EMini Volume Profile Daytrading

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Video 2 Part 2, Market Profile Value Areas: Price Action as Market Seeks Value

Posted by Editor on July 25, 2009

Now we will continue our “research” which was begun in Video 2, Part one. Here we see Part 2, (following the link) commencing where we left off in our last post. As we progress in this review, from day to day,  we are looking at 15 minute bars, against the simple framework of our 3 price levels, Value Area High, Value Area Low, and the Point of Control. These levels are derived from the significant “markers” of the prior day’s trading, the actual volume associated with price action at every price which was traded during the day. Common sense and logic would indicate this should very solid and revealing “predictor” of critical trading reactions for the following day’s “auction process”.

But we are in pursuit of the confidence to have empirical evidence as a more convincing basis for commitment to a plan for decisive action. Therefor it is essential to study hundreds or even thousands of charts of price action in the context of response to these levels of “value”. As you watch this video, reflect on my comments with your own observations and discoveries, for the sake of conducting further research on past market data. Remember each video is building upon the foundation from prior videos. So be sure and watch them in sequence. Part 3 of video 2, which will follow soon, will complete this most basic consideration of the levels from day to day. Then I will introduce low priced, high powered charting tools, along with sources for free real time data feed for the charting software. After that we will begin to look inside the charts of each day’s trading, as we explore strategies for volume based high probability trading.

more about “Market Profile Value Areas: Price Act…“, posted with vodpod

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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