Market Profile Crude Oil Analysis

Sigma-D

Established member
648 62
Does market profile have any validity these days? I thought its inventor declared it defunct many years ago as the markets and the structure on which the model was originally based, have changed so comprehensively.
 

Speculator70

Member
50 0
Why Use Market Profile

MP is real raw data. It is not manipulated by any indicator, mathematical scheme, algo or average. It Runs in a 30 min time frame so it eliminates the chop, fast enough to catch the bigger moves. It is the most efficient way to organize the data showing time and volume in one place, actually the only place. Everything that hits the manipulated market is contained within the profile and all markets look the same through the profile. It shows who is in control and accurately predicts support, resistance and market direction accounting for volatility.Very had to be on the wrong side of the market when you see the changes as they develop by reading the profile not when an indicator tells you in a lagging sense.

It is the only non indicator based way to trade the markets and is registered through the exchanges. You don't need to depend on someone's Holy Grail indicator. Market Profile is meant to be kept simple and yes there are traders out there that need to complicate it and make it look very difficult when you really could grasp the method of MP in a few days.
 

Sigma-D

Established member
648 62
MP is real raw data. It is not manipulated by any indicator, mathematical scheme, algo or average. It Runs in a 30 min time frame so it eliminates the chop, fast enough to catch the bigger moves. It is the most efficient way to organize the data showing time and volume in one place, actually the only place. Everything that hits the manipulated market is contained within the profile and all markets look the same through the profile. It shows who is in control and accurately predicts support, resistance and market direction accounting for volatility.Very had to be on the wrong side of the market when you see the changes as they develop by reading the profile not when an indicator tells you in a lagging sense.

It is the only non indicator based way to trade the markets and is registered through the exchanges. You don't need to depend on someone's Holy Grail indicator. Market Profile is meant to be kept simple and yes there are traders out there that need to complicate it and make it look very difficult when you really could grasp the method of MP in a few days.
Well, that would be absolutely splendid news if only the person who actually invented the model 30 years ago hadn't declared it almost completely useless less than a decade later. He said himself from the outset that it was born into an environment of open outcry where the commercials guys, and their activity, was visible to all in the pits. He had a lot more than just MP to aid his trading endeavours. As trading and data supply changed, the focus centred on the profile itself rather than the quality of the data which originally comprised it. The critically important aspects of the start of day in establishing who had control (short-term or long-term) and the necessity for normality (Gaussian distribution) are often overlooked, as is the case here.

It has become little more than another gaudy but rather useless toy to infatuate those who decline to think originally and would rather utilise long-dead techniques as long as they look pretty on the charts.

One of the most telling aspects of the posts in this thread is that none of them suggest a trading method utilising the data going forward. They are either retrospective analyses with attempts to rationalise what has happened or questions posed in such as way as to provide a clear exit for any eventuality.

If my response seems a little harsh that is likely because instead of responding to my initial question with a reasoned rebuttal, you just churned out a load of boilerplate advertorial hoping that we wouldn't notice is neither addressed the issue raised not actually applies to the product in its current form.
 

Speculator70

Member
50 0
Sorry if my response looked a little harsh as well and by no means did I try to offend. Your question was if MP was valid. I just put down from my thoughts in a quick fashion trying to answer your question. I'm sure in depth we could argue back and forth until we both turn blue which I would rather not. I'm sure you are a very successful trader with the methods you use and I wish you all the best. Also I'm not here to advertise MP as I just find it satisfying enough to contribute to a community of traders.
 

Sigma-D

Established member
648 62
Your post wasn't harsh, but I felt mine was and explained why. I'm not a successful trader at all, quite desperately awful in fact, but over-endowed with intelligence and incredibly well researched on the general area of trading, but crap at it. Possibly hence the attitude problem.

If MP does the job, please show us just one example of its utilisation going forward or during a single day's session, in real time, so that we can understand the degree to which it could transform one's trading as you suggest.
 
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