Thursday, 19 May 2011

Timing is Everything

Market Profile is great for painting an idea with a broad brush ,but for short term traders it lacks a precise timing component. It does show where value is and where it may be going but these areas are not knife points.

This why the range bar charts are of such importance. The range bars can be traded on their own, as I can time my entries and exits quite precisely. The proof is the performance of Flo, my autobot. She consistently provides a high win rate profitably.

But timing short term trades with the Profile is more difficult. You can see volume being laid down but the order flow is not visible.

Putting the two together is the discretionary trader's solution to trading consistency. Adding the Profile to Flo's auto entries provides the context allowing more intelligent scale outs and more relevant stop loss areas, rather than the "average" optimised ones.

A good example of all this is the DAX today. I'll explain it in the vid below.


  1. Tom, thanks for the video again; these are enormously helpful to see how you work thru the ebbs and "flows" of developing trends and retracements. One question;I tend to keep several range bar charts open with diff. settings to judge which one is appropriate for the day, what is your approach?

  2. Rdftrd1, I pick one based either on previous day or overnight. I can only trade one trend and that is the trend of the one range bar chart.