Tuesday 31 March 2015

Where and When

Peggy Lee had a song, "Where or When". For me, trading is "where" and "when". The two pics below each give at least three or four great trades with a couple of hours: the ES and the ZB, both great markets. The MP provides the "where". I mark up my Profile before the RTH market opens and I know in advance where I will do biz. I then use order flow to provide the"when" component of the equation.




 Two completely different markets but similar patterns and similar opportunities. Market Profile is probably the greatest tool devised. It is perfect of telling me the "where". I can use it for the "when" out of the box but by using order flow charts, Volume Imbalance charts as marketDelta calls them, I can get an even higher win rate and more profit.

I'm in Dubai again this week enjoying the sun. Australia is still a little too far for a week's break but hopefully the planes are getting faster.

4 comments:

  1. Hi EL, if you were trading the afternoon session of ES, would you continue to use yesterday's MP for 'where' ? Or, would you switch to today's profile for 'where' instead ? thx

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    1. I use both previous day and current day's profiles. Some parts of yesterday's profile may be used up but others not.

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  2. Hello El,
    How many TPOs do you require on a new leg/distribution before you will split a profile in 2 parts ? cheers.

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    Replies
    1. Its nothing to do with the number of TPOs. I split when there's a new distribution. Plenty of examples in the blog.

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