Where and When

Peggy Lee had a song, "Where or When". For me, trading is "where" and "when". The two pics below each give at least three or four great trades with a couple of hours: the ES and the ZB, both great markets. The MP provides the "where". I mark up my Profile before the RTH market opens and I know in advance where I will do biz. I then use order flow to provide the"when" component of the equation.

 

 Two completely different markets but similar patterns and similar opportunities. Market Profile is probably the greatest tool devised. It is perfect of telling me the "where". I can use it for the "when" out of the box but by using order flow charts, Volume Imbalance charts as marketDelta calls them, I can get an even higher win rate and more profit.

I'm in Dubai again this week enjoying the sun. Australia is still a little too far for a week's break but hopefully the planes are getting faster.

Its Still All About the Context

Understanding what "they" are doing is not so hard when you read the order flow in the context. That's what the book is all about.

Progress on the book is good although I had some time off for a minor medical procedure. Life is like that, I've learned. Anyway, Part 1 is pretty well nailed and am waiting to finish the current training I'm giving so I can lock down Part 2. Part 1 is dependent on Part 2 so that's where I am.

The pic below show the split DAX Profile from yesterday - split before the market opened today. The support and resistance worked perfectly and gave me what I needed to read the oirder flow in context.

Lots of Trades are this Clear!`

I'm in the process of doing a training that I'm recording to use in the new book. We're at the point of creating a trading plan. My trading plan consists of a number of trading pictures, each of which has its own "rules". I've written "rules" in quotes as these rules are not mechanical rules but rules that allow us to recognise specific trade opportunities. Each picture has certain order flow and context requirements and we learn to recognise and react to these opportunities instantly. No umming and ahhing required. Its a picture that is easily recognizable.

The pic below is this mornings DAX. As you can see, the distance between the VAH and the POC was worth about 750 euros per contract. We have 4 trades in that space taking out much more than 750 euros per contract. And we haven't even gone down to the VAL....yet.

Trading orderflow in this Market Profile context allows us to make very high win rate trades with low risk. This context allows us to see the potential profit and risk per trade very clearly before we enter. In this way it is easy to see whether a trade should be taken. A properly constructed trading plan is a critical part of the process to CP.