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.

Stockaddict

Market Profile Question

Recommended Posts

Are both the volume histogram and VWAP used on the RTH only ? Are they used on the Globex as well? Is one more reliable than the other. Thank you.

 

Just to get you started and because Im not a user of either, I would suggest that you wait for some additional responses form those that are hard core users of such or do some searches using the search box at the top right corner.

 

Almost all the traders that I kow that use MP and/or WVAP the majority use the RTH i.e. the pit session time span. For example on the east coast for the Emini's would correspond to 930-1615.

On certain occasions, when we have a majore market report at 830 est then they will use both the pitt session and the overnight session charts.

Share this post


Link to post
Share on other sites
Are both the volume histogram and VWAP used on the RTH only ? Are they used on the Globex as well? Is one more reliable than the other. Thank you.

 

How would you define more reliable? Reliable in what sense? What do you want to get out of using it and what is important for you? Do you think overnight action is important or not?

 

I know not an answer you were looking for, but many times I find that by the time I can clearly define my question, that I don't need to ask it anymore and already know the answer.

Share this post


Link to post
Share on other sites
I see no reason why a forex future should provide a valid volume profile anyway. Not so sure about the TPO letters though.

 

 

Just consider the possibility of the tail being used to wag the dog ... and what that might do to volume in futures vs real volume in forex vs sum total volume while any such game was played. I think this tends to be a micro effect rather than longer term though.

Share this post


Link to post
Share on other sites

I think the overall idea is that overnight action is important but is created by weaker(in the sense that they won't hold as long) players. Also, it depends which markets you are looking at. For example, if you are trading equity index futures, is the price going to be an accurate reflection when the underlying stocks are not actually trading?

Share this post


Link to post
Share on other sites
I think the overall idea is that overnight action is important but is created by weaker(in the sense that they won't hold as long) players. Also, it depends which markets you are looking at. For example, if you are trading equity index futures, is the price going to be an accurate reflection when the underlying stocks are not actually trading?

 

Negotiator, that sounds a little like the teachings of Jim Dalton. Forgive me if I am wrong about that.

 

I did a ES study of overnight vs RTH vs buy and hold and found that, in what I would categorically call a bull market or a bear market, the bulk of the move in the direction of the trend occurred in the overnight. Put another way, you could take a position at the the open of the overnight, and close that position at the open of the RTH and be better off than trying to do the same with the RTH. Overnight vs Buy and hold was mixed. It told me that the move frequently occurs in the overnight and profits are taken in the RTH. Basically, the RTH traders end up holding the bag for the overnight traders.

 

It wasn't a rigorous study, but it was enough for me to conclude that Jim Dalton didn't know what he was talking about.

 

Overnight traders tend to be the foreign trading desks of the big names that we know and love.

 

 

MM

Share this post


Link to post
Share on other sites

I know some Dalton. However, the idea is not purely the reserve of Dalton. It is certainly true that more and more, moves will happen overnight and often profits will be taken during the main pit session. However, if you look what happens when those moves happen and the positions are compromised, it's still pretty clear that they are weaker players. Advantage is taken overnight when the likely move for the day session is fairly predictable. Imo.

Share this post


Link to post
Share on other sites
On trend days I have problem with MP due to waiting for the extreme or poc/vwap rather than the edge or live lvl, 1 std from vwap. I know they're statistically low % of days that actually trend in a month yet seem to occur much more frequently in these volatile times. Any input would be greatly appreciated on how to shift bias to edge from extreme or how someone determines a trend day early on in day.
on trend days the uvol or dvol flatlines for most of the day while its counterpart

steadily increases, its very obvious on a uvol/dvol comparison graph, which i don''t know how to post,you stay in your position until the ration begins to shrink,it's one of the best ways to trade using mp as it usually stops at each virgin poc on the way and you can get out and back in on the smalll bounces with a clear bias

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.


×
×
  • Create New...

Important Information

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