Carpe diem: Intraday tactics for Dax and Dow

DAX Opening Range (OR):
10.315/10.370
Middle 50% @ 343

On request of several traders in this group I will post some explaination again in a few minutes about my TPO/Market Profile charts (as I did 1.5 week ago).
Now a little reviced and more detailed.

The charts I show in this post as examples are some days back charts and not valid for today's trading.

There is a link with basic Market profile items/explainations.
Please read this document a few times to get better understanding of MP.
This document is sent to me by an other trader here and not written by me.

Study MP carefully an make your own trading plan instead of following traders (including me)

On this link you will see a file where a brief explaination is given about Market Profile.
Download the file and read this first.
Posted to me by an other trader.
http://www.fxcodebase.com/code/downl...le.php?id=4882

Market Profile is not predicting anything. Not ONE indicator can do that. So can't I!
Market Profile shows you many hidden levels you can not see on your regular charts.
So use it to detect levels such as: Supp/Res levels/POC levels/Daily and Weekly Highs and Lows/Volume peaks/and light traded zones (single TPO blocks)

Some explanations about my Market Profile charts/TPO charts.

On the Daily TPO chart picture (only) you see a vertical line colored in red/yellow/and greens (on the left side of the white Daily TPO blocks)
The little yellow part of that line is the first 2 minutes traded range, started from the cash open.
The red and yellow vertical stripes (together) are the first 60 minutes traded range, started from the cash open.
Tt's called the Opening Range or OR. Also (better) called the Initial Balance or IB.

The different green colors on the vertical line are the extensions of the OR. (fixed levels after 60 minutes from cash open)
They are 50%/100%/200% extension levels of the Opening Range.

The pink horizontal lines are the POC lines of the day. (Price Of Control where the market is traded the most/level where the market is in balance)
The POC line/level is NOT the place where the highest Volume is/was.
POC level is the price level at which trading spent the most time at. Equilibrium
The POC line will change to an other price level during the day. Depends where the price is traded the most time.
The POC line of the previous day is fixed at the end of that day's cash close. They do not change anymore.
The today POC line is developing until the cash close.

TPO's (white blocks)
Each vertical leg of white blocks is build in a time period of 30 minute period.
See this vertical stripe as a 30 minute candles.

So the TPO chart is like a compressed 30 minute chart

Easy to see on a Daily TPO chart:
Cash open of several days
Cash close of several days
Daily POC (and previous days POC's)
H/L of several days
Volume peaks
Opening Range (OR)
Extensions calculated from the Opening Range
GAPS between days
GAPS to close
GAPS during the day due to fast price movement up od down (you will see a line of single TPO white blocks)
and more

One can show the TPO chart in 2 ways.

Compressed or unsplit and you will see very clear @ which level the price is traded the most. POC zone

Not compressed or unsplit. You see the 30 Minute TPO block legs as candles on a 30 minute chart.


In the same way I look @ a WEEKLY TPO chart.

On the Weekly (and Monthly) TPO chart I look/search for light traded area's/zones.
Also called Pockets/Gaps which have to be filled.
(you will see a vertical line of single white TPO blocks)

See the screenshot of the Weekly TPO charts of ES and YM (S&P and DOW)
You see single white TPO blocks (called: Pockets/Gaps) which zones were light volume traded (due to a fast move up or down)
and which area's still have to be filled/traded. (in theory)
See these single TPO blocks area's as possible targets when the price is heading in the direction of such a Gap or Pocket.

You won't detect these single TPO block zones on your regular charts!

In the same way I look @ (a little less) to the MONTHLY TPO chart. (more long term trading)

See the screenshot of the Monthly DAX/ES/YM charts.
At that time the DAX price was just below the 500 and was looking for the 400/350 to fill the GAP/Pocket (single white TPO blocks) and test the Monthly Highs of August and July.

Some explainations:
YM = Dow Jones
ES = S&P 500
CL = Crude Light Oil

Y = Yesterday
BE = Break Even
FLAT BE = Flat on the entry price (BE)
FLAT BE + 2 = Flat on the entry price + 2 points profit
T1 = Target 1 (one or more contracts covered on that price)
T2 = Target 2 (one or more contracts covered on that price)
Trailer = my last contract still running and the Stoploss (SL) trails/follows the price with an appropriate distance.
SL = Stoploss
TPO = Time Price Opportunity.
TPO blocks = are white blocks on the TPO chart. Each vertical leg of TPO blocks is build in a time period of 30 minutes.
See each vertical block leg shows a price range as a 30 Minute bar/candle.

POC = Price Of Control or Equilibrium. On that price zone the market is in balance/most trade price zone.
Y POC = Yesterday POC. Fixed level. Not moving anymore.
Dev. Weekly POC = the new developing POC of the current week. Moving/developing all week.
Heading to the end of the week the Developing Weekly POC becomes a fixed level and becomes more important. Not moving anymore.
Last Week POC = the POC of the previous Week. Fixed level. Not moving anymore. Heavy support/resistance level.

OR = Opening Range. Also called Initial Balance.
First 60 minutes High & Low from cash (RTH) open.

Thank you dutchy

Thank you

Do you have experience with the value area ? Have you ever watched it ?

Yes I do. I will add that later to the explaination above.

DAX Long again on the pull back.
Stil in the Opening Range or also called Initial Balance, but above the 50% middle of it.

T1 +11 x 1 lot (E55,00)
1 lot to go. SL BE
FLAT last lot +1 point (for the broker)

Think long today, but be careful of the US markets. They are high and could pull back and drag the DAX down again

i am personally Short arround that levels looking for the GAP close. but i am with you that long looks good relating opening range and needed retrace levels. just a stomach feeling that short will play out but i ate horrible that weekend might be wrong.

YM last lot +70 points locked in.
FLAT last lot YM (DOW) +71 points (Overnight trade started Y before the close) $355,00


ES +7 points locked in last lot.
FLAT ES (S&P) + 7 points (Overnight trade started Y before the close) $350,00

@Dutchy, thanks for the explanation.

Can you, please, explain again where you see the volume peaks on your chart?

Thank you kind sir !

Is there a readup for the inputs / colours representation for this indicator?

SHORT DOW @ 18.135 (Futures)
T1 +11 points
1 lot to go.
FLAT last lot BE

Sorry I couldn't find anything (I just use the POC and value area lines)

Cool, thanks again

ES scalp long
T1 +1 point ($50,00)
FLAT 2nd lot +2 points ($100,00)

ES and YM in middle of old singes zone above and Friday High below.

ES covered the upper single TPO blocks zone
YM still busy trying to do the same

DAX remains inside its OR and below its last Weekly POC level @380 (so far)

I am still holding my long position

Scalp Short US markets.
ES @ 2144.75
T1 +1 point 1 lot
1 lot to go
Flat 2nd lot +1 point

ES on top of Thursday's High. Need to get inside the Thursday trading range.


YM @ 18.151
T1 +11 points
1 lot to gho
SL BE

Could pop again here.
YM (DOW) still has a mission to do to the upside.



(Future prices)

ES (S&P) Short again @ 2144.00
T1 +1 point x 1 lot
T2 +2 points x 1 lot.
1 lot to go
FLAT ES +2 points Total $250,00

YM (DOW) still short
+21 locked in last lot. Trailing
FLAT +21 points Total $160,00

2 Good moves only in the DAX today so far.

One started Friday late before the close. DAX opened higher today due to US pop overnight.
Second just after DAX cash opened.
Rest is rubbish.

ES Long scalp @ 2140.75
1 lot only
FLAT +1 point $50,00

Price went down to test the OR of the first 2 minutes from the cash open.