Screen Setup Video!

Hey Guys,



This video just goes over my screen setup. All 3 of them. Just to review, I am using Market Delta with DTN IQ FEED for charts, and global futures for my brokerage and for my DOM data feed.


Thanks,


Julian:)

New Video Finally!

Hey Guys!

It has been a week since I have posted a video, I was at a course for the past week and a day. Nice few trades, I have decided to take a step back from too many trades and only make 1-3 a day, as I am looking more into the auction market principles and less in reading orderflow. When I trade the morning (my school will allow me starting the New Year)it will be benificial as longer bigger trades are possible.

Thanks,


Julian :)

Exactly What is “Market Profile™”?

Hey Everyone!

Here is an article taken from Tom Alexander's Website. Great Read! It explains what exactly is market profile and auction market principles.

Market Profile™ is a copyright of the CBOT of a specific charting format. It was originally designed as a graphing format that would highlight on a trading screen the development of prices in the day timeframe that reflected how a market would typically develop on the floor of the trading exchanges. It was the original brain-child of a CBOT floor trader, Peter Steidlmayer.

In the MP charting format a trading day is divided into thirty-minute time segments. Each thirty-minute period is assigned a letter to identify a specific thirty-minute period. Each time a market trades at a price within a thirty minute period the letter for that time period will print on the chart. However, once a letter is printed at a specific price there will be only one print within that timeframe regardless of how often price rotates back and forth across that specific price. As the market develops and new thirty-minute periods begin the process begins again but with a different letter for that time period. This is a charting protocol that was designed to highlight activity on the horizontal scale of the chart. Each letter, (called a “TPO”) was designed to act as a proxy for volume. It is important to note that when this protocol was first introduced to the public real-time, actual volume was not available.

Over several half-hour rotations TPOs will establish a vertical range on the chart and the accumulation of activity at individual prices as the day develops shows how much trade activity is occurring at certain prices relative to other prices, based on the TPO count at that price. The first two half-hour periods (commonly referred to as “rotations’) are identified as comprising the “Initial Balance Period”. The IBP, simply put, is the range of the first hour of trading. The “Value Area” of a profile graph is the area containing 70% of the trading activity in the trading day.




The original trading application of the MP concept centered around what occurred if prices moved outside the range of the first hour of trading and the “Day Type” of the previous trading day. There were originally five “Day Types” described by Steidlmayer. Two or three more were subsequently added to the mix as an effort was made to refine this initial concept about what Market Profile™ was, and more importantly from a trader’s perspective, how to trade it. This was a predictive approach to trading the profile graph. The thought was that by reading how much or how little activity occurred at different areas in the vertical range of a profile one could ascribe intent and/or infer who was doing what and how much. The “who” part of the guessing game was an attempt to know if volume at certain areas was from a commercial trader(s) doing mostly hedging or an institutional trader(s) who had more of a directional, trend following bias, or one of two categories into which were lumped floor traders. At the time there were four trader classes assigned by the CFTC (Commodity Futures Trading Commission). The exchanges were required to track where the trade activity of each category was taking place. This information was not available until the next trading day. Initially both the CME and the CBOT reported the data available to anyone that requested it, then the CME stopped making it available to the public and only CME members had access to the data. The CBOT continued to make its data available to the public, thanks in large part by the lobbying of Steidlmayer who has always been a tireless proponent of transparency and the dissemination of trade data at the exchanges. This is digressing into the minutiae of how the concepts evolved, but those were very important concepts in early MP principles and how it was taught. They were also over time proven to be wrong, which explains why so many that were attracted to the MP later gave it up as being in the category of “looks great but no practical use”. Interestingly and important to note, a lot of the ideas that have over time been proven wrong either because the underlying premise was invalid or because the markets have changed so much in the past thirty years are still believed in many quarters to be the “gospel” of MP.


The Market Profile™ graph is a tool to be used as a means to an end. It is an artifact of a process; it is a visual graph of how an auction market develops. It is the understanding of auction market principles where the real value lies.

Be sure to read this 2 or 3 times to get a thorough understanding!


Julian

Unemployment Friday Key Levels

Hey Guys!

It has been a long time since I have posted so I am going to give out a few levels for unemployment friday, tomorrow.

Overall the major selloff we had in the last 45 minutes gave the direction possibly tomorrow. The last 45 minutes is the seperated M and N period circled in red.

The market auctioned to new year highs in the first 30 minutes (seperated A period) before creating a failed auction, geting accepted in the B-L periods, and testing the other extreme, 1097.50.

The important levels are listed on the picture, make sure to watch out for the minus development, because the are a lot of sellers in those areas.

Overall, 100000 contracts were sold today, liquidating all the longs in the previous 2 days.

Thanks,



Julian

Classic FED Failed Auction!

Hey Everyone,

Nice trading day today with the FED announcement!

Today I'll talk about failed auctions. A failed auction is when a market breaks an important level, fails to find buyers or sellers to continue the move, and drops it back into the POC. If that POC is broken, there will usually be a move to the oposite extreme.

Why does a failed auction occur? Well what happens is, when highs or lows are broken, and there is nothing to continue the move, the only thing that can happen is let the market reverse.

3 things intiate that lack of continuation and reversal.

1.Stops getting runned.
2.New longs or shorts coming in on the beginning of the move.
3.Wrong side (if the failed auction broke highs then fell down, those would be longs on the wrong side) covering positions.

This picture shows and example of a failed auction (today).


Thanks,


Julian

Short Post

Couldn't make a video today but I have the trades on paper.

I won't be posting very imformative posts until I have the website up and running with all the information up and running.

Thanks for your patience,


Julian

Nice Trades! Chatroom Trading Courses Are Being Made Now!!

Hey Everyone,


Nice Trades today, quick in and out trades with only 2 ticks of heat!


Thanks,



Julian

Nice Trades, Chatroom will be up in next 2-5 months!

Hey Everyone,


Nice trades today, very volatile. The chatroom will be up and running in the next 2-5 months!


Thanks,


Julian

Yesterday's Trades!!

Hey Everyone,


Nice few trades, open in a key reference area, and just started exploding upwards, after the 10:00 report it top out and I started shorting the market down to lows.

Thanks,


Julian

Essential Reading

Excellent Read!!



Julian

Yesterday's Trades!!!

Hey Everyone,


Nice $300 day trading the morning. Gap open pullback then run straight through highs.


Thanks,



Julian

Tips, Software, Strategies!! PART 1

Hey everyone,


I'm going to start a small seperate blog section for how I trade. Today I am going to begin by explaining the theories I use.


MARKET PROFILE is the most important chart I look at. It shows how long the market spent at a certain time, how much volume was traded at a certain price and shifts from balance to imbalance.


Here is an example of a market profile for 1 day:




1020 A
A
OG
AG
AFG
AEFG
AEFG
ABEFG
ABCEFG
ABCEFG
ABCEFGH
ABCEFGH
ABCEFGHI
ABCDEGHIJN*
1025 ABCDEGHIJN
BCDEHIJKN
BCDEHIJKN
BCDEHIJKLN
BCDEIJKLN
BDEJKLN
DEKL
DEKL
DEKL
DEKL
DKL
DKL
DKL
K
K
K




Each letter is each price traded in the past 30 minutes.
0 Stands for the open and * stands for the close.

For example in the A period priced traded from 1020 to 1025.

Key areas of S&R are high and low volume areas.

EX. Middle of bellcurve is high volume therefore are key reference area, high and low are low volume areas and are obviously a key area too.

To find out more about market profile check out TOM ALEXANDER'S site, and CBOT'S site.


Thanks,



Julian

Nice Trade, Includes Briefing!!

Hey Everyone,


One short off of highs, managed trade very well!!


Thanks,



Julian

Thanksgiving in Canada, Had A Day Off To Trade!!

Hey Everyone,

Nice 500 buck day!


Thanks


Julian

Nice Day For Another Choppy Afternoon, Includes Briefing In Video!!

Hey Everyone,


Profited 112.50 bucks this Friday, Not a bad day!!

Neutral for Monday, trade ideas are in the video, but remember, buy on friday, sell on monday!

Thanks,

Julian

Nice $212.50 In The Bank!!

Hey Everyone,


Sorry, I couldn't post a video yesterday, no trades were made.

Another choppy session but still provided 212.50 bucks!!

Sentiment for tomorrow: Downside, Pullback

Trades; SHORT @ 69'S, 75'S, BREAK OF 60'S
LONG @ 56'S, 52'S

3 Trades And $75 In The Bank!!

Hey Everyone,


Don't have a lot of video footage for these trades but pocketed 75 bucks!

From now on I won't be posting briefing's I am just going to post little articles showing sentiment, and some trade setups, uploading videos takes a few hours causing my computer to slow down during the process.

So here is my "BRIEFING"


Sentiment: Downside

Setups: Short in the 53's and 57's AND BREAK OF 42's
Long only in 38's

Nice 137.50 Day On Extremley LOW VOLATILITY!

Hey Everyone,

2 trades with a 2 point range afternoon, very long trades! Tomorrow I'll be sure to post a lot of educational articles!!!!


Julian

Monday's Briefing

Hey Everyone,


Sorry it took me so long to post this, overall sentiment is neutral as we have been down a lot lately but we are still in a downtrend.

Thanks,


Julian

Nice $1000 Day!!

Hey Everyone,


Traded the morning, I was home from school and had some great oppurtunites.


Thanks



Julian

Friday's Breifing!

Hey Everyone!


Not much to say, anything can happen at the unemployement report.


We will see what Happens!


Thanks,


Julian

5 Scalps A $300 Day!!

Here are the 5 trades I made, all winners. I haven't had a loser since I have filming these video's, so it's definetly helping! But I'll always make sure to Publish EVERY TRADE!

Breifing for Friday I to come!


Thanks,



Julian

Thursday's Breifing

Just think we aren't going to do much until Unemployement Friday.


Thanks,


Julian

Great 4 Trades $500 Day!

Hey Everyone,


The 3 trading videos is above containing all 4 trades.


Great trading day I'll have another educational video in the next post.


Thanks,



Julian

Briefing For Monday!

Hey Everyone!


Here's a quick video showing what I think's going to happen tomorrow, overall conviction to the downside unless the economic reports change anything.

http://www.youtube.com/watch?v=lNJ6ISWIrn0

Also here's an article about minus development which is where a market hardly trades at. For example after 10:00 EST today the market fell from the economic data with hardly any trades occuring between 1064-1060, providing resistance at 1060-1061 at 2:30 EST.

Here's a little article about minus development.




Also here's a little diagram I made about minus developement.

A
ABC
OBCD
ABCDE
ABCDE
ABDE
DEF
DE
DE
----------
E
E
E
E
E
E This area of E'S is called
E minus developement.
E Providing support and
E resistance.
E
E
E
---------
GH
GHIJK
GHIJKL
GHIJKL
GHIJK
GHI
GH
G


Thanks for the support everyone!



Julian

Here Are The 2 Trades!

http://www.youtube.com/watch?v=_oYVN-ftC0Q

http://www.youtube.com/watch?v=8Chi4vPFZIU


The title says it all! Nice $300 on two trades!


Thanks,


Julian

Overview of My Morning Breifing, 2 Trading Videos To Come!

Hey Everyone!


Right Now I'm downloading my 2 trading videos, and I'll just go over my briefing and the actual results.

The market opened ABOVE the previous day's POC (Point Of Control) and as I said, if it breaks previous day highs it should continue. Unfourtunately I was at school so I didn't take the trade to the 1066 profit target, where the market revsersed.

After the drop, the market halted and made lows at 1053 which was where I said there was big support. The market later on just went back and forth in a range, while in the last hour taking a dip, my videos are ALL SHORTS as momentum is down in the last hour.

My next post will have my 2 trades.


Thanks,



Julian Marchese

Tuesday Direction

Here's a video I made this morning regarding what I think the S&P 500 will do today:

http://www.youtube.com/watch?v=-Y9H1BO9J-0


This video explains how if the market breaks highs we might have a nice range extension to the 67's, but if we open well BELOW the POC I think it'll pullback into value then start going down once more.

It all depends on what the 8:30 EST report does.

Feel free to comment!


Thanks



Julian

Comment I wrote to a Follower That I Think May Be Important To Everyone

Hi Everyone,


I just posted an article regarding the auction market profile theory, which is a very important
strategy I use.

I have three trading screens, 8 charts altogether, and only one chart is a standard candlestick chart. The rest are market profile charts, and footprint charts. Footprint charts are charts that breakdown the buy and sell volume of each bar.

A second part of my trading is trade orderflow, so extremes of buying and selling. For example, the video I made today shows selling comming in at a key market profile area thus telling me to short.

All my charts are from Market Delta.

I will try posting a video every day!
My youtube channel is julian062596.

*By the way, right now I am still learning therefore I am trading on a paper account. Not many people can say that to another trader. So the money I make on these videos is not real money. I will be trading real money in the next 2 weeks or so and I will still post my losing trades.



Julian


P.S. Check out Tom Alexanders site at alexandertrading.com I learnt all my market profile theory from him.

Hope that was helpful!

+125 On The Day, 1 Trade! Cool MP Article Too!!

http://www.youtube.com/watch?v=uyWOstKTMv0

Very Cool video I made today, only made 1 trade because it was a trend day and the move already happened in the morning, when I'm at school >:(


Here's a basic overview of market profile, or auction market theory. I use this a lot in my trading.

Market Profile™, a hybrid of the statistical bell curve, is a form of technical analysis that was jointly developed by renowned trader, software developer and author J. Peter Steidlmayer and the Chicago Board of Trade. Over the years this unique tool has helped traders gain unparalleled understanding of markets, as well as find profitable trading opportunities. Simple in concept yet complex in detail, Market Profile™ organizes a number of elements into a rapidly understood graphic form – revealing trading opportunities other methodologies miss.
How does the Market Profile™ develop? The industry standard 30-minute display takes half-hour ranges and assigns consecutive letters of the alphabet to the ranges. The first half-hour range of the profile is assigned a chronological letter and the array of prices encompassed within that half hour range are displayed along the y-axis. As consecutive half hour arrays are added to the display with their corresponding range of prices and assigned letters; repeated prices move one column to the right and price probes expanding to new highs or new lows continue to occupy the left most column of the display. What is uncovered over time is a Market Profile™ display with the belly representing the frequently traded prices and the thinner part(s) of the profile representing areas of decreased frequency of trade.
What does a Market Profile™ look like? A Market Profile™ can take on many appearances. The standard display takes on the look of a normalized bell curve with the preponderance of letters near the middle of the displayed range and less letters or TPOs as you move towards the extremes (see figure 1 below).


Figure 1 (Normal bell curve).

B
BG
ABFG
ABCFG
ABCFGH
OBCFGHI
ABCFGHIMN
ABCFGHIMN
ABCDFGHIMN
ABCDFGHIMN
ABCDEFIMNO
ABCDEFIMNO
ACDEFIJMNO
ACDEFIJLMN
ACDFIJLM
CDFIJLM
CIJKL
CIJKL
IJKL
IJKL
IJKL
IJK
IJK
I
I

Over time as markets have evolved to become more efficient with locals and specialists impacting the market less and less, a hybrid Market Profile™ has evolved. The characteristics of this hybrid are a preponderance of letter’s or TPOs near one of the vertical extremes, and price rejection at the other extreme (see figures 2 and 3 below).


Figure 2 (3:2:1 up)

B
BCD
BCDEF
BCDEFG
BCDFGHI
BCDEFGHI
BCDEHJKLMN
ACBDNEK
GFHJDH
BCDE
BC
A
A
A
A
A
A
A
A
A
A
A
O
A
A


Figure 3 (3:2:1 down)


A
A
A
A
AB
OB
AB
B
B
B
B
B
B
B
B
B
B
B
B
B
BCD
BCDEF
BBCDEFG
BCDEFGHJK
BCDEFGHJKL
BCDFEHI
BCDEG
BCDE
BC
G
G
G


Hope you guys enjoy it!


Thanks Julian

One More Trade I Forgot To Put Audio On!

http://www.youtube.com/watch?v=F5jeg9ZiHWw&feature=channel


Nice $100 trade.


Enjoy!


Julian

Friday Breifing

http://www.youtube.com/watch?v=0CZdbSg5ChI

Copy into browser.


Hey Everybody,


Just an insight on Monday's trading session and going over today's trades.


Thanks,


Julian

2 More Trading Videos!!

http://www.youtube.com/watch?v=W1B0-NhGfzc
http://www.youtube.com/watch?v=pHfN9dBYexQ


Hey Everybody!


Nice 2 trades, netted $175 altogether.

+$1025 on the day!

Check them out!


Thanks,


Julian

First Trading Video!

http://www.youtube.com/watch?v=tcT3w4oxpsw&fmt=18

Nice Trade at AG. Product Close!

+150 on 2 contracts!

Check It Out!


Thanks,


Julian

Still Looking To Fade This Gap

Hey Everybody


Still looks as though fading the gap to go long is a good idea.

Mind you, if it breaks the 1040's it looks like a good short oppurtunity to the 1038's.


Thanks,


Julian

Fade The Gap

Hey Everybody!


Just wanted to point out, we made a nice value area at 1044-1046, so I'm thinking, if we gap up or down significantly tomorrow, fade it to the VAH or VAL.


Thanks,


Julian

IMPORTANT NOTICE!!

In order to view these photos, save picture as and view it in windows photo gallery or any program that will allow you to zoom in!


Thanks,



Julian

Sorry Guys The Last Photo Was A Little Hard To See.

First Trade Of The Blog!!

Hey Everybody,

Nice trade today, pocketed a good 1.75 points. The market was turning up to the VWAP with a lot of buying going through. The market failed to break above and selling was coming in. On the Market Profile, a Good entry came in as it was just before the value area high.

BIG SELLING AT THE CLOSE IN THE PIT, by the way. HINT HINT.

Thanks,

Julian

Welcome!!

Hello everybody!


My name is Julian Marchese and I day trade the S&P 500 emini. I am 13 years old. Here's a link to my article in the Toronto Star: http://www.thestar.com/article/695971

I use 3 major tools for trading:

-Market Delta
-IQ data feed
-TradersAudio

I will begin posting trades from tomorrow and onward.

I trade from 3:00p.m to 4:15 p.m EST, as that is when I get home from school.


Thanks,


Julian Marchese