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Practical uses of market profile

Discussion in 'Trading Strategies/Systems' started by banco, Mar 15, 2019.

  1. banco

    banco

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    I trade first 1.5 to 2 hours of US grain futures (plays havoc with my sleep patterns). Probably 85% of my trading decisions are based on the price ladder.

    I've looked at market profile (principally Jim Dalton's stuff) for a number of years and there's some useful higher level principles (excess versus balance, where did the volume trade and how to see where the market is too short/long etc) but if I had to trade with just market profile there's no way I would be profitable.

    There are very occasional setups that would probably work (primarily where traders are too short or too long) but most of the 'setups' I see on the market profile would have horrible risk reward ratios as by the time you are in the move is probably half over.

    Do people only use it as an adjunct to things like the price ladder or is there something I'm missing?
     
  2. tech/a

    tech/a No Ordinary Duck

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    Can oz is the resident expert.

    Stadelmayer is the father of Market profile
    The best education program I have seen is
    (Was) on the CBOT web site you could down
    Load and print it off 300 pages.

    If Can Oz is about and willing I’m sure he
    Will help.
     
  3. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Thanks Tech and Joe for alerting me to this thread.


    Simply put, use a volume profile to identify areas of high volume where there is likely to be a portion of that volume offside if a move happens, or use the area and look for weakness at the extremes if you prefer to fade. Use a collection of balance days for levels that might offer liquidation or short covering opportunities.


    Check out Jigsaws latest video on the 7 setups and use that with the context that volume profile generates to develop plays. There are also many other plays, but these are only ones that I have noticed, you need to develop these yourself through screen time and testing where possible.:


    *open drive*

    *open test drive

    *overnight trend fade

    * opening range breakout retest

    * range breakout retest

    *balance breakout

    *balance breakout failure

    *Cumulative Delta momentum and cumulative delta divergences


    That’s should get you started.


    CanOz
     
    peter2 and tech/a like this.
  4. tech/a

    tech/a No Ordinary Duck

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    Fantastic Can Oz

    Really rings a loud bell with the work I'm doing parallel
    on Volume and V/C Bars.

    Futures
    In particular as M/P studies--Open Drive and Open test drive.
    These two in futures are an important key.

    Not necessarily as prominent in Stock Trading.

    You Going to Radges this year?
    I'm popping up for a catch up and bit of R and R.
    Great if your there as well!
     
  5. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Hi tech, no I'll not be going this year, but looks like a star lineup.

    Enjoy!
     
  6. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    DF360796-2624-4988-BF0F-45D419B84BCD.jpeg2EEB79D8-A27B-46D6-A061-967F9B7CE101.jpeg Pretty good example of an open test lower then drive the shorts out....nice context as a higher timeframe breakout retest was successful and gives the bias quite clearly. The open is 18:00
     
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