Market Profile Examples

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IB EXT FADE example in Crude oil

One of the anchor playbook set-ups we encourage developing traders to look for is called an IB EXT FADE (initial balance extension fade). This is means we wait for the first hour of trading to complete, see extension of range beyond that range of that first hour and then take the counter position to the extension to target a profile reference back inside the first hour's range. Below is an…

Mapping human behavior in the auction

Profiling is the core of our trading approach and analysis because it captures how all market participants (institutions, hedge funds, retails, etc) interacted with various prices. While no market cycle is the same, there are consistent behaviors in auctions that are millennia old and are not going away. This means we can see how these behaviors played out in the past to help inform our decisions in the future. At…

[Q&A]: Nasdaq & Crude open gaps

Part of our weekly Q&A series. We began the discussion with a look at some opening gaps in Crude and Nasdaq futures. Then we opened the floor to additional questions. Additional questions asked and answered: When using profile, in general, does it say anything about the direction or just about levels? What are your trade management these days? how do you assess the context? How are you doing to deal…

[Q&A]: Glossary of terms, Nasdaq & Crude open fades

Part of our weekly Q&A series. We began the discussion with a look at some opening "fade" or "responsive" trades in Crude and Nasdaq futures. We also reviewed a trade in Wheat that we took earlier in the week. Then we opened the floor to additional questions. Additional questions asked and answered: So being new to your style of trading, do you have any resource that defines the acronyms that…

[Q&A]: Morning Routine, Option Trades, & Session Volume v. Orderflow Delta

Part of our weekly Q&A series. We began the discussion with a look at our morning routine, how to build option trades with the profile, and what the difference is between session volume and orderflow delta. Then we opened the floor to additional questions. Additional questions asked and answered: Why do you like NQ over ES? Will the market fill the gap? What's the average volume in Crude? Do you…

[Q&A]: Joining the breakout

Part of our weekly Q&A series. Breakout trades! Breakout trades occur when we take a trade in the direction of range extension. There is a great example of this exhibited in this discussion. We began the discussion with a look at a breakout trade in Nasdaq futures. Then we opened the floor to questions. Additional questions asked and answered: What are you looking for taking a trade? I mean what…

[Q&A]: Using triggers to reduce trade entry risk

Part of our weekly Q&A series. Triggers. Triggers are short time frame price action arrangement patterns we use to help us minimize entry risk when we enter a trade. We began the discussion with a look at how we use triggers when we come into an area of interest based on the profile. Then we opened the floor to questions. Additional questions asked and answered: Do you consider any pit…

[Q&A]: Using the profile to help you find patience in the trade

Part of our weekly Q&A series. Patience. Patience in trading is an edge. The challenge is in knowing what you are being patient for. We began the discussion with a look at how we use the profile to help us be patient traders. Then we opened the floor to questions. Additional questions asked and answered: How do you measure gaps? What is the difference between means reversal vs pull-back trades?…

[Q&A]: What is auction context and how can it help you?

Part of our weekly Q&A series. We began the discussion with a look at how to use the profile to determine the context of the auction. Then we opened the floor to questions. Additional questions asked and answered: What statistics does IRT provide for Profile, say for the ES? I know you have provided a 17% number for 1.5XIB for example. What timeframes context (5 days, 20 days or 6…

[Q&A]: What is a bias and how can it help your decision making?

Part of our weekly Q&A series. We began the discussion with a look at how to use the profile to set a bias for the coming session. Then we opened the floor to questions. Can you look at crude for today? Where do you start the ER? Where is the MC-VPOC in that current balance are on CL? What is the best way to trade a trend day? Can you…

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Market Profile Examples | TRADE WITH PROFILE