"Globex" or "Daily Session" Value Area / POC for Trading?

[Mel_Function 10]

Hi Guys,

 

I've discovered the MP concept a few months ago and still learning how to use it for my trading. Most of the time I use the pre-day Value Area / POC in my charts. I would like to know which calculation for the VA / POC you guys prefer, the complete 24h Globex Session or the normal "daily session"?

 

As everything in trading I noticed that some day the Globex data has better results, the other day the Daily Session calculation of VA and POC works better.

 

Thank you!

[omni2006 11]

i don't pay much attention to overnight profiles or pocs. even though the globex session is 2.5 times the RTH session, volume is usually about 20-25% of RTH. i do want to know the overnight range and any significant reference points (i.e. reaction to news events or reports, etc). otherwise, i rely on the daily RTH profile.

 

hth

[BlowFish 10]

Or use volume profiles and slice and dice how you like.

[PeXiS 10]

Hi All,

 

I use volume profile for the 24h session and market profile for daily session. In this way I can see the volume traded during the 24 hours and its relevant points (VA, POC etc). The daily session is more relevant if you use the market profile, during the first hour of the session you are given a high/low that with 95% chances will not be broken.

 

During the daily session you have 2mln volume traded while from midnight to the open about 140k.

 

:-)

[NoSquigglyLines 10]

The daily session is more relevant if you use the market profile, during the first hour of the session you are given a high/low that with 95% chances will not be broken.

 

I don't know the stats or what market you refer to, but I would suggest the opposite is true i.e. majority of the time the high or low from the first hour will be broken.

 

If you mean that it's likely one of the extremes from the 1st hour will hold then I would agree to an extent but not anywhere near 95% of the time. For example, there is a post on TL somewhere that suggests that the high/low for the ES is made in the first hour 66% of the time.

[PeXiS 10]

yeah, this is due to my bad English. I meant that in many days the high or low traded during the first hour session gives you a solid support/resistance, this is simple in words but not that easy for me, for example, to find it out during the live session. Studying the mps at the end of the session it has a quite high probability to happen, better if confirmed by long buy/sell tails, minus etc.

Thanks for your comment :-)

[email 10]

Hi guys,

Glad you started this thread; most of the big time traders I know of say that they get their levels from the Big S&P and Dow.

Cheers,

email

[SunTrader 10]

I think you are talking to the wrong "big" traders since the big contracts have less cumulative volume than the mini contracts nowadays so it is the small leading the big and not the other way around.

[cleon 10]

As everything in trading I noticed that some day the Globex data has better results, the other day the Daily Session calculation of VA and POC works better.

 

Thank you!

 

That's why many people keep both profiles up at the same time.

[AldPixto 10]

When I am thinking "Market Profile" then I use the floor trading hours. Things like Initial Balance and Settlement make sense when applied to a Market Place driven market (markets that open and close). I do most of my MP thinking looking at end of day charts for important price levels for the next days trading session.

 

While trading I use Volume@Price (Market Delta Footprint charts) set to Globex hours, but I always keep in mind what hours a given commodity has the most volume. The most volume almost always coincides with corresponding floor hours. I have observed some markets (e.g. ES, QM, and YG) can get significant volume an hour or two before the floor opens when there is significant news.

[cleon 10]

if you don't mind me asking, how do you apply it (if at all) to currencies?

[AldPixto 10]

if you don't mind me asking, how do you apply it (if at all) to currencies?

 

Interbank forex has no hours and no centralized reporting of volume.

 

[1] what session time

 

What hours is the market most active?

I'd want to look at a histogram of trade activity vs time-of-day and pick the busiest times, or conversely find the quietest time as the closed-time.

Or I'd use the globex hours for the CME exchange-based currency futures.

 

[2] what volume

 

If my data provider reported trades but no volume, then I'd use tick volume as a proxy for trade volume. If I only had price quotes but no idea where trades were executed, then I'm severely limited in understanding the market from a value perspective, I wouldn't know the POC or the volume weighted mean.