Volume Profile and Market Profile a new wave of market picture

Discussion in 'Advanced Trading Strategies' started by XRAY27, Aug 4, 2016.

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  1. XRAY27

    XRAY27 Well-Known Member

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    Let us dive into the importance of time in trading! I believe time is important because of the following reasons:

    1) Time is money

    2) Time will affect a trader’s psychology

    3) The odds of a winning trade decrease if a trade takes too long to develop

    4) The chart is a time/price relationship along with volume

    Welcome to Market profile study!!! Gurus of this method or this new way of looking markets are J. Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), in was introduced to public in 1985 ,later james dalton added many things

    A trend trader can trade sideways market as good as a trending market with MP as he knows its time to fade the moves - Jim Dalton

    Market profile don't give any targets nor it is a separate system,it is can act as best filter for trade setups..don't jump to conclusion that it is a new system it is a another voice of market ,just listen it if you can :D

    i'm going to move from simple level to advanced level (if people are willing) and also welcome experienced traders to contribute there work
     
    Last edited: Aug 4, 2016
  2. rpsvinod

    rpsvinod Well-Known Member

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    Great Initiative XRAY27,

    Really its unexplored area, awaiting for ur valuable inputs with live market scenario.:thumb:

    RPS. VINOD
     
  3. tradingstudent

    tradingstudent Well-Known Member

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    Mr. XRay 27,

    Thanks for your generosity and more importantly for taking the time as it can be a tedious yet fruitful effort (at least for the people learning it). great regards. Looking forward to learning from you.


    My humble suggestion is:

    1. If possible please reserve some of the starting posts for the strategy.

    2. Please give strict guidelines on how the members response should be or how you want to create the framework...

    Example: No posting of doubts till the strategy is fleshed out... etc....

    2. Listing the basic requirements required for market profile say, software, or data feed or any afl's etc...

    I feel many threads have died down due to digressing from the main topic and the least members could do is appreciate the tremendous effort to maintain such a thread by the strategy owner...

    Once again thank you for your generosity...:clapping::clapping::clapping::clap
     
  4. Shikamaru

    Shikamaru What a drag!!!

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    Hi,
    Nice start, Profiles are one of unexplored effective method,
    Thanks from starting this thread, I Subscribed this thread.
    :thanx:
     
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  5. XRAY27

    XRAY27 Well-Known Member

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    Thanks Vinod for the words !!! just started this thread and i will limit my self to profiles as OFA is being already done in the forum by MT4trader !!!

    I'll cover terminology first and logic behind it, so that newbie can also understand

    Thanks shikamaru !!! i will update in evening
     
    Last edited: Aug 4, 2016
  6. novicetraders

    novicetraders Active Member

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    Good initiative, Looking forward to learn and explore your valuable inputs...
     
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  7. SevenD

    SevenD Well-Known Member

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    As always XRAY27 you always contribute with good valuable stuff:thumb:
     
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  8. rpsvinod

    rpsvinod Well-Known Member

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    I m using this VP & MP to find the tradable zone on NT(Paid Add on)Any other free source is there?

    RPS. VINOD
     
  9. XRAY27

    XRAY27 Well-Known Member

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    In Technical Analysis maximum stress will be on price and least is on volume and time , where as market profile deals with Price and Time with least weight on

    volume and in case of volume profile time is given least weight,which we will see later ,so core components of trading are PRICE ,VOLUME AND TIME

    Market profile chart it is represented with distribution of time and price and volume in bell shape curve to reveal value and pattern

    [​IMG]

    At start we will see some of the components of market profile

    1.Value Area

    2.Point Of Control

    3.Initial Range

    4.Initial Balance

    5.Range expansion

    5.Poor high and Poor low

    6.Excess
     
    Last edited: Aug 4, 2016
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  10. XRAY27

    XRAY27 Well-Known Member

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    1. Value area - price range in which approximately 70% of the market volume took place. and upper high of value area is called value area high and lower is called value area low

    2. Point of control:It is the price where most of the trade for the day happens, which we generally denote that in short words (POC)

    3. Initial Range :First 10 min range of the day

    4. Initial Balance: First hour trade activity which we denote with IB

    5. Range expansion:Range expansion or extension is price action move beyond IB

    5. Poor high and Poor low: A market reaction forming a high which is against trend then fizzling out same with poor low a market reaction forming low but it will be covered in market due course

    6. Excess:when low and high are formed with strong pull back with in short time it is called excess.

    Hope this one line definitions are clear :D ,if you want more details please refer

    [​IMG]
     
    Last edited: Aug 5, 2016
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