I am a Market Profile Trader. I use basics of the same to trade major Forex currencies. My analysis involves looking at very basic things like spotting shifts in demand supply, looking for buying selling tails, looking at close within a profile and tracking initiative and responsive activities by Other time frame buyers, sellers and locals. In this thread I will share my analysis on the same.
Thank you all for visiting this thread.
I didn’t get what you mean with market profiles…what are they?
Oh goody. I’d like to see more on MP trading around here. Most don’t even know about it. Looking forward to your analysis.
Market Profile is a charting technique to organize price data along with volume in statistical bell shape curve. Originally this was developed by Steidlmayer and Dalton. Usage of Market profile depends on individual traders. Some use price and some use price and volume. It was an intraday technique developed by Pete Steidlmayer. But it is equally good for medium term as well. Just google about it. There is lot of information on the same.
Mostly I traded Forex with Traditional Technical Analysis techniques. I used Market Profile only for Emini, Stocks. But since few months, I have started applying concepts of MP on Forex as well. Just application of basic principles.
I think to get a hold of what Major forex pairs would do, it is important to keep a track on 10 Year Treasury Yield. As the demand for this rises, dollar will rise. I have done an analysis of 10 year treasury rate. Posting the same.
Key Points:
I will change my opinion if the price falls below 2.3 and below 2. In a strong trending market, the breakout zones are not visited that easily and hence if these levels are revisited, then I will look for further clues from the market. At this stage however, 10 Year Treasury rate appears to be heading towards 3.4.
Forgive me if I am not trading for few years yet! 
Ok now it sounds more clear. Sorry I didn’t know about the term yet. Thanks.
Dollar Index
I have highlighted three rectangles (in green), followed by a thin rectangle (in white). The Green rectangles are consolidation phases in the dollar index where responsive sellers have driven the prices down. In each of these rectangles, the profile structures are very weak. Closing has been on the lower side, range extension is on the downside, there is absence of buying tails and absence of significant buying activity. Now, look at the white rectangles immediately after the green rectangles. Each time responsive sellers have had control over the Dollar Index for 3-4 days, Initiative Buyers have entered the market and driven the price outside of the previous consolidation region. This is significant because buyers here are negating the action of sellers spread over 3-4 days.
Along with the Dollar Index, I am keeping an eye on 10 Year Treasury as that remains the source of Dollar strength. Since Dollar has run up significantly in near term, I will keep hold my opinion over short term till it stays above 80.5 – 81. In case Dollar Index does slip below this level, I will review the chart again. But until then, there is no doubt that at present Buyers remain in control. This would mean EURUSD, GBPUSD going further down/consolidating. I will review their charts respectively.
Thank you for the excellent input. Please keep it going! I’m using MP for eminis and looking forward to use it in FX. Working on Field of Vision right now.
Field of vision is good. Go through the workbook as well along with audio inputs from Dalton. Most of the stuff is there in his book, but he does mention some interesting things which are not in his book.
Do you use MP for day trading?
I looked at EURUSD chart today when the European Session opened.
Key Points
Thank you, I’ll keep that in mind. I don’t use it for day trading, I just don’t know how, but I’d love to learn. If you could point me in the right direction I would appreciate it.
What I do is I just look at the previous day value area and POC as reference points as well as the close in relation to the range and value area, and look for extremes as potential entries.
I use other indicators as well, but for me Market Profile is what makes sense, so hopefully I can get a better understanding of it. Again, thanks for all the input.
When we are Day trading, we are essentially putting Time and Volatility against us. As traders, what we want is to have Time and Volatility on our side. Therefore, I avoid day trading. I use MP concepts for positional trading. I feel that way I can give enough time for my opinion to be proven right.
As far as what you have written for your own method, I see nothing wrong in it. In case you have just started out with market profile, then don’t worry too much. Your understanding and application of the subject will grow with time. Books, DVD’s are just reference points.
In case you are a veteran, kindly excuse me for the post. 
Seasoned rookie at best
Please keep posting, I’m sure a lot of people including myself find this as very valuable information.
Follow up from previous EURUSD chart.
I initiated long positions today at 1.304
The stop for the current long position is fairly wide. Volatility is high at present and it is imperative for us to give enough time to the price to fluctuate before trend extension can happen. If you look at today’s market profile chart, then it is pretty evident that strong positional traders have entered. Such wide profiles indicate switch in OTF traders sentiment. The value area however, is still close to 1.276 – 1.283. It is possible, that price may move towards this one more time. If it does, it will be a good test for responsive buyers and we will certainly get insights into how strong the move can be going ahead. In case price does not gravitate towards this value area, it won’t matter much as long positions have already been initiated. Since it is difficult to map which situation will play out, it is better to keep a wide stop loss and be long.
Till EURUSD remains above 1.274- 2.276 on closing basis, I will continue to remain long. I have initiated 5% – 10% long positions and will add as market moves in favor. In case price dips towards the value area, I will average my buying price.
Hi,
I have a request. When you post, will it be possible to post with price at the right end corner and also with the instrument name in the chart. That way, it helps a lot for newbies like me to refer to what you are saying and also document those images for future reference. Also, the MP indicator, is it free or custom made. Thanks for sharing about MP. Looking forward to learning from you.
Best regards
Ah ah, i love the Market Profile charts and you can see Market Profile Education (free but in french) on my website.
Cool
