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Trading Methods For Market
Profile
(Category 1)
(Category 2)
right
click to save as word doc I believe document is from BobR, a prolific poster and
successful trader. It was passed to me from a trading buddy who trades Market
Profile
Only trade in the direction of the trend (Trend is determined by a rising or falling Point Of Control) terms used: VAL = Value Area Low VAH = Value Area High LOD = Low of Day POC = Point of Control HOD = High of Day DBY= Day before Yesterday IB = Initial Balance
Trading Methods For Market
Profile
Trade
setup #1a:
In a down trending market, when the current session opens below the
VAL
enter a short trade at the
VAL and again at the POC. Place a protective stop for both
trades 1.5 points above the
VAH.
Trade
setup #1b:
In an up trending market, when the current session opens above the
VAH
enter a long trade at the
VAH
and again at the
POC. Place a protective stop for both trades 1.5 points
below the
VAL
Trade
setup #2a:
In a down trending market, when the current session opens within the VA
and at
least 2 points below the
VAH
enter a short trade at the
VAH. Place a stop 1.5 points above the DBY POC.
Trade
setup #2b:
In an up trending market, when the current session opens within the VA and at
least 2 points above the
VAL
enter a long trade at the
VAL
placing a stop 1.5 points below the DBY POC. Trade setup #3a: In a down trending market, when the current session opens above the UVA and below the DBY VAL enter a short trade at the DBY VAL and again at the DBY VAH. Place a stop for both trades 1.5 points above the DBY VAH. If stopped out on this setup and price remains above the stop level, change directional bias for all category 2 trade setups for the remainder of the day. Trade setup #3b: In an up trending market, when the current session opens below VAL and above the DBY VAH enter a long trade at the DBY VAH and again at the DBY VAH. Place a stop for both trades 1.5 points below the DBY VAL. If stopped out on this setup and price remains below the stop level, change directional bias for all category 2 trade setups for the remainder of the day. Trade setup #4a: In a down trending market, when the current session opens above the DBY VAL and below the DBY POC enter a short trade at the DBY POC and again at the DBY VAH placing a stop 1.5 points above the DBY HOD. If stopped out on this setup and price remains above the stop level, change directional bias for all category 2 trade setups for the remainder of the day. Trade setup #4b: In an up trending market, when the current session opens below the DBY VAH and above the DBY POC enter a long trade at the DBY POC and again at the DBY VAL. Place a stop 1.5 points below the DBY= LOD. If stopped out on this setup and price remains below the stop level, change directional bias for all category 2 trade setups for the remainder of the day. Profit targets for all trades should be in consideration of the risk of each respective trade and should be placed in consideration of the previous days POC, VAL or VAH
Trading
Methods For Market Profile terms used: DVAH = current session Value Area High DVAL = current session Value Area Low DPOC = current session POC
Category 2
trades are based off the current sessions DVAL, DVAH and DPOC with profit targets of
approximately 2 points (they will generally setup after steps 1 and 2 have
occurred in the market profile’s development) When a Category 2 trade’s entrance level matches up with a VAH It is referred to as a Category 2+ trade (category 2+ trades are generally good for 3 or more points)
Minus development is very helpful in showing
the direction of the market |
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miracles,
they are everywhere.............. 
