Market Profile

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Re: Market Profile

Postby Apprentice » Mon May 30, 2011 12:23 pm

This is a temporary fix
While I do not offer anything better.
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Re: Market Profile

Postby wilson2 » Mon May 30, 2011 2:17 pm

OK!
now it can work with FRA40.

Thanks a lot.

Best regards
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Re: Market Profile

Postby dlouisbriggs » Mon May 30, 2011 3:15 pm

The current market profile histogram only utilizes the current price data that appears on the screen. One has the choice to zoom out (and lose graphic detail) or limit the histogram to a smaller sampling. Would it be possible to create an option that would allow the user to designate the period of time for the histogram, independent of the zoom level of the currently displayed data? Thank you for a great indicator.
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Re: Market Profile

Postby emjay-short » Fri Jul 08, 2011 9:31 pm

dlouisbriggs wrote:The current market profile histogram only utilizes the current price data that appears on the screen. One has the choice to zoom out (and lose graphic detail) or limit the histogram to a smaller sampling. Would it be possible to create an option that would allow the user to designate the period of time for the histogram, independent of the zoom level of the currently displayed data? Thank you for a great indicator.


Indeed. This indicator does use a lot of CPU and I can only use it for one chart at a time. I did read about it in two books briefly, but not in detail how it is used specifically. Well Google did help me to make more sense and get a glimpse how to read it (Volume @Price Level).

MARKET PROFILE QUICKLY GIVES THE TRADER A VIEW OF HOW THE MARKET IS DEVELOPING, WHAT PRICES ARE BEING ACCEPTED BY THE MARKET AND WHAT PRICES ARE BEING REJECTED.


Market Profile is a tool for organizing time and price data, graphically representing how volume builds at various prices over time. When we see most trades occurring within a relatively narrow range of prices, we know that the market is in balance. Price will probe the edges of this balance area--called the value area--as markets constantly update their estimates of value. If prices higher or lower than value cannot facilitate trade (i.e., if higher prices don't attract buyers or lower prices don't attract sellers), we will tend to trade back into the value area. If these probes to the edges of the value region do facilitate expanded trade, we will break free of the value area in a trending move. That trend will continue until sufficient sellers or buyers perceive value in the new prices and take the other side of the trade, beginning the process of forming a new region of balance.

My specific best practice is to be aware of value areas at one level larger than the timeframe you are trading. Very often, a breakout at a shorter time frame occurs within the context of a longer-term market bracket. Knowing where value is located on the longer timeframe helps you identify price targets for the shorter-term move. (via http://traderfeed.blogspot.com/2007/02/market-profile-best-practice-in-trading.html)


Things I found via Google (one short evening).

  • http://www.cmegroup.com/education/interactive/marketprofile/handbook.pdf
  • www.cmegroup.com/education/interactive/marketprofile/
  • http://www.trading-naked.com/library/market-profile-softwarereview07.pdf
  • http://www.earnforex.com/forex-e-books/forex-market/Market_Profile_Basics.pdf
  • http://www.sidewaysmarkets.com/2010/08/market-profile-day-trading-entry-rules.html
  • Webinars about Market Profile: http://www.traderkingdom.com/market-pro ... d-webinars
  • And there are a dozen or so YouTube videos about Market Profile. Some more useful than the other.
  • BOOK. Mind over Markets by James F. Dalton, Eric T. Jones, Rober B. Dalton - that whole book is about Market Profile, how to interpret it and use it.
  • BOOK. Markets in Profile: Profiting from the Auction Process by James Dalton, Robert Bevan Dalton, Eric T. Jones. This is a newer book (2007) also about MP.
  • BOOK. Steidlmayer on Markets: A New Approach to Trading - is about how to read the market, read the market with MP.
  • A trader uses MP and tries to explain his thinking (over 1 month) http://www.elitetrader.com/vb/showthrea ... genumber=1
  • Another Trader on MP http://www.elitetrader.com/vb/showthrea ... eadid=9727
  • I've attached one Screenshot with some annotations after I dabbled over the many charts this evening and got a first clue how to use MP. Really looking forward to read more about MP and eventually using it every day.


Suggested Options to Optimize MP for Usability:

  • Option to show or don't show current days Market Profile as it always just develops for today ... And in all the analysis I read - they did not use the current day. They always use the last days Market Profile to anticipate today's Price behavior. Thus we don't need today's Market Profile as it develops.
  • Option to show only the last X days of your choosing. Like you would with an RSI/SMA choose your period for calculation. Calculating and showing only the last 5 or 10 days should take off the edge of CPU&RAM usage.
  • Option to show on today's day yesterdays VAH&L (Value Area High, Value Area Low), 1 standard deviation line above VAH and 1 standard deviation line below VAL, POC (Price of Control). Just like you see/use Pivots (CP,S1,R1,S2,R2). See Pic Attachment.

Thanks in advance @Apprentice for putting this on the development cue. :roll:
And I hope my contributions were useful enough for all the other readers.
Attachments
Options-for-Market-Profile1-FXCODEBASE.png
Example-How-To-Market-Profile-PRICE-helps-Identify-Opportunity.PNG
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Re: Market Profile

Postby Apprentice » Sat Jul 09, 2011 3:45 am

Show Only Last Period Option Added.
This is only a quick fix.
Until I will have time to do a major update.
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Re: Market Profile

Postby FHusseini » Thu Jul 21, 2011 7:49 pm

Apprentice, you are doing a great job on this.

We need to see a major update on this indicator which I hope will be soon and in-line with the suggested options from emjay-short.

Good luck!!!
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Indicator Update - Market Profile

Postby dspurr624 » Sun Aug 07, 2011 7:06 am

Apprentice,

Kudos to you for your work on this indicator ; Ideally it would be nice to see:

1. VAL / VAH for each of the profiles.

2. It would be nice to have an option to turn on or turn off the text at the top of the profiles. For me, personally - that information in not as important in my decision making process. I'm more interested in the VAL/VAH for each of the profiles. these are the levels that other traders watch.

3. It would also be great if we could show a daily profile or a weekly profile and a monthly profile. In other words, the ability to show each day by themselves on intraday charts - The ability to show 10 days, 30 days, 100 days..... (combined in one large profile) on the daily or weekly or monthly charts. This is important as it allows us to see longer term price development.

I appreciate all you work on this and know that it's probably a ton of work. I do some programming in Thinkscript and know that when you make a small change it's hours of work. Thanks again

DS
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Re: Market Profile

Postby bomberone3 » Fri Oct 28, 2011 6:46 am

Dear Apprentice,
could you explain how to use the indicator for real trading?
Have you got any ideas to built trading strategy?

Also i write before, could you code any indicator of market delta software for trading station?
See fulcrum trader video that explains how to use them.
My best
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Re: Market Profile

Postby Apprentice » Fri Oct 28, 2011 8:30 am

Although this is not the main purpose of this forum.
I'll try to answer you.

First, in my trading I do not use indicators.

Market profile tells you where the POC is.
Point of Control is the price for which participants agree that it is appropriate.
Basic idea of any trade is Buy Low, Sell High.

Buy below the POC, Sell above the POC.
Close at POC,or , Lower for Short Trade, Higher for Long Trade.
This is a simplified strategy.

Be sure to read this article.
Market_Profile_Basics.pdf
(471.46 KiB) Downloaded 2839 times


Or post on my blog, where I outlined some basic patterns.
http://themarketcycle.blogspot.com/2010 ... zorci.html
Here can you find other resources on this topic.
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Re: Market Profile

Postby bomberone3 » Fri Oct 28, 2011 2:44 pm

Thanks Apprentice.
You are great !

Just a thing I am confusing market profile and Volume profile, what are the difference and what is
the more profitable the trading technique of the two?
My best.
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