If someone could step me thru uploading a word document screen shot of two succesful trades I made on the ES a few days ago that neted 7 points using a few techincals for confirmation and MOST importantly market profile tool, I would be happy to share..
o.k. here is my first attempt at posting a screen shot of a trade I made.
Took two trades that day, one at 9:53 for 5 points and another at 9:53 for two points, BOTH WITH 6 TICK STOPLOSS. Used standard indicators for confirmation HOWEVER, the market profile perspective WAS THE MAIN REASON FOR TAKING THEM.
My mistake, the second trade was taken at 15:38 as you can see on the screen shot, both had a S.L. of 6 ticks for safety, however i usually use at most a 4-5 tick stop.
I will be posting a screen shot of several trades I made today in a few, complete with the market profile chart on the screen so you can see why and where I took the trades. Keep in mind that market data profile is not a trading indicator per say, it is more of a trading Decision assistant. helps you gauge were sellers and buyers are the strongest and there respective levels. Helps you not take a trade where the move is exhausting.
Last edited by bobbyacim; April 6th, 2011 at 09:14 PM.
O.k, for the Market Profile distribution price chart, I bought software from Fin-alg.com for ninjatrader for $249 one time fee. Otherwise you can lease it for $49 per month from some vendors out there.
Although a more effective Stoploss should be based on the characteristics of the market's support and resistance levels or pivots, etc; I do start out with a fixed bracket order in order to enter the trade quickly, once in the trade, I may re-adjust the Stoploss accordingly; O.k, 2 contracts, both 4 tick Stoploss; First contract target is 3 ticks, however in order to get it, the price has to pierce the 4 tick level. So once I am up 3 ticks, I move the stoploss to breakeven in case the market reverses on me before hitting my target(4 ticks) making it basically a free trade.
Second contract target is 12 tick runner, same initial setup of breakeven after 3 ticks and then I rise the Stoploss after every 3 ticks of profit.
1. The first screen shot shows the market-profile screen as well as my candlestick(trading) screen with confirming indicators.The market-profile software records the day as well as the evening session, this gives me a good sense of each sessions distribution range, where the development levels are and the initial balance(first hour of trading, labled A and B) and the value area highs and lows as well as the POC (point of control) for each session.
I will give you a synopsis of some powerful techniques I have learned and use from Reza's market profile Bootcamp and his trading-room.
2. After I have looked at the overall direction of multiple days worth of profiles I will then merge Yesterdays day and nite sessions together to get a composite profile, this is shown in the second screenshot, sorry if the details are a bit smudgy in the picture.
3. From this composite, I can see that yesterdays Value high area was at 1332, yesterday's POC was at 1328.50 and yesterdays value area low was at 13.27.00. These become key reference points when todays market opens at 9:30 a.m.
Todays action: I see that TPO "A" opens and goes up and then sellers force it down creating a single print "A" at the top, this is called Minus development or a selling tail. Then starting at 10.a.m. TPO "B" opens reaches the open of "A" and then quickly heads down and violates the prevous day's Value area high. Then TPO "C" reaches the top of "B" and continues the assult on prevous days's Value area High, basically what we now have is a 'ledge" or a triple top in Non M.P. terms. When "C" retraces close to Todays's value area high as much as possible, I will ENTER at "D" when it violates yesterdays value area high for a first target of yesterday's POC and second target at the far end (Value area low) of yesterday balance developmet.
Several things I considered for the trade; The high of "B" was lower than the high of "A" and "C" 's high never went above the high of "B". Also the market was moving heavily below the open of "A" and the open of "B" which indicates a DOWN Cycle is forming. The ledge of A,B,C with minus development of the selling tail gave me confidence above the ledge would be a safe place for a stoploss.
In addition to this classic trade, I took two others. my score is 3 trades taken, two achieved profitability.
The insight that I have gained from using market profile is something I would find impossible to know with just price bars or technical indicators alone. However the skill of learning how to use market profile takes time to learn. Reza's Market-Profile bootcamp was the key for me.
Last edited by bobbyacim; April 6th, 2011 at 09:48 PM.
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