for Monday 0305

[dalby 10]

One of the things i look for is confluence - key price areas that are important on several timeframes and/or with different methodologies (market profile, floor trader pivots. etc.

 

I have attached a 2 day MP chart with the key price level 12167 highlighted.

 

This is the VPOC (Volume based POC) from Friday. It is also the daily floor trader pivot level for Monday.

 

The time based POC is just below it at 12159.

 

If we make a composite chart of the new balance area since our big selloff, we also see that 12160 area is the lower edge of the volume based value area.

 

 

And when I draw a time based value area on that composite, I get the exact same #'s

 

What this says to me is pay attention to this level.

 

If price does not gap above it on monday, I will be looking for shorts as price approaches this level, if consistent with market internals (bid/ask pressure, tape, etc.)

 

Just my thoughts

[MrPaul 10]

Dalby,

 

Great post, how do you like to judge the degree of confluence? Such as If you have a sample of 12200,12225,12201,12250 etc. How do you define the confluence? Chart them all and use the mini clusters? Or just the ones that are within X amount of points from each other?

 

I keep my cluster levels to a max of 3.5 point separation on the Russell.

 

[dalby 10]

Thanks .

 

I don't have a hard and fast rule about how close a price level has to be to another to be confluent, but I will take notice if it is within 10 pts on the dow.

 

as volatility has risen these last few days, my response has/will be to ratchet down size and increase stop size somewhat, to compensate for the greater range.

 

the price levels i use are very basic - single prints, globex low, globex hi, daily low, daily high, val, vah, poc and floor trader pivots (day, week, month).

 

it is a bonus if i can get some added confluence on price action, like a tick extreme on a relatively neutral day, into an area of resistance and seeing some follow through with heavy selling on the bid. another example would be when price makes new highs into a resistance area, but the Adv/Decl is not making new highs.

[TinGull 10]

Excellent stuff, dalby. This is exactly how I trade, too.

 

One thing that I took special note of in yesterdays action was the single prints inside the profile of Thursday. Note how the POC (both time and volume) are right there. Price loves that spot as well as where C came down to the B period and stopped. Those two were great levels yesterday afternoon. I never had really put importance on single prints until yesterday.

 

12117 as well as 12254 will be important levels to watch. 12254 is the area that stopped price in 2 auction rotations and and 117 is a single print area.

[dalby 10]

yes. i agree. i have that single print area filled in from thur as well.

 

is that investor R/T's Market profile? I am currently using MarketDelta's, but looked at their website per the recommendation (thanx) and see that they use the EXACT same format, one even licensing the same to the other.

 

Im probably switching to Investor RT for my MP next week. Ill get TS to use the tickdelta indicator here . I think that is pretty robust in replicating the data in MD's footprint charts.

 

I do a lot of replay function in my MP charts, and I agree that single prints are to be noted. Even if you don't use one for an entry, they are often logical place to set price targets if already in a trade and price is stampeding towards that level.

[TinGull 10]

dalby,

 

yes, IRT MP charts They are the exact same charting platform. The same guy writes the code. And I'm excited to watch more on the single print action. I love learning new things!!!