[MP] Trading with Market Profile

[[MP] Trading with Market Profile]

Anything can be a clue. Do you mean in terms of whether we are trending or bracketing? I think if you are talking about this, it's quite clear from a simply looking at a longer term chart. However, what is extremely important is change. To know that the market has moved from trending to bracket or vice versa early on, can save and make you a lot of money. Something to look out for here is how agressive is the market and how is it reacting to previous levels. If what you are seeing is unexpected, change may be taking place.

 

responsive is where we need to fade the extremes & initiative is where we need buy highs & sell lows. my question here how come we can conclude market is responsive so we need to fade the extreme or market is in initiative to trade breakouts? when market turn into responsive to initiative & vice versa?

 

regards

[[MP] Trading with Market Profile]

thanks for write ups.

 

what are the clues to find what market are we trading? like responsive or initiative?

 

 

regards

[[MP] Trading with Market Profile]

Chart from January 4, 2008:

 

 

Profile resembles that of a Normal Variation Day in which the range extension is double the initial balance. Notice how range extension from C period down to K period is almost the same as the range of A-B period.

 

Normal Variation Day indicates 30-40% market activity controlled by loger time frame market participants. "b" shaped profile hints of long liquidation. Key question will be "Is the short term selling temporarily over?"

 

IB Rejection vs Acceptance

 

Knowing the type of market you trade whether it be reponsive or initiative is important in developing strategies under the IB breakouts. The chart above shows multiple attempts by D-J period to trade back up into the initial balance. However, price is rejected creating lower value placement. Price acceptance below the initial balance is showing further weakness.

 

My bias will remain for price to trade in this newly developed value area so will look for short opportunities above value. Will post a few charts later as the markets open to show possible short setups.

 

@soultrader.

 

Thanks. Gr8 thread for Market profile indeed.

 

How to say its a responsive or initiative market? Hope responsive selling also mean Initiative buying and vice versa ..

 

 

Regards

[Volume: ARCHIVE]

Hi Db,

 

Here is the chart with line and vol + 2 MA (I cannot able to plot 1 MA). What are things I want to see in the below chart.