Mentally using Mp

[shreem]

Hello Soultrader, very happy to be joining this great community of trader her.

I have a little question for you. On the link that that you have put on your post below, do you think that the daily values of the British Pound, Euro FX or Japanese Yen future contracts can be applied for the same currencies on the spot forex which is what I trade at the moment?

Thank you in advance for your answer

Wishing you a very good day and thank for your excellent videos

Shreem

	Quote:	Soultrader
	I draw horizontal lines on my candlestick charts for visual purposes as well. You can simply obtain the MP data at: Daily Notes for Day Traders | Pivot Points for Index Futures and more

[Dogpile]

here is how you can eyeball a simple market profile concept.

pull up a 30-min chart for pit session only. draw a horizontal line on the chart that spans that day.

place the line at the price level that touches the most bars. this is the POC and can be considered that days 'accepted price'... if multiple prices are touched an equal number of times then take the midpoint of those prices.

if 2 different points are far away from each other but have similar number of touches, I exclude the opening 30-min bar and re-calculate. The opening 30-min bar is generally a period of price discovery.

if you cannot draw a line through at least 6 bars (excluding the opening 30-min bar), then no price was accepted and you consider this a 'trend day'.

I consider the market to be 'in balance' if a horizontal line can touch 6 bars.

Watch how often the market moves just prior to enable that 6th bar touch --- the market will often make a move before 6 bars are touched.

Don't fade an initial push away from value (the POC)... go with it. But don't chase it either (if you miss it, you miss it). The 1-2pm EST is common time to break away from a balance. you can try to catch a trending move here.

Personally, I like to fade a morning move away from previous day POC if you have already had a 2-3 day directional move --- odds are now on 'responsive players' to come in and knock it back the other way -- for a flush -- not necessarily a reversal. If the market balances during the day and then breaks away from this balance, this is considered 'initiative activity' and you try to go with it -- this is tricky though.

The biggest trap is when the market balances at a given price and then very late in the day spikes away from this balance. This is generally a trap that will see a reversal overnight or the next day back to the Point of Control.

[Anonymous]

I didn't know where to post this so this seems like as good a place as any. It is in the Market Profile section yet broad enough for me to go on a slight tangent.

What I have posted here is a Pivot Profile of the Euro for Friday the 25. What That means is this Profile is calculated at the close on Friday and will be used for trading on Monday Jan 27,2008.

With my tweaked version of Mark Fisher's Pivot Range, I have tried to create a tool that will closely follow Market Profile. In other words, without actual volume at price data or TPO data, create a similar profile of where price traded on the day.

Check out the chart.

In a complete profile:

1. Deviation Range High to Deviation Range Low (pink) is the value area. Like Market Profile, it is believed that one standard deviation of price action is contained with this range. Technically one standard deviation is 68. something but most people just round up to 70%.

2. The next range is the Reaction Range. Which goes from the Reaction Range High to the Reaction Range low (light purple). This range contains a bit more of the days action: 80%

3. The Extended Range which is from Extended Range High to Extended Range Low (dark Purple) captures 95% of the days price action.

4. Of course, from high to low (black lines) we have the day's entire range.

Now this is a static formula so there are times when certain lines must not be used as they fall outside of the range. This is what we see here. In this case we still have the same ranges but we must adjust them. In this case the Deviation Range Low is the low for ALL the ranges. So we still have an Extended Range, it simply goes from Extended Range High to Deviation Range Low. The Reaction Range goes from Reaction Range High to Deviation Range Low. And of course the Deviation Range remains from Deviation Range High to Deviation Range Low.

By simply "eyeballing" it you can see what a good job the Profile does in defining the areas of the trading day. Also not the amount of touches and hit off of the various lines. One of our main contentions is that if an area was important in today's trading, it will be important in tomorrow's trading (all things being equal). Therefore, we can use these lines as likely support/resistance areas for the next day. Like a Market Profile, we expect price to retouch the previous day's POC (yellow line).




The original idea was to create a tool to simulate the information found with Market profile. According to Mark, his piovt range is a close approximation of said information. But I now find myself thinking it really doesn't matter how close to a Market Profile value area my numbers are. Why? Because the Pivot Profile can stand on its own. It provides a concise prism through which to view the market.

[monad]

	Quote:	Soultrader
	I draw horizontal lines on my candlestick charts for visual purposes as well. You can simply obtain the MP data at: Daily Notes for Day Traders | Pivot Points for Index Futures and more

Soultrader,

are you referring to Market Profile POC, value area etc or the traditional pivots, because the above site(MyPivots) provides values on the latter.


Do you know any site which posts POC, Value area info. on various index and currency futures.

[Soultrader]

	Quote:	monad
	Soultrader, are you referring to Market Profile POC, value area etc or the traditional pivots, because the above site(MyPivots) provides values on the latter. Do you know any site which posts POC, Value area info. on various index and currency futures.

Hi monad,

Mypivots used to post pivot levels as well as mp levels. Not sure if they still do though.

I dont know of any other site that posts these levels.

[heretodaygone...]

Does anyone know if anybody has come up with a 'bell curve type bar' based on mp? My point being if one can define a price pattern, then one can assume that a bell curve pattern could also exist. Confluence (the new "in" way of looking at price ) of the patterns may strongly influence direction.

[darthtrader]

Very interesting PivotProfiler. I've tried to read the Logical Trader a few times but never quite get the hang of it. I would be interested in knowing if/how you use the opening range from Fishers ideas, that just seems like something that could incorporate well with the intial balance MP wise.

[Anonymous]

Monday Jan. 28,2008:

Pretty strong trend day once we got started. The day started with some sideways action. Price was moving sideways between the Deviation Range Low (pink line) and the Harmonic Range Low (pink dotted line).

I can toggle on and off the Psychlevels and they are on here. These are just certain levels like "00" or "50". So for the Euro a psych level would be 1.4700 or 1.5000. I was just introduced to the idea of using these levels as such and am interested in seeing how they help. At the very least, they can serve to remind me where NOT to place stops.

[monad]

pp,
Great Chart,
Will have to take up trading forex or currency futures full time, they do trend well, don't they..

BTW have you tested your calculated MP pivots or index futures such as YM, ES , Dax etc.,

Also what is Harmonic Range High/Low and how were they calculated.

[namstrader]

	Quote:	monad
	Soultrader, are you referring to Market Profile POC, value area etc or the traditional pivots, because the above site(MyPivots) provides values on the latter. Do you know any site which posts POC, Value area info. on various index and currency futures.

http://www.mypivots.com/forum/topic.asp?TOPIC_ID=2531

Here I get the MP's VAH POC VAL for the: ES,NQ,YM, ER2