ES Tue 7-26-11

Market opens below value area so market profile theory would have you shorting the market at 1333.25 and so far you would have suffered a 1 point draw down when the market moved up to the high of 1334.25.

The L bracket single from 7/19 at 1316.50 would be a typical target or reversal point for this MP trade.

Thanks for opening the Forum and for the comments

first decent volume

Update. Maybe short is not in cards yet... my stop is close

Bulls trying to hold above PP at 1332..very sticky area ..square of 9 is also at 1333

Originally posted by Lisa P

first decent volume

Click image for original size

Out of that short at Low Volume node @ 1330, also near VWAP (red line)

One time framing long. Entry @ 1331.00, stop @ 1329. Target 1336.00
Need to clear Lisa Ps Mr. Big Seller, O/N swing low and PP to work.

Stop moved to 1330 in case 1332 fails.

taking off until 2:30. This i mind-numbing

An update before I go. SHorts beware.

Originally posted by Lisa P

taking off until 2:30. This i mind-numbing

Yup, very slow; stopped moved to BE 1331.00

Market Profile summary for the day. My first post showed how a market profile trader, following the common MP strategies, would have sold the VAL at 1333.25. That trade showed an immediate 1 point draw down followed by a best-case run up of 7.75 points followed by a 1.75 point draw down before moving into profit again for a subsequent best run-up of 7.5 points. This assumes that you held the trade from the initial short at the VAL through to the end of the day which is unlikely given the trigger happy nature of your average day trader

I hope that some are finding value in these market profile oriented posts. I'm trying to be as objective as possible. Feel free to call me out if I've miscalculated one of the figures or missed a classic MP trade etc.