Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

alex_laxya

MP for NSE INDEX AND OPTIONS

Recommended Posts

nfweeklyandhourly050309.png

w974.png

 

As mentioned in last post market profile is looking very bearish establishing new lower value areas daily, even rate cuts wont able to boost the prices.This is where MP comes handy, MP allows to see what market is actually telling and help us not to mix our own feelings/impulse to the information.

As mentioned before, trying to add the angle of VIX and option open interest put call ratio in next post ..heading for break ..

Alex

Share this post


Link to post
Share on other sites

I think you cant edit your post after some time... just found i accidentally posted the wrong chart on post no. 25...correct chart shows in post no. 26

Request to moderator, plz delete my post no.25..meanwhile plz ignore that post...

sorry for confusion

Alex

Share this post


Link to post
Share on other sites

I think you cant edit your post after some time... just found i accidentally posted the wrong chart on post no. 25...correct chart shows in post no. 26

Request to moderator, plz delete my post no.25..meanwhile plz ignore that post...

sorry for confusion

Alex

Share this post


Link to post
Share on other sites

Time, price,volume and 4th factor

Lets start from the very foundation of market profile ..

who are the auction partcipants ?

. Local market makers

. Day traders

. Intermediate-swing traders

. Long time frame traders

 

This auction create market-generated information, auction organize and reflect the attitudes of the market's partcipants,thus creating market-generated information.

The key to reading market-generated information is

.Time

.Price

.Volume

This i sthe primary tool of market profile

now there is another time of auction involved ..auction of option buying and option selling..

option sellers are considered as Smart Money, though there r verious contradictory theories, lets not get in to this,

but Indian market is special in this sense, option market hasnt yet developed and there r normally in the month options are liquid and those only of nifty index,

there is still attraction of quick money among this high volatility ( vix)

higher vix means greater fear which by standard mathematical model increase the option premium

This option induced data is very meangful when look in to context of market profile, i am not a great reader of volume distribution but i found option induced information very profitable in my trading...

there ant any secrets in trading and nor i intend to have one, its about the art and how u adjust ur knowledge to earn money, which come by practice..

In this thread, now and then i will try to explain market profile using 4th factor/ dimension as option open interest

i assume every one knows te calculations of option open interest put call ratio which i extensively use in my trades..

here is the chart explaining todays activity ( plz note o.i.pcr is daily ) ..there is a build up of 92 lk o.i. around 2500 pe ( not shown in chart ) and this build up is since last few days, but still oi pcr is decreasing which indicates there is call writing ahppening around resistance zone or u can say most strong value areas,

If 2500 nifty broke ( which we proved mathematically an important psychological area) then there wd be heavy selling from other time frames.

 

vix050309205827.png

w961.png

Share this post


Link to post
Share on other sites

060309161026.png

w975.png

 

Elongated profile with steady distribution, usually such kind of profile is healthy and indicates strength but volume is an issue, b'cuz of sun outage few brokers facing connectivity issues

2500 pe witnessed large activity, o.i. jumped by 12 lk which is again indicates the strength.

Best wishes for weekend

Alex

Share this post


Link to post
Share on other sites

I am not a follower of Elliott Wave theory but BSE's SENSEX (weekly) chart caught my eye for EW formation.

 

Here is SENSEX chart with Elliott Wave and Parabolic Arc pattern. Look for the Symmetry in Wave 3, Wave 5 lengths. Also, Parabolic Arc pattern retraced to 62% of the entire prior move.. Could correct more??

 

** This chart is not MP based chart, but I thought it may be pertinent Indian Markets chart that I follow. **

 

Regards,

Suri

BSE_M_Mar0609.thumb.gif.5a540f30ae2d5381d3c5d41bf610dbe6.gif

Share this post


Link to post
Share on other sites
Hi,

didnt able to post last night, got bz with few things so pardon me ..

To understand the market perfectly yesterday's Market Profile is very important, especially if you are a day trader, it gives a referral point..here is the list of to do list to prepare for next day market open, as said in first post there are no shortcuts to understand the principal -how market behaves -in contextualize way.

 

1>Review yesterday’s profile for clues as to what to expect today. Make

a note of possible trades, based on varying developments.

 

2> Review the overnight markets for any unusual price movement or

early indications for the day.

 

3> Compare the expected opening to the previous day. Is it within or outside

the previous day’s range? Value area? To the upside or downside?

 

4> Relative to the expected opening, identify three references points,

both above and below the expected opening. These could be the

previous day’s high and low, weekly high or low, the top and bottom

of the previous day’s value area, or the high or low of a recent trading

range. (There is no set answer—you should be guided by your past observations

of where price slowed or accelerated, as well as past areas

of heavy or light volume.)

 

5> Note what kind of opening is occurring, as well as what you’d want to

see in order to quickly judge the resulting directional confidence.

 

6> Note whether or not there is clear attempted direction, and whether

that activity is supported by volume.

 

7> Does the market appear to be within balance or out of balance?

 

8> Visualize the remainder of the day. Will it look elongated, squat, fairly

normal like a bell-shaped curve, and the like. Note any unusual shapes

or patterns that may suggest something unexpected is happening.

 

9> Estimate how much effort is being expended to move price directionally,

and note what that suggests about the inventory conditions of

your competitors—too long, too short, above water, below water, etc.

 

10> If there is a major news announcement scheduled, be aware that there

could be unexpected volatility. Let the market provide short-term interpretation

of resulting activity by observing developing structure.

 

Unless the day-timeframe structure is extremely strong and unlikely

to be reversed by such an announcement, we recommend that day

traders be flat in front of significant numbers.

 

trading of NIFTY starts at 6.30 AM(IST) on singapore exchange.Have you tried to check it as it is going to be important in predict expected open as mentioned in your post.

Share this post


Link to post
Share on other sites

Hi

 

I just finished a PHP Market Profile Chart. It is free to use and plots 20 days of 30 minute MetaStock formated data. I also plot clear candle sticks right over the Market Profile data so you can see what really happened in the candle.

 

 

http://www.trading-seminar.com-> Indicators -> Market Profile.

 

 

thanks

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Be careful who you blame.   I can tell you one thing for sure.   Effective traders don’t blame others when things start to go wrong.   You can hang onto your tendency to play the victim, or the martyr… but if you want to achieve in trading, you have to be prepared to take responsibility.   People assign reasons to outcomes, whether based on internal or external factors.   When traders face losses, it's common for them to blame bad luck, poor advice, or other external factors, rather than reflecting on their own personal attributes like arrogance, fear, or greed.   This is a challenging lesson to grasp in your trading journey, but one that holds immense value.   This is called attribution theory. Taking responsibility for your actions is the key to improving your trading skills. Pause and ask yourself - What role did I play in my financial decisions?   After all, you were the one who listened to that source, and decided to act on that trade based on the rumour. Attributing results solely to external circumstances is what is known as having an ‘external locus of control’.   It's a concept coined by psychologist Julian Rotter in 1954. A trader with an external locus of control might say, "I made a profit because the markets are currently favourable."   Instead, strive to develop an "internal locus of control" and take ownership of your actions.   Assume that all trading results are within your realm of responsibility and actively seek ways to improve your own behaviour.   This is the fastest route to enhancing your trading abilities. A trader with an internal locus of control might proudly state, "My equity curve is rising because I am a disciplined trader who faithfully follows my trading plan." Author: Louise Bedford Source: https://www.tradinggame.com.au/
    • SELF IMPROVEMENT.   The whole self-help industry began when Dale Carnegie published How to Win Friends and Influence People in 1936. Then came other classics like Think And Grow Rich by Napoleon Hill, Awaken the Giant Within by Tony Robbins toward the end of the century.   Today, teaching people how to improve themselves is a business. A pure ruthless business where some people sell utter bullshit.   There are broke Instagrammers and YouTubers with literally no solid background teaching men how to be attractive to women, how to begin a start-up, how to become successful — most of these guys speaking nothing more than hollow motivational words and cliche stuff. They waste your time. Some of these people who present themselves as hugely successful also give talks and write books.   There are so many books on financial advice, self-improvement, love, etc and some people actually try to read them. They are a waste of time, mostly.   When you start reading a dozen books on finance you realize that they all say the same stuff.   You are not going to live forever in the learning phase. Don't procrastinate by reading bull-shit or the same good knowledge in 10 books. What we ought to do is choose wisely.   Yes. A good book can change your life, given you do what it asks you to do.   All the books I have named up to now are worthy of reading. Tim Ferriss, Simon Sinek, Robert Greene — these guys are worthy of reading. These guys teach what others don't. Their books are unique and actually, come from relevant and successful people.   When Richard Branson writes a book about entrepreneurship, go read it. Every line in that book is said by one of the greatest entrepreneurs of our time.   When a Chinese millionaire( he claims to be) Youtuber who releases a video titled “Why reading books keeps you broke” and a year later another one “My recommendation of books for grand success” you should be wise to tell him to jump from Victoria Falls.   These self-improvement gurus sell you delusions.   They say they have those little tricks that only they know that if you use, everything in your life will be perfect. Those little tricks. We are just “making of a to-do-list before sleeping” away from becoming the next Bill Gates.   There are no little tricks.   There is no success-mantra.   Self-improvement is a trap for 99% of the people. You can't do that unless you are very, very strong.   If you are looking for easy ways, you will only keep wasting your time forgetting that your time on this planet is limited, as alive humans that is.   Also, I feel that people who claim to read like a book a day or promote it are idiots. You retain nothing. When you do read a good book, you read slow, sometimes a whole paragraph, again and again, dwelling on it, trying to internalize its knowledge. You try to understand. You think. It takes time.   It's better to read a good book 10 times than 1000 stupid ones.   So be choosy. Read from the guys who actually know something, not some wannabe ‘influencers’.   Edit: Think And Grow Rich was written as a result of a project assigned to Napoleon Hill by Andrew Carnegie(the 2nd richest man in recent history). He was asked to study the most successful people on the planet and document which characteristics made them great. He did extensive work in studying hundreds of the most successful people of that time. The result was that little book.   Nowadays some people just study Instagram algorithms and think of themselves as a Dale Carnegie or Anthony Robbins. By Nupur Nishant, Quora Profits from free accurate cryptos signals: https://www.predictmag.com/    
    • there is no avoiding loses to be honest, its just how the market is. you win some and hopefully more, but u do lose some. 
    • $CSCO Cisco Systems stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?CSCOSEPN Septerna stock watch for a bottom breakout, good upside price gap
    • $CSCO Cisco Systems stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?CSCOSEPN Septerna stock watch for a bottom breakout, good upside price gap
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.