EMini Volume Profile Daytrading

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Aug 31, 2 Videos: Intraday Sell on Retrace of Break Down

Posted by Editor on September 26, 2009

In this post, we have 2 videos, in which we will investigate Emini action, real time, on trading August 31. In the first video, we see the market during earlier trading, following a significant gap opening breakdown followed by retracement which stalled without filling the gap. As usual, we find the delta breakdown and volume indicators of the Investor RT software provide very clear and effective identification of optimal entry setups on our view of the 8 minute and 4 minute charts.

In the second video, we go forward in real time, during the trading day, as price action and intraday value levels develop. We find that our 3 time frame view of the market clearly defines the developing behavior and response to the levels which set up more good trading opportunities.

This example is useful for illustration of ways of dealing with some more tricky trading days, in which the “big” move occurs before the open, and the trading occurs in a narrow range during the day session. This kind of day requires a lot of patience, to sit and wait for smaller profit opportunities to emerge. But the volume will almost always reveal very clear corroboration of price probing and being rejected at well defined precise levels, as defined by the tools of our profile and delta based strategy. Profits may be smaller, but the risk reward is still favorable, with the precision of this structure.

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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2 Responses to “Aug 31, 2 Videos: Intraday Sell on Retrace of Break Down”

  1. Den said

    Just discovering your website and videos. Just did a Google search on Futures and Volume Profile, and your site came up.

    Extremely well explained and clearly presented. You really know your stuff. New to Market/Volume Profiling here and still confused about support/resistance in MP terms. Especially as intraday profile is developing live.

    Clearest observation I’ve come up with is: When a high volume node develops with a narrow range, then breaks out on a long candle, then the market balance has been rejected and vertical direction will follow after this horizontal development.

    Have you completed your work you want to post (noticed you haven’t posted since last September)? This might be an interesting time for new observations as the long bull rally from last March’s lows seems to be breaking down.

  2. Editor said

    Hi Den,

    Thank you for your interest. If you have found some repetitive definable action around the high volume node, and you can formulate a strategy to capitalize on the probabilities you have discovered from your research, then you have a potential edge to apply to your advantage. I have presented some very simple identifiable patterns on this blog, with suggestions for trading them. I believe the material speaks for itself, as to the consistency and high probability setups, employing the patterns I have emphasized. But I have only demonstrated examples, as the basis for stimulating further investigation. There may be infinite possibilities for variations and for very different strategies, in the context of a volume based model. I have explored many others as well.

    Editor

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