Market Profile : An Intraday Trading Approach ???

[chiruvyapari]

dear B_AV


here you go
http://www.traderji.com/group.php

 

[SGM]

where is the group?

Always wondered why BAV was missing from the list of members........

 

[moneygurukul]

MarketDelta is a software product that is used for intraday analysis of MarketProfile patterns and or support/resistance levels that can help gauge buying and selling pressure through volume. Check out this graphic. It show 30 minute bars segmented by price.

www.marketdelta.com

VSA software works on almost similar lines. The principles are also applicable to EOD data. I have applied these principles on trading NIFTY intraday with success. (Though I eye-ball the charts). Number of times the Buying at new lows or selling at new highs results into only a momentary dips. At the other hands, sometimes it will go to reverse the direction of the day itself. Besides, very often there will be a retest which may momentarily cut the low. Hence, one needs to leave some margin for Stop-loss. If the stop-loss is hit, reversal of trade is highly profitable. But this approach ruins the ability to run the position for huge profits. As we never know whether the market will reverse or will take only a momentary dip, a large chunk has to be sold for very small profit.

For example, Today went long NIFTY Future @ 4420.2 and sold 75% @ 4429. Sold rest 25% @ 4419 when market retested this level and market bounced back. Could not run the trade. Had to take another entry after 5-min downtrendline break.

 

[CreditViolet]

The basic principle i think can even be applied to EOD data. But too early to say. Will need to study more. Implementation will take more time.

Yes it can be applied very well on EOD data.Implementation though will take years, studying MP is the easiest part but implementing it successfully is quite difficult.I know a lot of people who understand the theory well but are not able to use it to trade in real-time.

BTW, for those interested, CV has started a group on MP for USERS of mkt profile (so don't expect spoonfeeding). There's also an entire section on MP at EliteTrader.

Yes, I named it users because I dont want newbies to sidetrack the group with basic questions, its more of a meeting point than a support group.

Regards,
Kalyan.

And mine too sir.

 

[CreditViolet]

where is the group?

http://www.traderji.com/group.php?groupid=1

 

[CreditViolet]

VSA software works on almost similar lines. The principles are also applicable to EOD data. I have applied these principles on trading NIFTY intraday with success. (Though I eye-ball the charts). Number of times the Buying at new lows or selling at new highs results into only a momentary dips. At the other hands, sometimes it will go to reverse the direction of the day itself. Besides, very often there will be a retest which may momentarily cut the low. Hence, one needs to leave some margin for Stop-loss. If the stop-loss is hit, reversal of trade is highly profitable. But this approach ruins the ability to run the position for huge profits. As we never know whether the market will reverse or will take only a momentary dip, a large chunk has to be sold for very small profit.

For example, Today went long NIFTY Future @ 4420.2 and sold 75% @ 4429. Sold rest 25% @ 4419 when market retested this level and market bounced back. Could not run the trade. Had to take another entry after 5-min downtrendline break.

VSA is an incomplete process for trading, I have my own set of 'Wyckoffian' Principles evolved overtime which needed a lot of 'combining' with other methods.

 

[franktrader]

Yes it can be applied very well on EOD data.Implementation though will take years, studying MP is the easiest part but implementing it successfully is quite difficult.I know a lot of people who understand the theory well but are not able to use it to trade in real-time.

Very True Sir....

 

[kkseal]

Yes it can be applied very well on EOD data.Implementation though will take years, studying MP is the easiest part but implementing it successfully is quite difficult.I know a lot of people who understand the theory well but are not able to use it to trade in real-time.
...

Thanks CV. Always encouraging to know from you IT CAN BE DONE

Regards,
Kalyan.

 

[kkseal]

Always wondered why BAV was missing from the list of members........

Yeah, i too was wondering. Actually the link for the Social Groups isn't so obvious. Can be accessed from the 'Quick Links' menu item after one logs in.

Regards,
Kalyan.

 

[moneygurukul]

VSA is an incomplete process for trading, I have my own set of 'Wyckoffian' Principles evolved overtime which needed a lot of 'combining' with other methods.

A few days back, I was reading Vir Sanghvi on why it's almost impossible to replicate the taste of restaurant dishes even if somebody is copying from the cookery book written by the restaurant chef itself.

The same thing applies in the markets as well. Be it MP or VSA or even the plain vanilla pivots, Any approach/software in itself is never complete in itself and has to be combined/modified to suit the trader's skills and temperament. Afterall, it's impossible to translate the feel of the market in words.