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ES and the Great POMO Rally
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ES and the Great POMO Rally

  #311 (permalink)
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Back to Basics!

My all time favorite chart format. I used to draw these charts by hand when I was 18 and a runner on the floor of the CME. IMO, they are still the best charts for short term trading. Paul Rotter still likes to use them. That in of itself, is a strong endorsement.

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  #312 (permalink)
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tigertrader View Post
Back to Basics!

My all time favorite chart format. I used to draw these charts by hand when I was 18 and a runner on the floor of the CME. IMO, they are still the best charts for short term trading. Paul Rotter still likes to use them. That in of itself, is a strong endorsement.

interesting.
would you kindly share the template?
UC

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  #313 (permalink)
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I do like to identify confluence areas using a longer term profile view of the market using the TPO model along with volume histogram. You'll note that volume provides objective points where a cluster of trades occured. These are areas to be aware of as price revisits these levels and one way to use volume at price to your advantage.

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  #314 (permalink)
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theucreport View Post
interesting.
would you kindly share the template?
UC

Here you go!

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  #315 (permalink)
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Some locations that are invisible on a candlestick chart: Naked Point of Control.

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Naked POC ?


trendisyourfriend View Post
Some locations that are invisible on a candlestick chart: Naked Point of Control.

This is not invisible on a chart. There was a narrow range day on Thursday 31st, which extended into the night session (Globex) of Friday April 1. Prices then broke out to the upside and came back to that midrange on May 5.

It is not unusual that price retraces to the middle of the preceding congestion after a breakout.

The congestion was important enough, because it included the entire narrow range day of Thursday. Just the Globex session of Friday would not have that impact.

Just an alternative view, also using hindsight.

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Fat Tails View Post
This is not invisible on a chart. There was a narrow range day on Thursday 31st, which extended into the night session (Globex) of Friday April 1. Prices then broke out to the upside and came back to that midrange on May 5.

It is not unusual that price retraces to the middle of the preceding congestion after a breakout.

The congestion was important enough, because it included the entire narrow range day of Thursday. Just the Globex session of Friday would not have that impact.

Just an alternative view, also using hindsight.

Yes i agree to some extent but the ES seems to respect Market Proifle levels to the tick. It fascinates me as many times you can trade such significant levels without looking at your usual RSI, MACD or whatever indicator. It seems that to trade the ES effectively due to its narrow daily range you need to use the Market Profile tool along with volume. Nothing fancy or mathematical just location location and location and the courage to hold on your trade for at least a 5 or 10 points. Holding on your trade from 1323 to 1333 was the correct play today and fading the top at 1333+ was the second potential trade setup down to the middle of the pre market range if you know where it is located

PS the bold passage was to make fun of you. Just could not resist.

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  #318 (permalink)
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trendisyourfriend View Post
Yes i agree to some extent but the ES seems to respect Market Proifle levels to the tick. It fascinates me as many times you can trade such significant levels without looking at your usual RSI, MACD or whatever indicator. It seems that to trade the ES effectively due to its narrow daily range you need to use the Market Profile tool along with volume. Nothing fancy or mathematical just location location and location and the courage to hold on your trade for at least a 5 or 10 points. Holding on your trade from 1323 to 1333 was the correct play today and fading the top at 1333+ was the second potential trade setup down to the middle of the pre market range if you know where it is located

PS the bold passage was to make fun of you. Just could not resist.

I knew Pete Steidelmayer from the bean pit, and I remember when he first introduced MP, and traders started using it. Pete was not your typical BOT local - total non-conformist and independent thinker. I looked at MP a couple times back then, but I really didn't want to be bothered keeping it up while I was banging around in the pit. Of course, now that I don't have to construct and maintain the profile manually, I am now sitting at a screen, and I have somewhat taken the time to understand it, I can truly understand and appreciate the brilliance behind the man. It's an incredible testament to Pete that MP has not only endured, but continues to grow in popularity. What's more incredible is that he shared this important tool with the trading community.

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tigertrader View Post
I knew Pete Steidelmayer from the bean pit, and I remember when he first introduced MP, and traders started using it. Pete was not your typical BOT local - total non-conformist and independent thinker. I looked at MP a couple times back then, but I really didn't want to be bothered keeping it up while I was banging around in the pit. Of course, now that I don't have to construct and maintain the profile manually, I am now sitting at a screen, and I have somewhat taken the time to understand it, I can truly understand and appreciate the brilliance behind the man. It's an incredible testament to Pete that MP has not only endured, but continues to grow in popularity. What's more incredible is that he shared this important tool with the trading community.

The wheel is reinvented from time to time. Let us look at what market profile really is:

It is a simplified volume distribution (based on TPOs instead of real volume) allowing to produce a picture of a session. The typically used tools such as POC or value area can be obtained alternatively.

(1) POC

This is a mode of the distribution of the trades of a session. For unimodal distributions it should be close to the median and the volume weighted average price. Actually POC, floor pivot PP, VWAP and Median of the session are similar tools as they represent value.

(2) Value area

Projecting past prices forward in the future. You can also use an Ichimoku Kinko Hyo cloud or the pivot range or standard deviation bands around the VWAP. All these give quite similar results, as they designate an area where most of the trades of a past period have occurred.

Where market profile has an edge: It allows to identify different shapes of volume distribution and give an intrepretation for different types of days such as double distribution days. But this is a science on its own.

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  #320 (permalink)
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Fat Tails View Post
The wheel is reinvented from time to time. Let us look at what market profile really is:

It is a simplified volume distribution (based on TPOs instead of real volume) allowing to produce a picture of a session. The typically used tools such as POC or value area can be obtained alternatively.

(1) POC

This is a mode of the distribution of the trades of a session. For unimodal distributions it should be close to the median and the volume weighted average price. Actually POC, floor pivot PP, VWAP and Median of the session are similar tools as they represent value.

(2) Value area

Projecting past prices forward in the future. You can also use an Ichimoku Kinko Hyo cloud or the pivot range or standard deviation bands around the VWAP. All these give quite similar results, as they designate an area where most of the trades of a past period have occurred.

Where market profile has an edge: It allows to identify different shapes of volume distribution and give an intrepretation for different types of days such as double distribution days. But this is a science on its own.

Especially when it comes to indicators, it's all a variation on the same theme...I guess.

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