Part of our weekly Q&A series. We began the discussion with a look at how to use orderflow along with the profile to gain greater confidence in directional entries. Then we opened the floor to questions. Additional questions asked & answered: Please explain order flow. TY. Hey guys, do you also analyze weekly or even monthly profiles? Are there differences compared to intraday profiles? Imho, Delta can be a two-sided sword. …
Profiling Execution
An auction in “balance” is an auction at rest. The next move is preparing to come and it will initiate from this zone. First, you need to be able to identify these balanced areas and then know what to look for when they begin to break so that you can join the move.
Not all times during the session offer the same opportunity. During different periods of the trading session we look for different types of auction activity. In this example, we are looking for something called, “responsive” activity given how far we are into the session.
Not all prices or activity in the auction are the same. So, to keep from being lulled into every bit of the action, we establish zones of interest. These can serve as targets to exit or areas to look for a counter trend entry. In this video, we show how we used one of these zones to find a high probability intraday trade in Nasdaq futures.
Looking for a quick trade on the open? This is a great set-up to look for on the open in a trading product. This set-up is clearly visible through the use of the profile graphic.
When making trading decisions, we remove some of the randomness of markets by identifying “open types” and “day types” to help give us an expectation of behavior.
When making trading decisions, we remove some of the randomness of markets by identifying zones that we are interested in participating. Then, if the auction comes to us, we are prepared and have a plan in place.
When making trading decisions, we always make them with respect to where we are in the “posture” of the market and that is discerned through knowing and leaning on value across multiple timeframes.
You may have heard us say at some point that there is no such thing as a trading holy grail. What we mean by this is that there are no trading approaches or systems that are 100% effective, allowing you to extract money from the markets at will and without risk (btw, if they did exist, no one would let you know about it). So….if you come across someone promising a …
Profiling Execution | TRADE WITH PROFILE