Welcome to the Traders Laboratory.

Market Profile Are you a market profile trader? Post here.

Reply
Old 09-21-2006, 05:12 AM   #1

Soultrader's Avatar

Join Date: Aug 2006
Location: Tokyo
Posts: 3,659
Ignore this user

Thanks: 539
Thanked 1,459 Times in 507 Posts

Special Situations: 3-I Days

A 3-I day includes an initiative buying tail, initiative buying TPO's, and initiative buying range extension. What makes this characteristic interesting is that prices tend to open within or above value after a 3-I day.

A 3-I day offer traders the opportunity to hold a trade overnight to exit at a profit the next trading day within the initial 90 minutes. In Mind Over Markets, Dalton mentions that 3-I Day offers a high probabilitytrading setup that almost has to be taken.

I am curious to know different strategies people may use to trade this setup. What I am most interested is hearing about setups that deal with the following days opening action. Thank you.
Soultrader is offline  
Reply With Quote
Old 09-21-2006, 09:07 PM   #2
ant

ant's Avatar

Join Date: Sep 2006
Location: USA
Posts: 424
Ignore this user

Thanks: 22
Thanked 319 Times in 83 Posts

Re: Special Situations: 3-I Days

Can you clarify what initiative buying TPO's are? I never full understood this. It sounds different than the TPO count that is used in rotating markets to determine whether buyers or sellers are in control. That is, if the number of TPOs below the POC is greater than the number of TPOs above the POC, then the buyers are in control (reverse for determining seller control). Thanks.
ant is offline  
Reply With Quote
Old 09-21-2006, 09:19 PM   #3

Soultrader's Avatar

Join Date: Aug 2006
Location: Tokyo
Posts: 3,659
Ignore this user

Thanks: 539
Thanked 1,459 Times in 507 Posts

Re: Special Situations: 3-I Days

Hey Antonio,

I think you are correct about TPO counts. Initiative buying TPO's are simply TPO's favoring the trend. This would mean more TPO's above the POC for an uptrend and more TPO's below the POC for a downtrend.
Soultrader is offline  
Reply With Quote
Old 09-21-2006, 09:57 PM   #4
ant

ant's Avatar

Join Date: Sep 2006
Location: USA
Posts: 424
Ignore this user

Thanks: 22
Thanked 319 Times in 83 Posts

Re: Special Situations: 3-I Days

No wonder I couldn't find too many examples of 3-I days. Below is a chart with an example of a 3-I day. I just want to make sure I have it right, since I would like to be aware of these days when they occur.

Special Situations: 3-I Days-3-i-day.gif
ant is offline  
Reply With Quote
Old 09-22-2006, 08:17 AM   #5

Soultrader's Avatar

Join Date: Aug 2006
Location: Tokyo
Posts: 3,659
Ignore this user

Thanks: 539
Thanked 1,459 Times in 507 Posts

Re: Special Situations: 3-I Days

Nice chart That is precisely a 3-I day. It is a great example because price usually trade within or above value for the first 90 minutes of trading. I am trying to work on a strategy to trade this type of day since it offers a high probability trading opportunity to the long side.

Note: How do I spot out a single print tail on the MP indicator you designed?
Soultrader is offline  
Reply With Quote
Old 09-22-2006, 09:24 AM   #6
ant

ant's Avatar

Join Date: Sep 2006
Location: USA
Posts: 424
Ignore this user

Thanks: 22
Thanked 319 Times in 83 Posts

Re: Special Situations: 3-I Days

Single prints will show up as two consecutive price levels with a single TPO. each. Buying range extension are two consecutive price levels with a single TPO above the IB (so this could show up in the middle of the distribution). On a 30min chart, just look at the price levels with one TPO which is a line that extends to the next bar. See the chart above for an example.
ant is offline  
Reply With Quote
Old 09-23-2006, 03:10 PM   #7
ant

ant's Avatar

Join Date: Sep 2006
Location: USA
Posts: 424
Ignore this user

Thanks: 22
Thanked 319 Times in 83 Posts

Re: Special Situations: 3-I Days

Looks like Friday was a day after a 3-I selling day in the YM...

Special Situations: 3-I Days-ym-3i.gif
ant is offline  
Reply With Quote
Old 09-23-2006, 10:18 PM   #8

Soultrader's Avatar

Join Date: Aug 2006
Location: Tokyo
Posts: 3,659
Ignore this user

Thanks: 539
Thanked 1,459 Times in 507 Posts

Re: Special Situations: 3-I Days

Very powerful information Antonio. This is because I was waiting for the markets to bounce after it opened right below the value low pivot on Friday. I eventually went short at the break of the 9/21's low.

However, going short right at the open would of offered a high probability trade. I will be studying this type of day carefully to see what kind of setups I can take the following day after a 3-I day. Thank you for this.
Soultrader is offline  
Reply With Quote

Reply

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:

Similar Threads
Thread Thread Starter Forum Replies Last Post
Roll Over Days Soultrader Futures Trading Laboratory 22 12-08-2011 09:44 AM
Rangebound & Choppy Trading Days Soultrader Technical Analysis 1 08-23-2006 12:04 AM

All times are GMT -4. The time now is 07:19 AM.
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
2006-2011 Traders Laboratory, All Rights Reserved.