EMini Volume Profile Daytrading

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Video 2, Part 3, Market Profile Value Areas: Price Action as Markets Seek Value

Posted by Editor on August 1, 2009

Here we see the final video in our survey of day to day reactions of price and market participants, in response to areas of value which have been established during prior days of trading. Our observations of several days in succession begin to reveal consistent patterns of those behaviors, which can present recognizable opportunities to take advantage of high probability entry locations, with a sound basis for anticipating logical targets for our trades as well. This structural context adds many levels of information which can bring great confidence for the successful implementation of our trade plan.

This video is intended to bring closure to a conceptual framework developed in parts on and two of this series of 3. It is essential to watch parts one and two, and if motivated, review all three later on, to get deeper insights into the practical applicability this framework can provide for every aspect of your strategies and your trade plan. This process of integrating the volume based perspective into our trade plan, is quite useful and adaptable for many different approaches, such as long term or intermediate trading, to short term, or swing trading—or down to the level of active intraday trading or scalping. The identification of the daily levels alone is extremely valuable for recognition of support resistance levels, for indication of price direction throughout the day, entry and exit location and objectives, risk management, and trade management, and so many other variables, which represent a very significant “edge” for high probability trading.

So do your best to process the information and concepts introduced in these videos, by studying hundreds of days and sequences such as we have presented here. It is essential to recognize the common patterns of response to these areas of value each day, and it is necessary to have the confidence which can only come through experience based on extensive observation and/or research on the repetitive occurrences, in a manner such as we have introduced in these videos.

Some readers may wonder how to get access to some of the basic tools required for even a cursory evaluation of the parameters and visual representation of volume based trading variables. In the upcoming videos, we will begin to explore some very inexpensive and easily obtainable tools which provide everything necessary for access to Market Profile strategies. My objective is to provide the practical information which can facilitate implementation of the methods I am introducing here, without much undue complexity, and without much expenditure of money, or efforts required for grappling with overly complicated software options. Upon gaining access to these tools, after we have an idea of the “nuts and bolts” and mechanics of representing and reading volume profiles, we can proceed to explore further refinements in our strategies for capitalizing on the edge we gain from this powerful set of tools. Please check back for future installments.

more about “Market Profile Value Areas, Part 3, V…“, 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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