Market Profile questions about the Value area

I've a doubt.
I understand very well the concept of Market Profile, I've been studying for the last past year and this year. Having said that , I have trouble distinguishing, when to take the Value Area as breakout or a as counter-trend (the rule of 70% of the time going through yesterday value area), for example today it was bouncing inside the Value Area, also on the trade setups for breakouts i see instructions on the forum for a stop of 1.5 is this still valid or is too small of a stop in today's market?

Thanks for your help.

Simple answer is - look to trade inside Value Area when value area is relatively wide. Look to trade moves away from value area when VA is relatively narrow. I always wait 30 seconds to see how price trades around value area before taking action unless I have a high level of conviction based on higher time frame structure and developing day type. Standard stops almost always need to be adjusted for high volatility times like now. I am currently trading 1/2 my normal position size (1/3 for some trades) but am using wider stops and bigger targets.

I agree with Davenet20's answer. I would also add in the current environment with exceptionally large ranges we may find that Market Profile concepts do not work as well because 1. they were developed and tested in common market scenarios (i.e. average volatility) and 2. when we see this type of market it's only for a few days so there is very little data to use to observe and test the market with.

Hi,

I would like to mention that value area High and Low is always relative to previous days range. I would like to combine 3 days or 5 days trend and then take a call when to enter. IF the previous 3 or 5 days had a large range in terms of VAH and VAL.. most of the time current days VA behaves accordingly. Hope my observation helps.

I would also suggest that POC is more significant as entry strategy than value area coz most of the time that acts as a pivot point than the Value areas. Please do correct me if i am wrong.

Happy trading

Regarding trading POC, VAH and VAL, I always struggled which one are more important. Today, last 2 days etc.. combined. I now use Mark Fisher ACD system to see which levels are really important to BIG MONEY and what their intentions are for the day.

What I find very helpful to use Market Profile to get a sense of the structure of the market and Mark Fisher system (The Logical Trader) to get reference points to day trade crude oil futures.

I thank Mark Fisher every day because his $45 book saved me from loosing money for 2 years and have been successful for 8 months now.

There is a reason Paul Tudor Jones called Mark Fisher one of the finest pit traders ever. Mark Fisher developed this system while attending Wharton for his MBA while trading full time. To top of it off he graduated with honors.

Anyone interested in discussing Mark Fisher and Market profile, i can be reached at [email protected].

I will like to share ideas with fellow traders who use Market Profile to trade /es and crude oil futures. I trade full time and trading is my source of income.

I can be reached at [email protected] or at this forum.

Boston,MA

Thanks for the info destiny. Can you summarize your trading strategy for us? I assume that it is not a secret because it is based on Mark Fisher's book.

Hi day trading, there are no secrets in trading. After spending $15k on different educational courses over last 2 years, Mark Fisher ( his firm clears about 30% of daily crude oil futures)book showed me and the results have proved to me that SIMPLICITY IN TRADING IS THE KEY.

Here is a link which gives primer on Mark Fisher system- http://www.clever-trading-strategies.com/primer_on_acd_method.html

Mark Fisher system called ACD system- is best suited for volatile instruments and volatile trading days. Before i came to know about Mark Fisher ( by chance when i saw him on CNBC about a year ago)i had anxiety before start of the trading day and during trading day trying to figure out true intentions of BIG MONEY and direction of the market for that day.Mark fisher system made me take out all the indicators and trade like a pit trader.

System is so simple that traders just do not buy into it. I myself had to practice for 500 hours to get confidence. I have tried to help 4 other traders with this system. They scream with joy and amazement when on the most volatile days they see the results. Traders run into problems when they do not realize that these set ups comes about 30% of the time ( basically when markets trade vertically)and they try to trade every day like it is a one time framing day.

Secondly, on most volatile days per mark fisher system is the day to put the peddle to the mettle- without enough screen time ( in my judgement it takes about 1000 hours to get ACD under control)most trader just gets blown away.

4 traders , i am trying to help are smart, hard working ( in their mind) and have been trying to be successful for 2 or more years. They just do not see why they need 1000 hours of screen time ( in demo account )to get a simple ACD system under control. That's where the problem lies. Majority of people do not have patience and right combination of FEAR and GREED.

I will be happy to answer further question once you have a chance to read the link i posted.

Boston, MA

Your message is more like advertising

Originally posted by destiny

Hi day trading, there are no secrets in trading. After spending $15k on different educational courses over last 2 years, Mark Fisher ( his firm clears about 30% of daily crude oil futures)book showed me and the results have proved to me that SIMPLICITY IN TRADING IS THE KEY.

Here is a link which gives primer on Mark Fisher system- http://www.clever-trading-strategies.com/primer_on_acd_method.html

Mark Fisher system called ACD system- is best suited for volatile instruments and volatile trading days. Before i came to know about Mark Fisher ( by chance when i saw him on CNBC about a year ago)i had anxiety before start of the trading day and during trading day trying to figure out true intentions of BIG MONEY and direction of the market for that day.Mark fisher system made me take out all the indicators and trade like a pit trader.

System is so simple that traders just do not buy into it. I myself had to practice for 500 hours to get confidence. I have tried to help 4 other traders with this system. They scream with joy and amazement when on the most volatile days they see the results. Traders run into problems when they do not realize that these set ups comes about 30% of the time ( basically when markets trade vertically)and they try to trade every day like it is a one time framing day.

Secondly, on most volatile days per mark fisher system is the day to put the peddle to the mettle- without enough screen time ( in my judgement it takes about 1000 hours to get ACD under control)most trader just gets blown away.

4 traders , i am trying to help are smart, hard working ( in their mind) and have been trying to be successful for 2 or more years. They just do not see why they need 1000 hours of screen time ( in demo account )to get a simple ACD system under control. That's where the problem lies. Majority of people do not have patience and right combination of FEAR and GREED.

I will be happy to answer further question once you have a chance to read the link i posted.

Boston, MA