[dandxg]

I have studied MP and there are some things that I could never figure out. Maybe some nice people can answer them?

1. Why is price attracted to a balance area, a high volume area? I have never hand anyone explain that logically. Is it because it needs a re-test? Because price has traded there? To me it makes sense that if there is a high volume node is at the high price then it won't retest there because there was a lot of selling at that high.

2. What about the subjectivity with MP. You have splits, merges, profile, default 30 min, etc? On ET a guy just mentioned you could have seen on Cisco futures 20 day chart that there is resistance at this level and this level. 20 days charts never heard of such thing in MP? Most seem to advocate the 30 min profile? This is what lead me back to Wyckoff and VSA. I just couldn't figure out how to deal with what seemed so much subjectivity. Not that Wyckoff and/or VSA are perfect by any means.

3. When you are looking at MP and you see some high volume nodes and no volume profile in between them I have heard people rationalize that its going to move between there because there is nothing to stop it. Then price moves away from one of the two high volume nodes and moves back to it its because high volume nodes act as magnets? Huh?

I believe MP to be a solid method, I would and do appreciate some feedback to my questions.

Good trading to all. Happy Holidays.

Dan

[Mustang-]

yeah I can understand your wanting to dig deeper...

20 day prfoile represents one month, its fairly common to do a monthly profile.
just keep in mind Markets are not rational/ logical etc..

[dandxg]

Originally Posted by Mustang- »

yeah I can understand your wanting to dig deeper...

20 day prfoile represents one month, its fairly common to do a monthly profile.
just keep in mind Markets are not rational/ logical etc..

Kudos, I didn't think about the obvious 20 day in a trading month. Logical enough. Look forward to other constructive feedback.

[klsanda]

Try looking at the MP while thinking it is moving from balance to imbalance and back to balance.
Balance = congestion = less risk trading.
Imbalance = trending = higher risk trading

[hegh]

hello

it has nothing to do with risk.
Whether you are in the range or in Trend, the risk exists.
Balance, the market has found a equilibrium point.
The Imbalance, the market has found a new reason to get out of range and find a new equilibrium point.

[klsanda]

where did I say risk did not exist?

[dandxg]

Thanks, I was originally drawn to MP looking for a better S/R. I guess its like any other form of trading different viewpoints to the same picture.

[matinthehat]

Originally Posted by dandxg »

Thanks, I was originally drawn to MP looking for a better S/R. I guess its like any other form of trading different viewpoints to the same picture.

I started to look at MP and volume at price to find better s/r, but it actually led me to look at price in terms of brackets, and now i just outline the ranges and these work out to be pretty accurate s/r levels. Drawing ranges sure helps you to see the important levels and ignore the noise, and as a beginner i would recommend it to anyone. By the way, this works in all timeframes.

P.s. I have a journal over at www.priceaction.net if anyone wants to see more of what i mean by price brackets.