Trading – Market Profile and Market Cycle – Wholesome Experience Live7hisDay

# Trading – Market Profile and Market Cycle

August 20, 2013 Uncategorized avnva

Market Profile.
Uses Volume information across time period to help identify VPOC and S/R. Giving visual indication for possible market reaction when price touches these high probability areas.

Market Cycle.
Market moves a different cycles or frequencies. sometime faster, sometime slower. That’s the fundamental reason why indicators don’t really work over long period of time. A setup will be accurate for a period of time and failed to give similar result one or two months down the road.

Zig-Zag Indicator.
Zig-Zag indicator uses setting for minimal price movement to plot a saw-tooth like line on the chart. the highs and lows will dance around at different frequencies.

Combining the above.
One strategy is to use Zig-Zag indicator to plot the dominant cycle/frequency that the market is currently trading at. Couple with POC from Market Profile. We can make decision to long or short the market.