Tuesday, 17 May 2011

Identifying Trend Days

Being able to identify trend days can be a big plus. Often I only want to take trades in the trend day direction. If the trend day reverses, I'll miss a trade until I recognise it. I may also stay in a trade longer and hold back my second and third scales. Trading Flo with trades authorised in only one direction is also possible.

How to recognise the trend day is easier with MarketProfile. Usually there is little or no rotation, TPOs are only 2 or 3 wide, and there are single prints and zippers.

Without MP, I rely on the long CCI. I can also change my setting from 45 to triple that:135 to see the trend in choppier markets. The EMAs are also a clue when they remain the same colour.

Today's ES was not a trend day but there was a trade of the day I want to share in the vid.


  1. Thanks for this posting and the video. Very helpful. What made you decide to use a 5 point range bar rather than a 3?

  2. Thanks EL for keeping the good work up! Appreciated!

  3. Hi EL,

    Thanks for talking about Market Profile and how you use it. It helps us understand how you think about the markets.

  4. Tom,

    What does TPOs were only 2 or 3 wide mean?


  5. Anon 11:14, TPOs are MarketProfile terminology and my expression meant that the Profile was only 2 or 3 rows wide.