Market Profile Question

[gasmith7 10]

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.

[sep34 10]

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.

[sevensa 10]

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.

[Kiwi 16]

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.

[TheNegotiator 13]

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?

[MightyMouse 12]

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

[TheNegotiator 13]

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.

[ammo 10]

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