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Feedback on Market Profile Plays

Greetings Everyone,

First, thank you to everyone who leaves this valuable information on this FORUM each day, it does NOT go un-noticed or GREATLY appreciated. thank you and please keep it up.

I wanted to get some feedback going on the following topics:

1. Are you using the ToolPack service, and what are your thoughts? Do you fully-utilize the tools included? Which do you like best? Which do like least? How do you use this Service to make your trades tighter and more profitable?

2. What specific lines of support/resistance do you see more effective? Do you see a combination of any that hold well when they are converging? Any guaruntees? Any that you should just remove from the chart?

3. Daily prep: What are you doing for daily prep? What steps are you taking to make sure that you are using the MArket profile numbers to your maximumum efficiency?


Ill start...

1. I have been manually entering the Market Profile numbers by hand ( I use eSignal) and have been setting manual price alerts on my chart to alert me when price moves within 5 points of that line. This works well, but is time consuming, which is why i am looking at the ToolPack this week. I signed up for the trial period, and used it yesturday, albeit not my primary chart, it was in the background and it clearly provided some excellent info. The jury is still out on the Developing Value Areas for me, as they seem to clutter the chart a little too much, so I am looking to seperate the Value Areas from the Developign Value Areas on seperate charts. Time will tell if I like this software toolpack. Sometimes drawign by hand is easier and you dont need to worry about the lines not being drawen correctly, even though they most likely always will be by a CPU.

2. I see GREAT bounce off any combination of major support and resistance, to include Pivots, Fib Levels, Value Areas, & especially when they cross with Lines in the Sand (round numbers). It seems to take price a few times to break these lines of supp/resistance, which gives you soem pretty good "bounce".

3. My prep begins at the close, when i get rid of my old data and get my new Market Profile data from this Forum, my Fib Levels from the MyPivots page, and set my OHLC from the previous day. I liek to doubel and triple check them all, and then i do soem short tick replay to go over my trades during the times in which I was in the market.

I look forward to hearing from everyone and will keep sharing as my days grow longer with more experience. have a prosperous day!
Joe, if you're finding that the Developing Value and Developing POC lines from the DVATool in the ToolPack are getting in the way but that you still want them on the chart you can change their colors so that they almost blend with the background and are therefore less intrusive but you can still see them and that will allow you to see clusters.

It sounds like you are looking at clusters of levels. This appears to be a good strategy simply by dint of the quantity of traders examining these levels. If you assume that there is a certain percent of traders looking at and acting on each level then when there's a clustering of levels there should by logical reasoning be a higher percent of traders acting on those levels.
thats a great idea. Youre correct, the tool is too messy on my chart and leaves my head spinning. Ill try to black out the colors....
If you right click on the chart and then select "Edit Studies..." from the menu you will see the Study Properties dialog. Click the Study drop down in the top left corner and select DVATool. Down below you will see a list of all the parameters that you can change for the DVATool including the colors of each of the lines.
Hi Joe,

In terms of Market Profile and numbers I can state the following:

1)I don't find much use for the POC unless it coincides with the highest Volume area of the day...many times this will be the case.

2) I like the Vah and Va low

3) Keep track of where the single prints are from the previous day and the current developing day...great for targets and trade initiation

4) I Don't use the tool pack..I do most things manually on my charts to get a " feel" for the action

5) I like overnight High and low and first hour high and low

6)Don't use developing value but will sometimes try to get an idea for what 'Type" of day is forming. Too many times you will have a day that seems to be consolidating and then it breaks out in the last two hours so I don't give this as much significance

7) I watch for triple 5 minute bars as they get tested too many times to trade against them

8) I'll take a look at the daily pivots but won't trade them as a " stand alone" s/r yourself I'm looking for confluence as I want as many traders involved ( or at least watching an area) for different reasons

9) Previous days high and low - RTH

10) any high Volume area form the daily or multi day chart..I have Investor R/T which lets me group days together and volume so I can see what prices have attracted the most activity. This is good when we consolidate for 1 - 3 days.

You seem to have a good handle on the numbers.I suggest you may want to add the concept of the triples and the single prints to your trading arsenal especially if you are day trading.

I use all the S/R levels and have a tool that calcs after manual input of HLC and VH and VL. Also, the tool I use puts in splits of the S/R levels which seem to be respected as much as any other level
care to share that tool? please? :)
Originally posted by jd007

care to share that tool? please? :)

Bruce Johnson,I would love to see the Trade Station eld for market profile.Thanks