Thursday 19 August 2010

What is the expected Market Partcipants Behaviour?

The key to L2ST's profitable Trading Approach is to:

- Stay Adaptive and
- Understand the EXPECTED Market Participants Behaviours by identifying Price Value Relationships Intra-Day.

If you think of the Market as an auction its is really quite simple:

Buyers will look to Buy Below Value
Sellers will look to Sell Above Value

The trick is to identify Value and be aware of where Price is in reference to Value at ALL times!

This is the case most of the time from the Days Value perspective, and we see this day in day out. Market Participants respond to prices above and below The previous day\s value and today's Developing Value. When this is backed up by a High probability Set-ups such as a Volume Break Down Divergence and confirmation off the Market Delta Footprint you just have to go with those trades!

When trading these set-ups it is easy to also define your Risk to Reward before you pull the trigger, by simply using the Previous Days Value area reference levels as pre-defined profit targets, or simply using the Developing Value Areas Levels, such as the Developing Value Area Low and High and the POC (Point Of Control). In the L2ST live Trading Room we have actually found that the VWAP indicator provides us with even more reliable Developing Value Area levels than the the Tradition Market Profile alone. The traditional approach to trading market profile mainly involves using the previous days levels, however with the L2ST Art Of Adaptive Trading Method we use the Developing Value Areas, mostly after the 1st Hour of trade. We have a unique approach to Trading with Market Profile and the Market Delta Software, which is ahead of most of our competition! Learn the new way to trade with Market Profile and Market Delta in our Live Trading Room at
http://www.l2st.co.uk/livetrading/livetrading.html

No comments:

Post a Comment