The Flow Method and Market Profile

Hi all,

Had been studying Market Profile from some months now.
Will try to show some ideas which can be incorporated into flow method.
It will mainly help us to improve in decision making abilities.

Regards.

Hi All,

Intro to Market Profile.(who ever knows the basics of MP need not read this).
1.First of all some very basic introduction about market profile.A small 8 paged pdf.
http://www.4 shared.com/file/69861945/c275d48d/Market_Profile_Basics.html?dirPwdVerified=3095cef0

2.This is an interesting concept called the 80% rule happens every now and then and its accuracy is quite good.This happened today!This again a very small pdf with 5 pgs
http://www.4s hared.com/file/69862151/c0a5df83/80PercentRuleForValueArea_web.html?dirPwdVerified= 3095cef0

3.If we keep the info in this file in our mind it will be useful in certain situations for decision making on our trades.Again a 2 pg file.
http://www.4 shared.com/file/69862343/34345b80/Market_Profile_Trading_Methods.html?dirPwdVerified =3095cef0

4. the below site is a very good place to start for knowing about MP all terms about MP explained visually.By going through all the terms there u will get to know "what stands for what" kind of questions.
http://www.trading-naked.com/MarketProfile.htm

5.This link is to get a feel of how MP works on realtime charts.Consists of some real time charts of American market with MP overlay.
http://www.trading-naked.com/MarketProfileCharts.htm

Thats it,if one knows that much we can start off with the discussion.

Regards.

keep going bro, good work,

rajendrani

If some one wants a detailed study about MP can get it from this site.

http://www.cbot.com/cbot/pub/page/0,3181,1184,00.html

regards.

Thanx Rajendrani.

Basically got some help from CV sir and some articles from net in understanding about MP (when I told him about the using of pivots and MP to guide us through a trade he had said me "marriage of MP and pivots").This is what I am trying to do.Trying to mix both the basic elements of market.

regards.

And as u all know where the flow method was learnt from.Our good old Saint(have never seen anybody having patience like him)

Regards.

So I thank them both before starting off.

Thanks man for starting a thread on Market Profile. Looking forward for its implementation on Indian mkt.
Do you know of any software that will draw the Profile for NIFTY, intraday as well EOD ?

Market profile, Shifts from one value area to another VA, beautifully explains various price action based TA concepts. some examples from my experience are -

1) Opening Gaps are filled almost 80% of the time - because price opens far away from previous days Value area and hence it tends to come back to the value area, atleast to test the breakout
2) Hammer / Hanging man pattern - Due to temporary imbalance, Price goes to different Value area, which is immediately rejected by the mkt and price retraces back to previous VArea and leaves a tail behind on the candlestick chart.
3) Break of market structure /Pivot points - breakup/breakdown from one value area to another
4) Retracement on price charts - retest of previous value area to ensure that the perception of market participants whether their perception has really changed or not.

Looking forward for experience of others who trade MP.

Happy Trading

Rakesh,

It is nice to see that you have focussedly stayed in the path since few months and obviously we can see the Fruits of those effort,thks.
Plz continue your good work,your gesture to share is very well cultivated by Jesse's influence & this forums tradition.

Asish