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Advanced Market Perception

Q.O.D AUG 9th

I found your commentary in the trading room regarding market internals very interesting. Would you say that Market Profile gives you the ‘where’ and market internals gives you the ‘when’ on a trade?

We receive many suggestions for our QOD’s but the best ones are those that require us to take a step back and ponder the answer. This is certainly the case here and your synopsis is a good one. Market profile certainly gives you the perspective of ‘where’ to enter since MP is a great indicator of getting good value on a particular trade. Market profile also tells you the ‘which’ in respect of direction. It acts as a filter to eliminate ½ of the choice of going long or short. In other words, if price is providing value to going long using a market profile ranges, then doing the opposite clearly is a trade that allows for little edge and increased risk.

Regarding the second part of your question, market internals acts as an aid in the ‘when’ or more specifically, fine-tunes the entry point on a trade. Internals such as moving averages, Keltner bands and other trigger related indicators can communicate specific entry points. Of course, using the $TICK chart is one of the best barometers of ‘where’ and acts as key dashboard indicator telling us the where to capture the best edge in regards to entry and exit.