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