ES Wednesday 7-23-2014

Yesterday's value was clearly higher.
But with a gap below and those poor lows @1959.00 & @1957.25, short could be the way to go.

Originally posted by Aladdin

Yesterday's value was clearly higher.
But with a gap below and those poor lows @1959.00 & @1957.25, short could be the way to go.

I think you are missing the main premise behind Market and Volume profiling. MP was originally created to identify the rotation(back and forth movement) of a market based upon changes in volume at price levels. The rotation is caused by the auction process. A drop of 20 points in the ES is a relatively rare occurrence and not something MP was designed to identify.

The one fact that most overlook is that the creator of MP has discredited it usefulness in today's markets, as it was designed to serve as a proxy for volume, for at the time real time volume was not available on the floor. Extensive recent studies have shown its effectiveness in the 35-40% range, similar to the hit rate of a coin flip in determining turning points. The success of traders using it comes from their money management skills which is almost always underappreciated.

"the creator of MP has discredited it usefulness in today's markets..." where can I read about this?

TI Anon,
Regarding my first post: I was thinking aloud that a long entry was not on my mind, with that gap below and those poor lows.
(In hindsight however, the market today favored a long trade).

For those interested: after the market closes, WindoTrader is hosting a webinar with Brett Steenbarger.
http://www.windotrader.com/leadpages/bretts-july-23-webinar.html

Peter Steidlmayer has had several presentations recorded and presented in front of various groups where he has criticized and discounted his MP work for today's markets. Do a Google search and watch. Pay attention to the parts of presentations where he discusses and takes questions on his own trading, for his comments on MP's usefulness in today's markets.