I'm hoping that this topic will become a collection of notes and rules about trading Market Profile according to JP. If a sufficiently large number of notes are collected then I will reorganize them into something easier to navigate and for us to use as reference material.

At last night's pow wow JP made a few comments. One of them that I thought that was important to record was:

Rotational Trades during a Rotational Day:
"After 2:30/3pm JP stops taking rotational trades because they are much higher risk. Chances of the market breaking out after a rotational day are high at 2:30pm and much higher at 3pm."

Thinking about this statement from a logical point of view and trying to rationalize why this might happen I came up with the following theory. (This is just my theory and I won't take offense in you trashing it.)

A rotational day is a consolidating market. Shorts are entering at the top and longs are entering at the bottom. The longer the market spends in this range the more shorts are drawn in at the top and the more longs at the bottom. So we now have a market full of contrarian and rotational traders. (I say contrarian because they are selling the top/up moves and buying the bottom/down moves).

When a breakout happens we have the rotational traders who are on the wrong side of the market getting their stops hit and exiting the market fueling the breakout. We also have breakout traders waiting to enter the market on the breakout. The longer the rotation continues the more "ready" these breakout traders are.

Based on that bit of theorizing I'm wondering if JP's warning about continuing to trade a rotational market after 2:30/3pm is based on the fact that the probability of a strong/fast breakout has now become a higher probability because of the stops and new entrants waiting at the breakout prices...?