[maildigger]

Originally Posted by tony1d »

No, i used the previous days YM value area and POC points from mypivots.com. Once prices fall back into the value area as the gap is filling, they oscillate all day long within the value area. Locals testing the high and low value areas looking for initiators. I used 13676 VH, 13656 and 13648 for POC and VL.

tony

Tony,

if price is above VH ... would you initiate only long trades in that case?

[tony1d]

When prices are outside the value areas, say above and remaining there, initiators are active and a new value area will be developing. I do not trade the developing value area but i will tend to look for long trades. On a rejection back into the value areas, i look for the 80% rule for prices to test the lower value area or at least test the POC. Market Profile is not an indicator tool like MACd etc. It gives you clues as to the where the market may be going, it gives you strong S/R areas and potential trading ranges when inside the V/A and clues you in to whether the trading day will be a trend or non trending day. It most importantly tells you whether the market is in or out of balance, the further price is away from the V/A the more out of balance the market is and other timeframe players are in control. Inside the V/A locals are in control and market is more in balance. On those days I'll look more to scalp in between the lower and upper V/A with POC as my taking of partial profits. Been working well for me as part of my trading plan.

[maildigger]

Tony, you have the information you get from MP, but do you look for certain candlestick patterns to enter those trades ?

[waveslider]

Man, if this morning wasn't the most amazing advertisement for the rejection of the previous day's value area (in YM)... I couldn't find a better one.

[ammo]

i use mp on trending days,it shows where the pauses or temporary congestion will be ,the pov i call the nipple is always a pause area good for day trading,wait til it gets there to scale out

[tony1d]

I daytrade and use 133t charts for the YM mainly and 55t charts for entrys. Candle patterns become more unreliable as you go to shorter and shorter timeframes. i only enter trades when the 55t chart is printing a candle in the direction of my trade. I'll get my setups on the 133t and confirm using 13min and 60min charts to see whats going on in the longer term. I try to trade in the direction of the dominent trend based on the longer timeframes. Most of my losing trades are countertrend trades.