Profile Flash Cards: Solo Profile
Classic Trading
Can we trade using profile only?
Image 1. Indecision activated
A fresh start to your trading, while relying on time-tested techniques.
By now we’ve learned that the profile is great for setting up a thesis? Can we use the profile to enter trades as well?
Absolutely!
Leveraging the Market Profile
Recall the study guide from CBOT. No sign-up necessary.
Image 2. Gold in them hills. Daily profiles, Jan 5 - 9
We’ll look at three examples from the previous week. Straightforward visuals that don’t require too much explaining. I’ll even suggest a thesis for each scenario, so we know what we’re doing and why!
Remember, you don’t have to trade every day. Less really is more in this game.
Tuesday, January 6
The day opens (pink ‘A’) at the lower end of the prior day’s value after a decent buying in the overnight session. We could:
a) try our luck with an open-drive / open-reverse (bid the opening candles)
b) short any weakness, observing the profile references of POC and VAH above
Image 3. Monday profile
The first choice would have paid nicely (with the open-reverse the better choice). A useful stop would have been the prior day VAL only three points below. Give yourself a little more margin.
But what if we missed that?
First of all, I noted strong support at the open. So as I was looking at the levels above for a short, I don’t simply discard them and start searching for new references.
After some weakness at an NPOC above, momentum turns in favor of sellers.
Image 4. ES 5m candles
That is clear on the 5m chart in both directions. Again, I don’t blindly enter trades. Referencing the profile for our levels once more:
Image 5. Monday and Tuesday profiles
We slice through the VAH, so I am monitoring the PDPOC from above. We hit it to the tick, and once the 5m stabilizes I enter the trade. This then sailed off for nearly 40 points on a 4 point stop (set just below the D period low).
All that using only the profile, really. Ready for more?