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Markets in Profile. I never get tired of listening to Mr. Jim Dalton webinars. I was confused when I first heard from Jim Dalton during one of his presentations that he is not a Market Profile Trader ( about a year ago).
I was like , I have spent 200 hours reading his book, articles, listening to webinars etc.. and now after all this he is talking about that he is not a market profile trader? I gave up on using Market Profile to trade CL.
After a year of using Mark Fisher ACD method to day trade CL and using concepts of Mr. Dalton to get a handle on market structure etc..I finally understand what he meant when he said " He is not a Market Profile" trader.
In summary, I would not have been able to trade successfully solely based on Mark Fisher book. For me, Jim Dalton book gave macro picture and mark Fisher book gave " EXECUTION" of macro picture. It is just not possible to cover everything in one book.
Following is an example , how Mr. Steidlmayer expanded my ACD.
" Once the market completes its growth phase and becomes static, a third stage occurs which makes the market most efficient. A price that best serves all participants is located and utilized. Essentially, the market is heavily influenced by the first two stages, while the third stage exerts a latent influence through time. Price handicaps the market in the same way weight handicaps a racehorse- ultimately, both are slowed as a result.
In terms of distribution, market movement would be contained by a CENTRAL PRICE where distribution and development are proportionally related to the static range of the distribution".
I used to read paragraphs like above again and again but could not get a handle on my LOVE- CL (lol). And finally, I read Mark Fisher and CL being down $8 in 3 days and then up $12 in next 6 days started to make sense and how to EXECUTE it.
Once, I got through initial phase of ACD success, there were days when i needed more than ACD. That's when my earlier readings of market profile, Mr. Vic Sperandeo, Market Wizards books etc.. started to help.
Point being, if i have to do it again, I will first read a book which helps with EXECUTION ( for me it is MF book) and then read all the other wonderful books.
I started with Market Wizard and about 100 other wonderful books but all of them had little to show in terms of EXECUTION. At first stage of my development I needed a book from a master trader like Mark Fisher.
Note: I do not want to start a discussion as to which book is better etc.. Just sharing my thoughts for new traders.
Here is a link I found that is a bit outdated, but shows some basics to the technique. So, basically it is really a breakout system with predetermined breakout levels measured by ATR.
You have A level trades that either succeed or fail. If they fail, then C level trades are basically A level trades except placed a little further out.
The issue with this boy is in a ranging market I could see a few days of getting your ass kicked.
Mark Fisher's book has nothing to do with market profile. @mfbreakout just mentioned that he likes to combine the price-volume analysis as suggested by Jim Dalton with the breakout system of Mark Fisher.
I personally do not use market profile. Market profile is more based on the mode of a price-volume distribution, whereas I prefer to use the VWAP with standard deviation bands. The VWAP is the arithmetic average of the price volume distribution.
I also do not use the breakout levels as defined by Mark Fisher ( A and C levels). The problem is that the breakout level is only confirmed, when price stays above the breakout level for more than half the opening period. So you have to wait for that time to expire and then enter on a retracement back to the breakout level, if possible (see chart 1 attached).
The noise bands do not require any opening range, but simply refer to the opening price itself. The advantage is that you do not need to wait for 45 minutes and then for the confirmation, but the range plots immediately.
MF,
You are giving gems on this site.. ACD/MP/VP are some of the best concepts out there.. Your beyond ACD concept is another gem.. Good stuff.. Those Shaolin Kung Fu moves (along with a few others) started me off on butt kicking rap song posting campaigns....ha
The noise band is a simple indicator, but it requires the use of a session template.
The daily noise is the smaller of (High - Open) and (Open - Low), or the smaller move from the open, which I consider being the move which was required for testing the value area, but did not attract the majority of the traders.
The indicator calculates the average noise for the last M and N days. Default setting is M = 10 days and N = 20 days. The average noise is the added and subtracted from the current open. The chart attached below shows the noise for the last two trading days.
The indicator can be found in the download section as SessionNoiseBands.
Exported using NT Version 7.0.1000.10
This indicator is an old version and there will be no more maintenance. All the features have now been integrated with the SessionPivots indicator that can be downloaded here:
https://nexusfi.com …
Fat Tails,
Thx! This concept makes a lot of sense and is very similar to the ACD concept.. I can see how this concept can be very complimentary to VWAP as well.. I'll put it on and try it out.. Much thanks and Happy New Year!!
Jedi
