Click Here to configure this menu.


Advanced Market Perception

Strategies: For big trend moves

In Monday’s post, we advised using  strategies that take advantage of range movements rather than going for big trend moves. While market profile is perfectly suited for these types of markets, most range indicators will do fine in conjunction with the auction process.

Looking at the attached chart, we see that the initial balance range trade worked quite well with price coming just shy of final target with a trailer stop-out in the profit zone.  Even the Trading 101 approach using 5 min. stochastics and MACD entry points (noted by entry arrows) would have resulted in a profitable and stress free day.  

Remember, these strategies are not the holy grail and the market will let you know quickly when a quiet inside day turns into a big trend day. That, of course, is why we have stops. Never overlook these dull market days since they can be highly rewarding if one just keeps it simple. All we are trying  to do is take advantage of the ebb and flow of a slow choppy and albeit boring market.

If you want more information on market profile strategies and how to take advantage of these market opportunities, feel free to contact us anytime.

Aug 5 price movement