Discover and read the best of Twitter Threads about #MarketProfile
Most recents (21)
1) Sup, folks. While you're busy in your #BlackFriday spending spree, I figured it might be a good time to write a thread about #journaling and, in general, all those practices that seem to be quite undervalued in the #trading world that I find useful. 🧵👇
2) First step: preparation.
Probably you noticed that almost every day, I tweet out stuff like this:
The whole sense of these posts is to remind me in advance of the levels where I'm interested in doing business for the trading session ahead.
Probably you noticed that almost every day, I tweet out stuff like this:
The whole sense of these posts is to remind me in advance of the levels where I'm interested in doing business for the trading session ahead.
3) The procedure is very simple:
- On your analysis TF (timeframe), mark out each relevant level;
- Describe the scenarios around these levels in an IF => THEN style;
- Take a screenshot and use it as a map during the trading session.
- On your analysis TF (timeframe), mark out each relevant level;
- Describe the scenarios around these levels in an IF => THEN style;
- Take a screenshot and use it as a map during the trading session.
EXCESS vs. SPIKE
The same, but not the same. A thread on what they are and how I use them.
🧵 #marketprofile
The same, but not the same. A thread on what they are and how I use them.
🧵 #marketprofile
In its constant search for fair value, the market looks for selling exhaustion at the lows (the demand exceeds the supply and sellers are getting filled at higher prices so there’s no more interest to sell at lower prices)...
... and buying exhaustion at the highs (the supply exceeds the demand and buyers are getting filled at lower prices so there’s no more interest to buy at lower prices).
The moment you start trading using tools like #marketprofile #supplydemand zones, average ranges etc, you focus on market-generated information. Not a crystal 🔮
Order flow levels/mean averages are not MYTHICAL. They have a high probability of causing fast reversals.
Order flow levels/mean averages are not MYTHICAL. They have a high probability of causing fast reversals.
If you've opened a 'with the trend trade' and price went immediately against you, it's likely that you've hit one of these ZOIs without knowing it.
Re-evaluate WHERE the trade went wrong and look at where the previous day volume value/tpo value was, whether you've hit ATR/ASR
Re-evaluate WHERE the trade went wrong and look at where the previous day volume value/tpo value was, whether you've hit ATR/ASR
Note down these levels and next time STOP 🛑 AND WAIT ✋️⏱️
Then look for evidence of price TURNING at these ZOIs.
You will start to see an improvement in your locations and decisions.
Because it's so much easier to trade by just READING what the price is doing at a ZOI...
Then look for evidence of price TURNING at these ZOIs.
You will start to see an improvement in your locations and decisions.
Because it's so much easier to trade by just READING what the price is doing at a ZOI...
Price changes perception.
Your view of the price level on a Friday and your view of the same price at the same level on a Monday may be 2 different things.
Prices force you to think differently.
Your view of the price level on a Friday and your view of the same price at the same level on a Monday may be 2 different things.
Prices force you to think differently.
In the markets,
Situations change.
Things happen.
Sentiment moves
Prices react.
Let me repeat - Prices REACT
The degree of reaction changes and forces traders who were previously bullish to now go bearish or vice versa
Have you seen this before?
Situations change.
Things happen.
Sentiment moves
Prices react.
Let me repeat - Prices REACT
The degree of reaction changes and forces traders who were previously bullish to now go bearish or vice versa
Have you seen this before?
As reactions/ responses flow in, price starts moving abruptly
Then inventory has to adjust.
Inventory is defined as an existing position of the market participant
I could be cash market inventory as in stocks, or could be derivatives as in futures or options.
Then inventory has to adjust.
Inventory is defined as an existing position of the market participant
I could be cash market inventory as in stocks, or could be derivatives as in futures or options.
2/
For those unfamiliar with them, single prints look like this (orange box) on a TPO profile. They represent areas in which there has been no proper 2-way trade. That makes them areas of interest and, on the other hand, they can help us gauge the strength of buyers and sellers.
For those unfamiliar with them, single prints look like this (orange box) on a TPO profile. They represent areas in which there has been no proper 2-way trade. That makes them areas of interest and, on the other hand, they can help us gauge the strength of buyers and sellers.
3/
Single prints, gaps, low volume nodes. They all share a similar principle, with different degrees of relevance. But what they signal is that the market sped through that area. Another way of seeing it is thinking of them as emotional buying or selling.
Single prints, gaps, low volume nodes. They all share a similar principle, with different degrees of relevance. But what they signal is that the market sped through that area. Another way of seeing it is thinking of them as emotional buying or selling.
6 Most Used Indicators for Intraday Trading📈
A thread(🧵)...
A thread(🧵)...
1. Supertrend: The Simplest of all indicators. It is plotted on the price chart and the current trend can be determined by its placement vis-a-vis price👇
Generally, the default parameters are 10 for the #AverageTrueRange(ATR) (sedg.in/jd12hn59) and 3 for its multiplier👇
Are you facing difficulty to understand MARKET PROFILE?
Read this!
12 Simple Concepts of Market Profile
>>> Thread 🧵<<<
(1/N)
Read this!
12 Simple Concepts of Market Profile
>>> Thread 🧵<<<
(1/N)
Market Profile is a technical concept with a unique charting technique developed by Peter Steidlmayer in 1985.
Market profile is a style of plotting "Price" on the Y-axis and "Time" on the X-axis, which most of the time form a bell-shaped image as the body of the profile
(2/N)
Market profile is a style of plotting "Price" on the Y-axis and "Time" on the X-axis, which most of the time form a bell-shaped image as the body of the profile
(2/N)
Market Profile helps day traders identify Other Timeframe Participants (Big players) who have money and information power.
Our job as short-term traders is to follow these big sharks which give direction to markets.
(3/N)
Our job as short-term traders is to follow these big sharks which give direction to markets.
(3/N)
In this modern era, there is plenty of avenues to learn new studies, youtube being one of them
And, @vivbajaj 's initiatives in this area tops it all.
You choose which study to focus so that you can exploit reasonable sum from the market regularly.
But, first, you must spend TIME
And, @vivbajaj 's initiatives in this area tops it all.
You choose which study to focus so that you can exploit reasonable sum from the market regularly.
But, first, you must spend TIME
1.youtube.com/c/Elearnmarkets
2.youtube.com/c/TradewithMav…
3.youtube.com/c/TradeWithTre…
4.youtube.com/c/Diamond-TheW…
5.youtube.com/c/DefinedgeSol…
6.youtube.com/channel/UCDCm6…
7.youtube.com/channel/UCEQL_…
8.youtube.com/c/GomathiShank…
9.youtube.com/channel/UCE5wD…
10.youtube.com/c/VivekBajaj
2.youtube.com/c/TradewithMav…
3.youtube.com/c/TradeWithTre…
4.youtube.com/c/Diamond-TheW…
5.youtube.com/c/DefinedgeSol…
6.youtube.com/channel/UCDCm6…
7.youtube.com/channel/UCEQL_…
8.youtube.com/c/GomathiShank…
9.youtube.com/channel/UCE5wD…
10.youtube.com/c/VivekBajaj
Resolve, committ by allocating time every day & every week to learn for a reasonable time while simultaneously test driving in the market to see & verify how your learning could be applied in the market.
After a reasonable amount of time, Take your Baby step in to the market
After a reasonable amount of time, Take your Baby step in to the market
It's the weekend & I'd like to share with you a money making strategy in the #MarketProfile approach to trading the markets
And No ! I won't ask you to grab a cup of coffee & read this
Weekends are for more than coffee :)
But do take notes. There is a definite edge in this
And No ! I won't ask you to grab a cup of coffee & read this
Weekends are for more than coffee :)
But do take notes. There is a definite edge in this
First and foremost, to all who are new to the #MarketProfile- (MP) is a robust system of trading which involves Price, Time + Volume- 3 parameters
All 3 together, hence a bigger edge to us as traders
You can start reading about the #MarketProfile at - vtrender.com/what-is-the-ma…
All 3 together, hence a bigger edge to us as traders
You can start reading about the #MarketProfile at - vtrender.com/what-is-the-ma…
The strategy we are going to look at today is called the Initial Balance strategy
The name is important
What's in the name?
Lots! & the game too
The Initial Balance is the first 60 minutes of trading. Now you understand why we use the word Initial .
But Why 60 mins?
The name is important
What's in the name?
Lots! & the game too
The Initial Balance is the first 60 minutes of trading. Now you understand why we use the word Initial .
But Why 60 mins?
[1/X]
Basics of Auction and Profile Distribution - terms like Market Profile and Volume Profile simplified
What is Profile Distribution?
Distribution is the process of trading activity that takes place in the market auction. Some also know it by a consolidation or range.
Basics of Auction and Profile Distribution - terms like Market Profile and Volume Profile simplified
What is Profile Distribution?
Distribution is the process of trading activity that takes place in the market auction. Some also know it by a consolidation or range.
[2/X]
A Distribution tends to define the fairest area/ price where the current auction has been taking place.
However, during some trading sessions, after the market forms a distribution around a certain fair price/ value, something changes.....
A Distribution tends to define the fairest area/ price where the current auction has been taking place.
However, during some trading sessions, after the market forms a distribution around a certain fair price/ value, something changes.....
[3/X]
It could be anything - some big money stepping in deeming the price to be auctioning below value, news, event ,etc.. we don't know that and it doesn't matter.. what we are interested in is what happens after....
It could be anything - some big money stepping in deeming the price to be auctioning below value, news, event ,etc.. we don't know that and it doesn't matter.. what we are interested in is what happens after....
The Rabbit Hole is Deep. 🐇
Screenshots from some massive improvements to Market and Volume Profile coming up very soon
1. Customizations on steoirds
2. Auto Pattern Recognition - Poor High / Poor Low etc.
Will start a thread...
#MarketProfile #VolumeProfile
Screenshots from some massive improvements to Market and Volume Profile coming up very soon
1. Customizations on steoirds
2. Auto Pattern Recognition - Poor High / Poor Low etc.
Will start a thread...
#MarketProfile #VolumeProfile
1. Auto Recognition of Patterns
What is Poor High/Poor Low?
Poor low and Poor High are market profile structure which generally indicates a market that is too long or too short and the shorter timeframe players in the market has low confidence about the current market direction
What is Poor High/Poor Low?
Poor low and Poor High are market profile structure which generally indicates a market that is too long or too short and the shorter timeframe players in the market has low confidence about the current market direction
...and takes control of market to move it in opposite direction. Generally happens when the market is continuing its trend in one direction and the momentum of the trend starts loosing at the peaks which makes the shorter timeframe traders to think that market is toolong/short
Minor but powerful enhancements
We can now view the TPO value of the Market Profile Chart in Auto mode
#marketProfile #charts
We can now view the TPO value of the Market Profile Chart in Auto mode
#marketProfile #charts
Also, ATR values on all advanced charts will be viewable
#Renko #Kagi #LineBreak #PointFigure #Rangebars
#Renko #Kagi #LineBreak #PointFigure #Rangebars
Lastly, no more repaint of historic bars on ATR mode in advanced charts
ATR values locked down for every ticker/symbol and timeframe
ATR values locked down for every ticker/symbol and timeframe
#BANKNIFTYFUTURE OAIR & chopping within yRange. Imbalance move likely only beyond 9/4 range. Momentum seems to be on downside with sellers trying to hold the VWAP. If no follow through below towards day's low or yLow, shorts are likely to cover in the second half #MarketProfile
#BANKNIFTYFUTURE Bulls need to hold 19490 if they would like to have a spike above day's high and good short covering rally to open above 19900 while below 19490, we may continue to chop around with long liquidation odds below 19350 #banknifty #priceaction
#bankniftyfuture Positions closing flat into the day making it a back to back inside day with overlapping VA and likely to have expansion on Wednesday! Odds for a gap, open drive or open within the range and drive from open #banknifty #NR4 #priceaction
#BANKNIFTYFUTURE OAIR and likely to chop in yesterday's range. HVN from yesterday would provide supply/resistance & prices been rejected from ySpike extension. For any upside action, buyers need to get acceptance above 29400-29500 zone #banknifty #marketprofile
#BANKNIFTYFUTURE Been getting questions on how I pick trade locations.OAIR suggested to avoid open trade & wait for opportunity.First opportunity emerged when A period rejected from ySpike & entry right at B period high when prices came back to test. #OneGoodTrade #OptionsTrading
#BANKNIFTYFUTURE Acceptance vs Rejection, is an important concept along with how you manage your trade and emotions post you punch in the trade. Will put a blog out later today on how I generally do this. #banknifty
#bankniftyfuture likely to open in Friday's range.DTF action seen around the zone highlighted,may act as immediate reference,if taken out,can attempt to test gap.Friday's lows are critical.Expect huge volatility & swings on either sides.Avoid,if not comfortable trading volatility
#bankniftyfuture VA overlapping higher suggesting auction is controlled by buyers so far.However, this is pure DTF action as low of B,C periods,with just couple of ticks above yPOC. Single prints providing supply, can buyers have strength to absorb that? VWAP remains key!
#bankniftyfuture Total DTF action so far. Multiple rejections at few ticks from previous swing highs and D low right at friday's rally high and B,C at friday's POC. This market lacks confidence and strong hands. Expect intraday chops. #marketprofile #banknifty
#bankniftyfuture OAIR and OTD out of yRange and starting to balance. How good a job are the sellers doing? Well, not so convincing I feel. If sellers are going to spend a lot of time between 30400-40500 may result in a short squeeze back in yRange. #MarketProfile #banknifty #Odds
#bankniftyfuture Finally, some range extension on downside in C period. Hopefully, sellers in the marked zone are strong enough to keep the auction towards the downside and VWAP is going to be important! #banknifty #MarketProfile #odds
#bankniftyfuture VWAP taken out with V shape recovery, opening a fresh short covering, going to be massive on acceptance above yLow/30600! #MarketProfile #banknifty #onedecenttrade #odds
Weekend learning on basics of #MarketProfile -
Why does Market Profile fascinate me?-In contrast to what candlesticks offer,MP gives a 3D view of looking at price action - Price, Time & Volume. Is this a holy grail? Well, absolutely not! Here are some basics #MPPaatshaala- (1/n)
Why does Market Profile fascinate me?-In contrast to what candlesticks offer,MP gives a 3D view of looking at price action - Price, Time & Volume. Is this a holy grail? Well, absolutely not! Here are some basics #MPPaatshaala- (1/n)
When prices are regulated by time and are arranged in Gaussian normal distribution, it forms a nice Bell shaped curve that shows statistical probability of 68% of price range where they spend most of the time, called 1SD (Standard Deviation σ) - (2/n)
Basic building block of a market profile is TPO - Time Price Opportunity. As shown in the picture, 30 min chart is represented by plotting letters.Each letter denotes TPO. This helps to get to intricate details of how price gets plotted that a candlestick may not offer -(3/n)
In case if it's getting tougher to catch up on the terminology I've been using on #MarketProfile, here is quick thread for definitions #Glossary
1) OTF - One time framing (Making higher high, higher low in an uptrend, Lower high and Lower Low in a downtrend)
(1/n)
1) OTF - One time framing (Making higher high, higher low in an uptrend, Lower high and Lower Low in a downtrend)
(1/n)
2) VA - Value Area. Zone in which 70% of trade happened
3) HVN - High Volume node. Zone in which high volume trade executed
4) LVN - Low volume node. Zone in which little or no volume has been seen at traded prices
5) POC - Point of control. Fairest price of trade
(2/n)
3) HVN - High Volume node. Zone in which high volume trade executed
4) LVN - Low volume node. Zone in which little or no volume has been seen at traded prices
5) POC - Point of control. Fairest price of trade
(2/n)
6) VAH - Value Area High
7) VAL - Value Area Low
8) OA - Open Auction
9) OAIR - Open Auction In Range
10) OTD - Open Test Drive
11) ORR - Open Rejection Reverse
12) OD - Open Drive
(3/n)
7) VAL - Value Area Low
8) OA - Open Auction
9) OAIR - Open Auction In Range
10) OTD - Open Test Drive
11) ORR - Open Rejection Reverse
12) OD - Open Drive
(3/n)
Around the last week of October I was aware of 2 big conferences which would bring together a lot of new traders, & a few struggling ones, & I had made up my mind to speak at one of these on #MarketProfile and using the message of the market well, to stay ahead of the curve(1/n)
It was a choice for me, and I wanted to offer my time to the one who first came to me. Of the two, TC had built a reputation for conducting these events, and DE was a new kid on the block with people who had previously worked with TC. So there was no choice between the 2 actually
For those unaware, the 2 groups bring together a section of speakers through a discretionary process , for benefits ranging from gate money which is the price you pay for entry to sponsorships to selling their charting software which is true for DE and so far not the case with TC
1. The Disciplined Trader thread in PDF
2. James Dalton & Peter Reznicek - Market Profile Webinar March 2017
Thought of arranging my earlier tweets on #mp_amt in serial order. Hope it would be useful-
#mp_amt
#LearningTogether
#mp_amt
#LearningTogether
2. Composite portrait of the Model Superforecaster By Philip Tetlock and Dan Gardener in Superforcasting
