London session market profile preps and journal for DAX
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Thread: London session market profile preps and journal for DAX

  1. #1
    This is actually a restart of my own thread”My market profile commerce plan”. The motives are three folds. Firstly, I didn't begin the thread with a proper introduction of the philosophy or methodology, therefore not lots of people have any clarity on what I am talking about and also how to use the material that I shared. Second, the thread began hastily that I haven't thought through what I want to talk about and what I want to achieve by writing those articles. Last but not least, my trading is structured around two periods, London session from 9:00 AM to 12:30 AM CET once I exchange mainly DAX and CAC on the side, along with NY session from 15:00 PM to 18:00 PM once I trade mainly NQ and ES/YM on both side. In between there's an occasional FX session that I follow losely a few major Forex pairs before the NY open (13:00 PM to 15:00 PM). Since the US equity indices have very different personalities than people of European counterparts, a better approach is to structure my journal to those two distinct sessions so that I would have more of the coherent flow and harmonized content in every thread.

    Aims:

    Writing a journal is all about to bring accountability into my trading and accountability induces professionalism. Placing my journal in front of the general public isn't about showing off or bragging about myself by only showing the winning transactions. It is all about acting with full honesty and overall transparency that I would expose both the bright side and shadow side of my ego. I am aware that my ego loves to be right even more than to be profitable. It enjoys to pick tops and bottoms so that it feels like at the top of the planet. My ego also enjoys instant gratifiion that it favors quick but small profit instead of the slow but big profit. The very best form of response to the ego isn't to criticize them to expose them under sunlight and allow the ego dissolve like the candle fire in the sea of sunlight that is overwhelming.
    Description of the methodology:

    The methodology could be described by the acronym B.A.P.:
    B(ias) -- The directional bias describes the opinion of the greater timeframe player. This bias is derived in the market profile chart (see later section for additional information )
    A(rea) -- Area of interest is your loion where either the responsive or initiative players are very likely to measure in the market to initiate a transfer or protect their position. It is mostly derived from the market profile chart (see later for additional information ).
    P(attern) -- Short term price action pattern helps to refine entry. The patterns that I'm watch in the uniRenko charts are, Wolfe pattern, handle and cup, Harmonic patterns and so on.
    Premise of the methodology:

    Firstly, Market profile is not an indior. If you're looking for an indior that provides you buy or sell signal, then this thread isn't for you. The target of the market profile is to picture the circumstance. It seeks to bring the backdrop to the forefront.
    You might ask, what context you're talking about this? Does market profile describes the market or even the monetary policy? The answer is no. The market profile describes how the speculators, your competitors, are positioned in the market. Believe it or not, 80% of these market movements aren't caused by the new money coming into the market but by the repositioning of the greater timeframe speculators that are in the market already. This practice is called inventory adjustment. The inventory adjustment could be caused by a change in the opinion, change in the fundamental state, or just, adjusting an overly long/short inventory. Please consult with Jim Dalton's book, Market in Profile, for detailed discussion within the topic of inventory imbalances.
    I don't understand and don't care about the legitimate cause the greater time frame trader's inventory adjustment action. But I can decypher those activities in the market profile charts. There's not any better way to obtain an edge than knowing how your competitors is feeling, the likelihood of what they are doing, and how they will probably respond? The million dollar question is how?
    Remarks: Why Market profile functions

    I don't want to bloat my article to several page long preach of the auction market theory and the market microstructure. All you need to understand is that for every buy there's somebody taking the other side. There may be no such thing as”more buyers than sellers”. Everytime I heard from those so-called trading coaches stating something similar to”the market goes up since there are more buyers than sellers”, I just could not help roll my eyes. Because it isn't possible. After an auction finishes, there needs to be equal numbers of buyers and sellers, always. The significance of this axiom is that a well traded balanced place includes a high number of buyers and vendors. After price being pushed away from this balance, 1 side of the market will feel the pain and also will be very likely to cover their position. This will make a run or urge via long liquidation or short covering. Our job is to identify the side who's feeling the pain and also profit in their losses.
    The best way to read a TPO chart:

    The market profile charts, or even the so-called TPO charts, might seem dismissive to many. But actually they are not complied, they are only different and they compresse many data points into a single profile compared to conventional candlestick chart, where a single bar is composed only 4 data points, open high low and close. To simplify the process, I am going to concentrate on the following 3 aspects of the market profile: Loion of the balanced (thick) profile in the chart Value area of yesterday in connection with where we open today -- inside or outside of the value Identify the anomalies in the profile, like openings, single prints or high-profile, weak high/low. The balanced profile is where large inventory is built. Big moves are often initiated from balance. Where we open relative to yesterday's value place gives me prejudice as well as the prior day's value place gives me commerce loions. The anomalies provide me targets.

    There are mainly four patterns in the TPO chart That I'm watching for trading opportunities:Double distribution in daily, weekly or monthly profile. The filling can be anticipated for the area involving to highly traded manners; TPO single prints holes expect to be repaired in the not too distant future. Some response can be anticipated in the very first touch; Buying and selling tail implies rejection; tear and tear indie a beginning of a new fad.

  2. #2
    Bravo on a very interesting-looking journal, BCU

    Can you take VWAP into account when utilizing your MP charts, I wonder?

  3. #3
    Quote Originally Posted by ;
    quote interesting, so according to this pattern, next movement would be a big upmove again...
    The Wolfe wave is a classical brief squeeze pattern.
    See where the market maker has targeted after breaking out of this wolfe wave?
    The stops above the initiation stage of the down movement.

  4. #4
    Finally is theforexintuitiveback in purpose.
    Too late to post the dawn homework.

    But DAX has simply reacted from past Wed's naked POC.
    It might mark the non of the London session.

  5. #5
    Day interval traders are too long. Market would have to return to correct that overly long stock before it could go higher.

    I am seeing 11890 for your own downside target.

  6. #6
    Quote Originally Posted by ;
    In the meantime, there is a Wolfe wave entrance in CAC in the point 5 in 5105 in play. picture
    First scalp target off.
    Second, third party stops are tightened.
    A quick and Effortless scalp in Cac.

  7. #7
    In the meantime, there is a Wolfe wave entry in CAC from the stage 5 at 5105 in drama.

  8. #8
    Quote Originally Posted by ;
    Bravo on a really interesting-looking journal, BCU Can you consider VWAP in to account when utilizing your MP charts, I wonder?
    Great morning Jtrade,

    Great to see you .
    Yes I look at the weekly VWAP for the session TPO charts.
    I also examine the money session VWAP and complete daily VWAP for my intraday uniRenko charts.
    Btw, You are also utilizing uniRenko charts, right?

  9. #9
    Goal attained in CAC -- an ideal touch of this 1-4 trend line that's the target for its Wolfe wave pattern.
    Flat for your morning.
    As the DAX is going slow for the afternoon, I'm searching for shelter in CAC.

  10. #10
    Quote Originally Posted by ;
    You are also utilizing uniRenko charts, right?
    Yes, indeed - just how do you get the neutral colouring in your CAC pubs - a paint bar presumably - and is that the PriceActionSwing zigzag, please?



    Time to walk my puppy...

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