EdgePlayer Trading: Examples of using Market Profile Analysis to trade various markets

This example shows how to use the Value Area Bands indicator to trade buy divergence and sell divergence using NYSE Ticks, cumulative volume delta (up vol - down vol) and regular volume. The ellipses show where the divergences occur and where entries may be made. Note that the first set of ellipses show a trade entry that is below the Developing Value Area Low (DVAL) and that the second set shows an entry that is above the Developing Point Of Control (DPOC).

The following examples show how Market Profile Analysis can be used to trade various markets. All examples use Pacific Standard Time (PST). If you do not find the example you are looking for, please feel free to request it: EdgePlayer@EdgePlayerTrading.com

This example shows how to trade balance areas using a stochastics oscillator and Linda Rashke's LBR_310 oscillator. Starting on 9/24/09 price formed a multi-day b-shaped profile. Not uncommonly, price tested above and below the balance areas several times. The ellipses at the top and bottom of the balance areas show where trade entries could have been taken. However, the oscillators, as shown by the ellipses, gave better signals for long entries which ultimately turned out to be the best direction. At the open on 9/28 , it would have been reasonable to take a long, betting that the higher low made near the close of 9/25 signaled that down side testing was over.

This example shows how to combine Market Profile S/R with volume delta analysis and NYSE Ticks. The Market Proifle S/R depicted are as follows: volume DPOC (solid yellow line) , volume DVAL (solid green line), volume VAH (dashed green line) , volume POC (dashed yellow line). Though not Market Profile S/R, the 24 hour VWAP (blue and red line ) is also depicted. Note how that by 11:53 PST all three indicators are confirming the resistance at the 1095-1096 area.

This example shows how the MP indicators can be set up to trade FX. The first thumbnail shows custom sessions for the Asia, Europe and U.S. sessions. Note that the U. S. sessions also shows the VA from the Europe Session. The second thumbnail shows a 24 chart with VAs from all three sessions.

This example shows how MP can be used to trade stocks. The first thumbnail shows where AAPLs price stopped on 5/6/2010 (the day the Dow plummeted a thousand points): it stopped at the 12-month POC!. The second thumbnail shows how to use NYSE Ticks and the VAH, VAL, POC to trade AAPL on a rotational (range bound) day.

This example shows an MP lettered profile inserted into an ES chart that splits the Globex market into a day session and an overnight session. With this chart it is easy to see whether the overnight inventory is long or short and whether a "squeeze" opportunity exists for day session traders.