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<I don't know about Market Profile. I do have a question I can't seem
to get an answer to from other RTs: how does just price work as an
indicator?>
Pete:
If I may, here is how I use price as a leading indicator, it's just a
small example for stocks.
Using a daily bar chart,(O,H,L,C), stock trending up,market trending up,
stock's industry is also trending up. This gives momentum in my favor.
Two days before, the daily price bar had a 1 1/2 pt spread, (H-L), with
600k vol. This indicates the effort & result is good.
Today the daily price bar went to a new high with a 3/4 spread with the
same or larger vol. This indicates supply entered and narrowed the
spread, the result of the price didn't match the effort made, (heavy
volume). This forecast's that tomorrow, supply most likely will
overcome demand & the price will go lower. I'm looking to short that
day.
As I said, this is just a small example of using price,(and vol), as a
leading indicator for short term trading. Different methods are used
for longer periods.
Hope this helps,
Dominick
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