ES Analysis for 10/03/06

[Soultrader]

Doing your homework and having a trading plan is soo important

I also find premarket information crucial to understand the direction of the markets.

I love your analysis Antonio. Possibly because I am a huge fan of market profile. I'll post one up for tomorrow later on.

[budman]

	Quote:	Soultrader
	Market profile is designed to be used for 30 minute settings so I would recommend it. I personally use 30 minute settings with a regular trading hour chart. For the YM, the opening would be at 930eastern and close at 5pm eastern. For the ES it would be 930 to 415.

Hmmm. You prefer the trading hours instead of the 24 hours. Interesting, especially where you value pre-market data. I'll give that a shot, obviously it's working for you.

Thanks again.

[ant]

	Quote:	budman
	Hmmm. You prefer the trading hours instead of the 24 hours. Interesting, especially where you value pre-market data. I'll give that a shot, obviously it's working for you. Thanks again.

I use Market Profile the same way Soultrader does. Market Profile uses 30min intervals because that is roughly how long it takes for new information to be absorbed by the markets. Market Profile can be formed in one of two ways, using TPOs or Volume. I would only use TPOs for regular trading hours (i.e., US day session) because of the thin volume during trading at other times. For 24 hour markets, like the CME Currencies (Euro, Yen, etc.), I would actually use all 24 hours but use a Market Profile using Volume (similar to the LDB), not TPOs. I would also compare the daily Volume Profile against the Market Profile using TPOs because sometimes they differ in a meaningful way. For those who use TradeStation, the Matrix provides a Volume Profile. Very useful, IMO. See example of the Matrix with the YM below.

[budman]

I see ant. I have been using it through Esignal. I'll change a few settings. I appreciate your help. Market profile is new to me, but it seems like a great tool.

Thanks again.

Budman