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Old 02-05-2007, 06:24 PM
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Re: Market Profile Trading Concepts

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I'm also reading Mind Over Markets. A question I have is, do you focus on the value area from the previous day, or do you also pay attention to the value area that develops during the day? Of course right at the start of the day you would use the value area of the previous day but as the day develops, the current day's developing value area becomes more useful than that of the previous day I've found. I don't know if that fits in with standard Market Profile theory.

Enthios.com has done extensive work on the idea that price wants to go back and revisit the previous day's POC. This fact is the basis of his Universal Method. Also the 80% rule trade (see trading naked), which states that if price exits the Value Area and then re-enters, 80% of the time it moves to the opposite side of the Value Area. This is based on yesterday's Value Area not intraday value. Although it may be true for intraday. I would start out with yesterday's levels . Of course, timeframe traded could cause a need for a more "finite" look.

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