Thread: CBOT Market Profile

Originally Posted by ;

I must respectfully disagree about the CBOT handbook, while Dalton's novels were great(really great), I believe the handbook is every bit as important. I never looked in any part for a rehash since these were concepts that were introduced for the first time. I seem at Steidlmayer's work(the handbook) as the foundation of this pyramid, everything then was constructed off that foundation.

Ok.

The concepts of which range and trending were not new in any way, I've novels dating back out of the 60s w/ those concepts. And while the MP picture was certainly new, the concepts of where price is comfy and average price were certainly not new... daily pivot points were nothing if not an attempt to calculate the prior average day's price.

Not to say the book is not great tho, it is definately a worthwhile read, and when taken in context for the time it had been written I certainly agree that there is a lot of new material there general. It's only that the CBOT version is tough to get thru, and starts tender.

Steidlmayer's work is a worthwhile read too. I just figure most ppl would gain from newer adaptations as their first read since they pay the dry material more quickly, and approach the method for a method (allowing ppl to refine their own systems out of it), rather than a pair of disjointed parts using systems for each.

Originally Posted by ;

http://www.enthios.com/price_histogram.htm

Hrm... I don't think that covers a fraction of the profile concepts. The market auction concept is essential to knowing a day's equilibrium between time frames. Without that, there's no way you could make the picture profitable over time. Simply put there are times you should be evaporating the PoC (or carrying the high/low breakout) and times you should be evaporating the extremes.

Understanding how to read balance/imbalance is what's made me always profitable, and given me a higher than 50% success rate.

If I had to summarize what I've heard from the MP, it would not be a have a brief here, consider a lengthy here kind thing. It'd be the market includes a opinion that reflects itself as price, if you learn to read the opinion first you will be prepared to observe opportunities as they appear.

95165 Does this help anyone?

Can this be altered to show Market Profiles on volume rather than price?
I know that FX volume is not true volume but I am still seeing some interesting correlations between the price ranges that happen with high volume the previous day and how they can be significant price points for the following moment.
https://www.forexforum.co.za/attachm...9205745824.mq4
https://www.forexforum.co.za/attachm...7174952777.ex4

95165

Originally Posted by ;

Knowing how to read balance/imbalance is what's made me consistently profitable, also given me a greater than 50% success rate.

It is absolutely amazing stuff to me personally. Just just following the development
of Buyers and Seller Curves, watching price as it retraces to the
curves and viewing price get gunned by what exactly are probably Other
Time Frame participants when it gets away from areas of commerce
facilitation are only a couple of the things that may be observed!
Wow. This was a wonderful run-on sentence. LOL!

95165I do not use MT4 or anything like that but I'm completing a spreadsheet in Excel that uses Dukascopy price and quantity information to create action distributions over price (yes, I know that the quantity is sort of but I'm more worried about relative values . absolute values).

I'm using the 121 hourly pubs from every week as my session and finding the price and quantity based POC's as discussed in Hanz's excellent page.

95165-FxSurfer

Thank You for the Document.


-Rabid

I hear ya and love your input and view. You're right, Dalton's stuff does have newer adaptations and is a'better' read all in all for most.

For me though, most dry stuff is gold as well as the handbook is DRY.
I enjoy the bolts and nuts or disjointed because you state (great way to put it).

Splendid tape reading to all.

95165 Super-Basic MP pdf:
https://www.forexforum.co.za/attachm...1583395610.pdf

95165I haven't drifted about here much yet
however, it might be of use:
http://www.mypivots.com/forum/default.asp?CAT_ID=4

If it is in bad form to place a link to some other forum
let me know and I will delete this post.

95165

Originally Posted by ;

Super-Basic MP pdf:

This really is a gem, and also a fundamental concept which I overlooked in all the clutter of this huge CBOT book:

Volume is the key to understanding Market Profile. If prices go away from the worth place but volume starts to dry up, it's likely that prices will move back into the worth place.
This type of motion indies that sellers are not happy that prices are below worth and buyers are not happy that prices are over worth. Trading action may increase only when prices come back to the worthiness place. If, on the other hand, prices diverge from the value field with rising trading action, that indies market participants are reevaluating their thought of worth.

95165While true in theory, in practice it is not always (or even frequently ) accurate. Volume does are inclined to earn a summit in front of a change, so if you find a reduction in volume following a set of increased volume pubs, yea you could get a change, but that in hindsight.

At heart, the problem is that not all times have equal volume. Compare 8am gmt to gmt, or gmt to 7am/8am gmt. There's a natural ebb and flow to volume just as there is price, it is not a change in volume that should alert you... but rather an unusual shift in volume.

Take for instance overnight trading. The volume ought to be non-directional and light. Whenever you have an unusually heavy and directional burst of trading through a normally very light session (ie: overnight) that's a huge blaring sign of a new imbalance. Just look at how large overnight sessions, fashion days and range breakouts pair up... it is crazy obvious once you learn to search for it.

I mean think about... What is a gap if not only a large amount of overnight trading? You know how many day traders utilize gap egies profitably? Entire books have been written on it. I have some of them. It's all imbalance tho, we do not need to enter a lot of rules that are fancy that cloud our judgment.

Anyway, all of that makes this much harder than it needs to be. If you use range balance and trade in the direction of an imbalance, life is good and easy. The basic concepts here are insanely easy. Price traveling thru time. Price versus time, price in time, price at particular points of time, price along time, it is all price with time. A change at gmt means something different at 10am gmt than one, as an example. It price and time. Volume is a tag along.

95165

Originally Posted by ;

If you merely use range equilibrium as your base, and commerce only in the management of an imbalance, life is good and simple.

The basic concepts here are insanely easy.

It's only price and time.

Due Rabid!