Anyone scalping the FTSE Futures??

[Sidekicker]

Right. And if you know how the market is trending, what use is MP? All you need is a bar chart and buy or sell the extremes. Which is what TRO does, although he is a scalper. Not that I am a follower of his method of trading but the principle is the same, surely?

Well..it is of some use because you can target one of the old value or volume control points from a few days before.

But people talk about being able to identify from the first hour of trading, what is going to happen for the rest of the day and it just isn't that simple...especially at the moment when everything is largely news driven.

You can combine buying/selling the extremes with targeting the volume control points in MP but I was never able to successfully use MP to analyse what the market was going to do based on the first hour or how it was developing.

 

[Splitlink]

Well..it is of some use because you can target one of the old value or volume control points from a few days before.

But people talk about being able to identify from the first hour of trading, what is going to happen for the rest of the day and it just isn't that simple...especially at the moment when everything is largely news driven.

You can combine buying/selling the extremes with targeting the volume control points in MP but I was never able to successfully use MP to analyse what the market was going to do based on the first hour or how it was developing.

You have, probably, worked on MP more than I have, but I did a lot and have reached the same conclusions. I would say that the first hour of trading gives no indication, at all, to me and, as the day progresses, its information gets less important.

Don't you feel that, looking at a bar chart and counting the number of bars that cut a certain price gives the same information?

 

[MartinC-J]

DJ/DC - Is today now the buy day as it got bumped over from yesterday? We've had the down tick, so now we should get an uptick. Although, I can't see it happening yet. One more test of the lows, if they hold then it should try back up again.

 

[YouAreNotFree]

Seems to me alot of people do not have a good understanding of what the Market Profile is and how it can be used.

 

[supernovered]

Seems to me alot of people do not have a good understanding of what the Market Profile is and how it can be used.

Please enlighten us.

 

[Sidekicker]

You have, probably, worked on MP more than I have, but I did a lot and have reached the same conclusions. I would say that the first hour of trading gives no indication, at all, to me and, as the day progresses, its information gets less important.

Don't you feel that, looking at a bar chart and counting the number of bars that cut a certain price gives the same information?

Well, the way I always saw it was that price tests support and resistance so why bother trading towards the middle of the range. However, I did use it to extend my targets sometimes but I don't feel it serves me any purpose other tahn defining the most accepted price of a particular day/week.

 

[MartinC-J]

Seems to me alot of people do not have a good understanding of what the Market Profile is and how it can be used.

If you are going to say you don't think people have a good understanding of market profile, you are implying that you do. That's like saying I know something you don't and then running away. If you are going to say something like that, maybe you could spend a few minutes to type in what you understand about market profile.

Personally, it is not something that I have used for scalping. I think it is more important to ES traders than FTSE traders, but I know DJ uses it for both markets and has said on previous occasions how price pulls back into a value area and rebounds.

 

[YouAreNotFree]

Please enlighten us.

I'm not going to explain the MP, anyone can find out for themselves. There is plenty of material out there.

I will point out just a few things though. The MP isn't a magic tool which tells you what the market is going to do based on the first hour. Anyone expecting that is going to be dissapointed imo. Neither is it just about buying lows and selling highs. I don't know where that came from. And yes, of course it can be useful in a trending market by helping you analyse whether we are likely to see continuation or change.

There are many ways you can make use of this tool. For example I have been short the FTSE for more than a week and I've also been daytrading it on the shortside.

How did I use the market profile to hold my position and decide to look for daytrade shorts?

I identified a new distribution (using an activity report) based on the value areas which began three weeks or so ago. Identified an unfair high, an unfair low and noticed that the distribution was building close to the unfair low. Taking from the MP method that the markets move to shut off activity I thought it likely we had to move lower. Days later, this Monday in fact, that happened. I use it in other ways too of course, I find it's especially useful for reference points.

 

[Sidekicker]

I identified a new distribution (using an activity report) based on the value areas which began three weeks or so ago. Identified an unfair high, an unfair low and noticed that the distribution was building close to the unfair low. Taking from the MP technique that the markets move to shut off activity I thought it likely we had to move lower. Days later, this Monday in fact, that happened. I use it in other ways too of course, I find it's especially useful for reference points.

Do you agree that you could also call an unfair high, resistance and is equal to selling the highs?
Do you agree that distribution close to a low, can also be called consolidation or a bear flag?

I am not having a go, just arguing the point. I am all for market profile but, for me, I found the only useful bit was the volume point of control. The rest will get the newbie into a lot of trouble unless they fully understand how to read it, which like everything takes a lot of time and practice.

 

[MartinC-J]

YANF - Thank you for the explanation. Well done with your short on the FTSE.

 

[barjon]

All goes to show that methods are many and various - just as well I suppose, or there'd be no-one on the other side of trades.

In the meantime the infamous 10am reversal has now hit 50% having tried and failed to stall earlier at 38% - short covered (long in - maybe?)

jon

 

[supernovered]

I'm not going to explain the MP, anyone can find out for themselves. There is plenty of material out there.

I will point out just a few things though. The MP isn't a magic tool which tells you what the market is going to do based on the first hour. Anyone expecting that is going to be dissapointed imo. Neither is it just about buying lows and selling highs. I don't know where that came from. And yes, of course it can be useful in a trending market by helping you analyse whether we are likely to see continuation or change.

There are many ways you can make use of this tool. For example I have been short the FTSE for more than a week and I've also been daytrading it on the shortside.

How did I use the market profile to hold my position and decide to look for daytrade shorts?

I identified a new distribution (using an activity report) based on the value areas which began three weeks or so ago. Identified an unfair high, an unfair low and noticed that the distribution was building close to the unfair low. Taking from the MP method that the markets move to shut off activity I thought it likely we had to move lower. Days later, this Monday in fact, that happened. I use it in other ways too of course, I find it's especially useful for reference points.

Thank you.

 

[YouAreNotFree]

Do you agree that you could also call an unfair high, resistance and is equal to selling the highs?
Do you agree that distribution close to a low, can also be called consolidation or a bear flag?

I am not having a go, just arguing the point. I am all for market profile but, for me, I found the only useful bit was the volume point of control. The rest will get the newbie into a lot of trouble unless they fully understand how to read it, which like everything takes a lot of time and practice.

You can certianly make parallels with chart patterns and the market profile. I'm not saying that other tech analysis using bar charts has no merit.

For me, studying the MP gave me an understanding (or at least what I think I understand) of markets in a way reading all of the other tech analysis books didn't, and I have read a fair few. Horses for courses I guess. I really enjoy using the market profile in a way I haven't using other methods.

 

[dc2000]

Hey DC... I hear you are selling tickets for the big show in Woolworths

Shall I ask Pippa to bring a friend?

not much happening by the looks of things we will get lows by next tuesday which is strange to see moves telegraphed like this the 5089 is set in stone as is the 5426 the 4930 isnt but I would expect the hit if the DOW hasnt hit 11103 when FTSE hits 5089

options today are to hit 5225 and pullback to the 5189 level

I will take some time later to reply to the earlier posts but for now off out christmas shopping

 

[Sidekicker]

I am thinking about getting long at least for a few days but longer term still will be looking to sell rallies.

 

[DaddyJohn]

not much happening by the looks of things we will get lows by next tuesday which is strange to see moves telegraphed like this the 5089 is set in stone as is the 5426 the 4930 isnt but I would expect the hit if the DOW hasnt hit 11103 when FTSE hits 5089

options today are to hit 5225 and pullback to the 5189 level

I will take some time later to reply to the earlier posts but for now off out christmas shopping

Am taking the day off...nasty man flu at the moment...orders in place...time to chill out..

 

[DaddyJohn]

Some great posts by the way... Good to see lots of ideas and views presented in such constructive ways..

Makes us all better traders

 

[Sidekicker]

I will take some time later to reply to the earlier posts but for now off out christmas shopping

In Novemeber?!


expect 5350 to be retested at some point:

 

[Dick Lexic]

my first trade today I had to move smartly
caus the 10 min chart had a wee gartley
and so then I clicked buy with anticipation
but as yet the wee train hasn't left left the station

 

[Sidekicker]

my first trade today I had to move smartly
caus the 10 min chart had a wee gartley
and so then I clicked buy with anticipation
but as yet the wee train hasn't left left the station

probably won;t leave either - the afternoon market are eating turkey instead.