Market Profile initial balance

nth555

Newbie
1 0
Can anyone help me with a market profile question. If the initial balance is the first 2 half hour periods of the day that would imply an initial balance from 1.00 am to 2.00 am if I was trading brent crude oil. There is so little trading going on at this time that to me it would not make sense to use this. Does anyone have any suggestions of suitable initial balance time frames for 24 hour markets. The brent crude market volume increases noticably from 7.00 am onwards. From 7.00 am to 8.00 am would make a more sensible opening range. I could set my chart to make the initial balance form 1.00 am to 8.00 am. Is this feasible? Any suggestions or advice very welcome.
 

traderunner1

Member
57 2
Re: Market Proile initial balance

Can anyone help me with a market profile question. If the initial balance is the first 2 half hour periods of the day that would imply an initial balance from 1.00 am to 2.00 am if I was trading brent crude oil. There is so little trading going on at this time that to me it would not make sense to use this. Does anyone have any suggestions of suitable initial balance time frames for 24 hour markets. The brent crude market volume increases noticably from 7.00 am onwards. From 7.00 am to 8.00 am would make a more sensible opening range. I could set my chart to make the initial balance form 1.00 am to 8.00 am. Is this feasible? Any suggestions or advice very welcome.
To me initial balance makes only sense if there is something to balance.
Looking e.g at euro dollar (CME) session opens 17:00 chicago time mine 00:00, and there is normally very thin volume, i never look at it myself

Good to see a market profile user on the forum!

TR
 

Rhody Trader

Senior member
2,620 264
Re: Market Proile initial balance

Using the first two official regular exchange session periods generally is the best way to go.
 

sergio83

Junior member
10 0
Re: Market Proile initial balance

Using the first two official regular exchange session periods generally is the best way to go.
I'm going to use the Market Profile with the forex in particular with EUR/USD.

So the better way to consider the initial balance in this market would be the australian and asian session? so basically since the closing of the american untill the beggininng of the London session?

Thanks for any infos
 

Rhody Trader

Senior member
2,620 264
Re: Market Proile initial balance

I'm going to use the Market Profile with the forex in particular with EUR/USD.

So the better way to consider the initial balance in this market would be the australian and asian session? so basically since the closing of the american untill the beggininng of the London session?
That wasn't what I was saying, but it could work. I suppose it depends on the sort of trades you want to do. Feel free to experiment.
 

sergio83

Junior member
10 0
Re: Market Proile initial balance

That wasn't what I was saying, but it could work. I suppose it depends on the sort of trades you want to do. Feel free to experiment.
Ok thanks Rhody, but i would really like to understand what you actually meant with "the first two official regular exchange session periods"

P.S. is that a forum with a lot of people using Market Profile? i'm struggling to find some forum about it where to share opinion. it's such a grat discipline for trading
 

Rhody Trader

Senior member
2,620 264
In an exchanged-traded market like futures (which is where MP was originated) "first two official regular exchange session periods" means the first two half-hour periods after the market opens. That, of course, is based on a day trading type timeframe. If you're looking longer-term it could be something like the first two days in a monthly distribution.

As for whether there's a lot of people here using MP, it doesn't seem like it. The subject does come up from time-to-time, but isn't a frequent talking point.
 

Splitlink

Legendary member
10,850 1,232
In an exchanged-traded market like futures (which is where MP was originated) "first two official regular exchange session periods" means the first two half-hour periods after the market opens. That, of course, is based on a day trading type timeframe. If you're looking longer-term it could be something like the first two days in a monthly distribution.

As for whether there's a lot of people here using MP, it doesn't seem like it. The subject does come up from time-to-time, but isn't a frequent talking point.
I've played around with MP but could not see the advantage in using it. The direction of the trend is the most important part of my trading as I should imagine it is with everyone. That information is available, just as easily, on price charts. As for extremes, a bar chart sorts them from the fair value, which is only the price passing through the maximum number of bars over the period.

I agree that there is,probably, a lot more studying to do on MP and that I may be making this more simple than it is.
 

Rhody Trader

Senior member
2,620 264
As with any indicator or the like, if you spend enough time you'll be able to sort out what a particular price pattern means in those terms. MP is no different. For me, it's the underlying idea of what MP is showing you that is the real value.
 

sergio83

Junior member
10 0
In an exchanged-traded market like futures (which is where MP was originated) "first two official regular exchange session periods" means the first two half-hour periods after the market opens.
Hi Rhody thanks for your help.

I'm a daytrader as well. So i would probably need to consider IB as the first two hours.

But I've a question for you, where do you watch the futures session? I personally use Broco Trader and I'm trading in the 6E which should be the CME euro/dollar session right? but how come that on this broker I see anyway a session of 24 hours? how can I see the actual chicago features session?

Splitlink I find the MP really interesting because of the philosophy behind it, which give a sense to everything more than any other technique i studied. Is just that with it i feel more to do stuff because i understand the mechanism behind it and not like i'm simply following the usual strategy without knowing the very reasons behind it.
But in the end MP is just a way to better organize the same data that a better trader could see in a simple bar chart.
 

Rhody Trader

Senior member
2,620 264
But I've a question for you, where do you watch the futures session? I personally use Broco Trader and I'm trading in the 6E which should be the CME euro/dollar session right? but how come that on this broker I see anyway a session of 24 hours? how can I see the actual chicago features session?
You're looking at the electronic contract, which trades 24 hours. You may need to look at EC to see just the pit session, but I'm not 100% sure on that. I don't personally watch the futures when trading forex.
 

sergio83

Junior member
10 0
You're looking at the electronic contract, which trades 24 hours. You may need to look at EC to see just the pit session, but I'm not 100% sure on that. I don't personally watch the futures when trading forex.
but do you use Market Profile for the FOREX?

Do you know were can I axcess the EC price movements? i just need the High and Low for each haf hour.
 

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