your strategy. Longer answer: t there are caveats. Often, but not always. Liquidity starts falling off pretty quickly after the opening. . Moreover, it is possible (and useful) to look on several previous profiles at once, looking at how the trend developed across more than one value area. Smaller geographically-bound time windows. This isn't voodoo, all the levels I mention were on the chart by the time yesterday's market closed. Trading volume typically forms a U-shaped curve throughout the day Generally speaking those patterns hold in almost every market. . Sure, but I think you might need a pro membership to get the market profile indicator. I have used this on Oanda just fine for example before switching to futures. Get out if momentum dies down and the session ends on the developing (today's!) point of control side opposite your trade direction.
Get out if price crosses the vwap clearly in the opposite direction. This has been exploited in the futures markets with strategies such as the opening range breakout. The Forex market operates through several widely recognized trading sessions. I am merely listing a few things I pay attention to and how I use market profile to analyze price. At 8:30am it looked like a fairly muted Asian session with price just hovering around the previous day's point of control. While the actual indicator gives you a clear level, I think of it more as a zone. So on Monday, I would look for longs above and shorts below.
We are currently still below today's vwap, so aren't really getting an exit signal from. Some markets are centralised (futures) while others like forex aren't. Above and below the point of control, you can see weaker "peaks".support and resistance. A Six-Part Guide to Market Profile, the most important profile is based on the current session, but the profile built during the previous one is also relevant and should be analyzed by a trader. The edges of the value area form strong support and resistance levels. Not totally sure though. The minor difference of Sunday/Monday open and Friday/Saturday close between different brokers and liquidity providers is small enough to ignore (one or two hours of thin-volume trading). Feel free to use it as inspiration to clearly define your own trading rules.
Apparently, it is still possible to apply Market Profile to modern foreign exchange market. Now unless you are with some rinky-dink broker, it will still be "close enough" to work just fine. Get out if price crosses back through the previous day's point of control. What is Market Profile? Volume and Time of Day, monroe Trout, who famously made billions out of systematic trading, made some interesting observations about the futures markets when asked about the most liquid times of day, in his interview in The New Market Wizard by Jack Schwager. It's a high volume area where price stuck around the longest. Can I use Market Profile for forex/stocks/futures/etc? It is a tool for analyzing the market and getting information, which is not evident from the bare chart. Get out at one of the historic points of control if price gets rejected clearly.
I keep on bringing up market profile and people PM me about it, so I figured I cou ld make a post about how it helps me trade. It s hands down. Exploiting the Volume Profile. Trading systems forex volume tradi ng strategy.