Market Profile in gold, oil, currencies

chickendinner · Oct 18, 2011

What do you consider is the first hour for trading for gold, oil and currencies? Market Profile says the first hour for ES is 8:30-9:30 CST. Is gold 7:20-8:20 CST and oil 8:00-9:00 CST? And what about currencies? They are 24 hours. Is there an "opening hour" in currencies?

YouAreNotFree · Oct 18, 2011

chickendinner said:
What do you consider is the first hour for trading for gold, oil and currencies? Market Profile says the first hour for ES is 8:30-9:30 CST. Is gold 7:20-8:20 CST and oil 8:00-9:00 CST? And what about currencies? They are 24 hours. Is there an "opening hour" in currencies?

The first hour of trading isn't as important with 24h markets as it was 30 years ago when the MP was first used and it's generally considered a poor tool to use now. It's better to look at a chart and come your own conclusion on the IB, most of the time it will be well over an hour. Imo anyway.

JRP2891 · Oct 18, 2011

YouAreNotFree said:
The first hour of trading isn't as important with 24h markets as it was 30 years ago when the MP was first used and it's generally considered a poor tool to use now. It's better to look at a chart and come your own conclusion on the IB, most of the time it will be well over an hour. Imo anyway.

That's an unhelpful generalisation. It all depends on whether you can make it work for you.

YouAreNotFree · Oct 18, 2011

JRP2891 said:
That's an unhelpful generalisation. It all depends on whether you can make it work for you.

So what is your take on determining the IB then? You think the 1 hour rule can still be applied/ have the same relevence now we have 24 hour markets?

wackypete2 · Oct 18, 2011

YouAreNotFree said:
So what is your take on determining the IB then? You think the 1 hour rule can still be applied/ have the same relevence now we have 24 hour markets?

You can still use the pit opening at 8:20am NY time as the opening. There's a significant volume increase so it's still relevant, maybe not as much as it once was, but still useful.

Peter

YouAreNotFree · Oct 18, 2011

wackypete2 said:
You can still use the pit opening at 8:20am NY time as the opening. There's a significant volume increase so it's still relevant, maybe not as much as it once was, but still useful.

Peter

In MP terms the IB is a trading range established after the open where two sided trade can occur by those on a short term t/f. All I was pointing out is that it's going to vary for whatever market you are trading and now with 24h trading its better to use your own discretion than use the 30+ year old 1 hour rule after the open when things were so different. Even the 'inventor' of the MP ditched that.

wackypete2 · Oct 18, 2011

YouAreNotFree said:
In MP terms the IB is a trading range established after the open where two sided trade can occur by those on a short term t/f. All I was pointing out is that it's going to vary for whatever market you are trading and now with 24h trading its better to use your own discretion than use the 30+ year old 1 hour rule after the open when things were so different. Even the 'inventor' of the MP ditched that.

Yes, I agree. The problem arises when a better IB would be at night when I can't trade (whatever market it is). I can still use the old tried and true. Since I am on NY time here in the USA most exchange openings naturally would be my choice.

Peter

juniorh · Oct 18, 2011

The definition IB has evolved from the days when Locals on the trading floor pit were able to dominate the market price in the fist hour (see the Market Profile Trading A to Z) . Now the IB is more about the height and distribution of the opening balance.

maxima · Oct 20, 2011

YouAreNotFree said:
The first hour of trading isn't as important with 24h markets as it was 30 years ago when the MP was first used and it's generally considered a poor tool to use now.

JRP2891 said:
That's an unhelpful generalisation. It all depends on whether you can make it work for you.

I think he meant - the MP's efficiency and accuracy now are much lower than other tools. so there is little practical value for it if you know the better tools.

YouAreNotFree · Oct 20, 2011

I meant the 1 hour after the open IB rule. When captial can enter a market by the billions in an instant at any time of the day it pays to be more flexible imo, thats all.

robster970 · Oct 20, 2011

I use first 90mins of RTH for ES

stang3O2 · Oct 22, 2011

IB is the first hour of regular session hours trading so the ES is 9:30-10:30 am est and oil is 9-10 am est

Market Profile in gold, oil, currencies

chickendinner

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YouAreNotFree

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JRP2891

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YouAreNotFree

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wackypete2

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YouAreNotFree

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wackypete2

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juniorh

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maxima

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robster970

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stang3O2

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