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What is so valuable about MP and what are you using it for? Please be specific. For me, MP doesn't even make any sense from a logical point of view. Why does it matter at what time interval volume was formed? Isn't it completely arbitrary? |
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This is because you have not studied mp well enough to be able to use what mp is providing. More than the strategies revolving around mp... you need to first grasp the mp concepts. As traders use candle patterns to trade... mp can be used in the exact way. Familiarize yourself with it and you can see what type of profile we are likely to develop. If you can see the type of day we are likely to have wouldnt this be a tremendous edge? You can easily build strategies around it.
MP also helps show participation by the longer timeframe. This is critical information as the longer timeframe traders are the ones that create trends. Compare Trader A who is familiar with mp and Trader B who is not aware of it.
Trader A sees a narrow initial balance and plans a trade based on range extension. So basically he is trying to play a momentum of the IB breakout. Trader B is not aware that a narrow IB is easily upset. Hence he tries to fade the test of the low/high only to see price blow right past his entry point to breakout of the range.
Another example.... lets say the markets rallied strongly into the close. However Trader A spots that value placement is still lower compared to the previous day. This offers him warning signals that the late afternoon rally may have just been short covering. Hence, the following day he focuses on the short side as he thinks price is weak. On the other hand, Trader B assumes that the late afternoon rally is bullish can continues to trade from the long side the following day just to see price make small bounces and right back down.
These are just simple examples of what market profile can show a trader. However, knowing mp will not make you profitable. It is how you develop strategies around mp which will put the odds in your favor. A trader without a plan and strategy is destined to fail. MP simply allows me to create a roadmap for the trading day.... its like having a map in a new location. You can guide yourself alot easier than the person without one.
None of this will make any sense if you do not understand mp to begin with.