had a bad experience today trading taiwan index futures when it trended suddenly downwards through the minus development to the low of the month !!!!

 

luckily i had a stop loss at breakeven to save me when i was just 2 ticks in profit....

[MPTrader 10]

may i ask are u a responsive or initiative MP trader? do u fade or go with breakouts frm value area and ur strategies? mostly it seems that MP is good for reversals

[Soultrader 12]

may i ask are u a responsive or initiative MP trader? do u fade or go with breakouts frm value area and ur strategies? mostly it seems that MP is good for reversals

 

I am mainly a reversal type trader. Ill post a chart this week on a few breakout setups I trade.... but mainly looking for certain reversal patterns to occur at MP and other S&R levels.

[MPTrader 10]

reversal patterns like?

[OAC 10]

reversal patterns like?

 

http://www.traderslaboratory.com/forums/f34/trading-reversals-3913.html

[MPTrader 10]

when in a trade, may i know how u manage ur trade? and hw u trail ur profit? that is something i am struggling very hard persoanlly

[Soultrader 12]

when in a trade, may i know how u manage ur trade? and hw u trail ur profit? that is something i am struggling very hard persoanlly

 

Heres a seperate reversal chart of the KOSPI.

 

 

I usually have a fixed stop in mind... for example the ES will be around 2 pts. If my entry is going to cause me to use a stop wider than 3pts, I will pass on the trade until I find a pullback, etc.. for a more optimal entry.

 

Regarding exits, I scale out on all my trades. The first exit is for around 2 ES pts.. or any hint of weakness. Then I leave my stop at b/e and just manually trail it. If long and price makes a higher low, that would be my new stop point. But again.... I tend to exit way too early on majority of my trades.