Market Profile

[shatztrader]

Hi
What`s your thinking of Market Profile application in trading bonds? Anyone had experience? tx

 

[Rhody Trader]

It can be quite handy. I first learned MP in bond market terms.

 

[CookinFlatSix]

MP works better with Fixed income than equity futures IMHO

 

[Rhody Trader]

MP works better with Fixed income than equity futures IMHO

I'm not inclined to agree, but we may have different ideas of what "better" means.

 

[shatztrader]

MP Bonds

How does it help in particular? I mean how`s better than chart?

 

[Rhody Trader]

How does it help in particular? I mean how`s better than chart?

MP is a chart. It's a different presentation of the data, but it's still a chart.

From the perspective of how I use it, MP gives me a stronger idea of where price is likely to be drawn (something a lot of traders don't really focus on) as well as where support and/or resistance is likely to develop. In all cases, MP is good for knowing the key areas rather than specific points. S/R is almost never as precise as some folks seem to expect it to be.

 

[cuotes]

I'm currently using a kind of MarketProfile approach for euroBund and Corn futures.

Two very different markets, and I find it pretty useful in both of them.

Let me suggest this reads:

Steidlmayer on Markets: Trading with Market Profile
Mind over Markets: Power Trading With Market Generated Information
TraderFeed. Market Profile: A Best Practice in Trading, Brett Steenbarger

 

[ATX]

MP works better with Fixed income than equity futures IMHO

I agree with that too. Personally for me, i find market profile most useful in the fixed income markets, especially the bund.

I know there are people out there who put mp to good use in the likes of the emini's, but for markets like that i prefer other methods.

That's just me.

 

[cuotes]

Nevertheless, i find that eurobund futures (or bobl as well) don't follow the book (level2) as accurately as other markets.

I mean, sometimes this fixed income derivatives markets seems to move regardless of he book?

Maybe is only my perception?

 

[ATX]

i wouldn't worry about the book too much the bund now days.

 

[Jan Phrixos]

It will help you decide the best way to approach your niche and determine your sales costs without hiccups.