Hi Winnie,
I'm going to talk about the YM only since this is all I trade at the moment. On Tuesday, Oct 24, we had a small victory by the bulls as the markets closed slightly higher than the open.
However, I dont quite like to apply the last 30min action into the final market profile structure. If we take a look at a profile chart, the market is in complete balance with overlapping value from 10/23. We broke above the 12100 mark and after the second day above it we now see a clearer picture of the markets. It seems like there is price acceptance in this new zone.
I wouldnt necessarily say there is complete buying control.. more like balance. So based on this information what you need to do is develop a trading plan. Where is a good buying point? Shorting point? Should I play the ranges? Or should I play the breakouts?
Trading requires creativity but theres a limit to what type of setups you can develop. Also don't apply market profile word by word from the textbook. Play around with it and be creative.
Okay, going back to the chart. I see several opportunities. First: the 10/23
VAL looks yummy. Possible bounce? Or play the breakdown to 11200?
Second: Notice the point of control of 10/23 and 10/24. They are very close to each other. I like to refer to them as cluster zones. So if price bounced off the 10/23
VAL, I would look to exit at this cluster zone around 12155 - 12160.
Third: Are we likely to see price consolidate a little more? If so, fade the
VAH or perhaps the 10/24 high. If not, play the breakout of the 10/24 high.
This is an example of understanding how to filter pivots. The 10/24 high is right above the
VAH. In my opinion going long on the break of the
VAH is risky.
This is just a basic method to develop a simple trading plan. Now do you see why I need to do my homework? Also dont think this is all I do. I analyze the daily charts and intraday charts as well. I just wanted to show you what I see just by glancing at the market profile charts.
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do we need to have a fix view on the market ? |
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Bad idea... good to hold some kind of opinion but divorce your ego from the markets. You are trying to make money, not trying to be right. Stay flexible and trade as if you were surfing. Ride the waves and dont fight it.
Btw you can just call me James
Hope this helps.