This has been mentioned on this site before but its worth mentioning again. There is a very skilled trader who generously tweets all day long as he trades the ES. I'm learning a lot from him. He's a master of the volume profile.
His ability to predict market moves is pretty amazing.
I was having a look through his website and he is truly a skilled trader. The Auction market approach that he applies appeals to me. I agree that one can assume the market moves randomly and yet still be profitable based mainly on money management but his approach adds an almost scientific structure that I find very appealing. I find myself asking why the market will turn at a certain point or move to a certain level and the auction process seems to answer this.
I would be very interested in discussing his method further if anyone is currently applying it?
I am pretty sure FT71 does it all by hand the night before or in the morning before trading. Check out the videos on his site and he goes through the steps.
I am on NT and use the Price Volume Histogram indicator along with a daily market profile indicator and you can get something similar to what he uses. The Price Volume Histogram can give you a composite market profile to mark up the HVN and LVN and composite POCs. The Daily MPs can be used to show other areas you want to trade, naked POCs, gaps, etc.
The following user says Thank You to CDesai13 for this post:
there is a Market profile indicator on the Ninja forum. I think it is also on futures.io (formerly BMT). Give you the POC, Value areas and you can see high and low volume.
Here is poor man's version of Market Profile. I saw it in the Ninja Trader support forum and thought might be helpful for people who like to see the market profile chart without paying for it. You need to open an intra-day chart (like a 5 minute chart) …
david
The following user says Thank You to David_R for this post:
iMarketProfile is great for looking at an individual day's profile. The HVN and LVN are much easier to identify from the composite view generated by combining the profiles of multiple days/weeks/etc which is easily done through the Price Volukme Histogram... JMHO
The following user says Thank You to CDesai13 for this post:
Here is an example of what I was trying to say... Check out the composite profile (Red and Gray) vs the daily profiles (Green) and look at where price was reacting and rotating. This was a 5min chart of CL from 8am to 2:30pm. I extended the normal pit hours which are 10am to 2:30pm as a personal preference.
I'm pretty sure that the Paint Bar Indi is for Elite Members only so I can't post the template and indicators. I took screen shots of the setup in NT though... Hope this helps. Let me know if you have any questions.
