Create Trading Strategies Using Technical Analysis, Volume Profile, and Market ProfileĀ®

we’ll get started now again welcome everyone to today’s webinar create trading strategies using technical analysis volume profile and market profile today’s presenter is Linda [ __ ] excuse me she is president of lbr asset management and lbr group welcome Linda welcome thank you thank you for having me my pleasure my name is Tom Hartl I am CQG director of product training I’ll be your host and moderator today first a couple of housekeeping rules if you have any questions during the webinar please enter them into the Q&A section window at any time during the presentation we’ll have Linda answer the questions at the end of our presentation if you’re viewing the presentation in full-screen mode you can find the QA in the WebEx toolbar at the top of the your screen and the drop-down menu on the far right after having any sound issues please contact the host via the WebEx chat we’ll be recording today’s webinar and will be posted within 48 hours to the events section on news CQG comm all registered attendees will receive an email with a link to the recording now it’s my pleasure to introduce our guest Ms raske has over 30 years experience as a trader as I mentioned today she is president of lbr asset management a CPA and president of lbr group inc which is a CTA she started her CTA I’ll be our group back in 1992 her hedge fund he’ll be our asset management was ranked 17th out of 4,500 funds for the best five-year performance by Barclays hedge she was first introduced to the public in Jack Swagger’s book the new market Wizards and she has authored her own book high probability short term trading strategies over the past three decades Ms raske has presented her research and lectured on trading for nearly a dozen organizations in over 22 different countries welcome Linda and now I’m going to turn the webinar over to you thank you difficult forum check if everybody can hear me okay will form all right Guam yeah you sound great Linda thank you alrighty I thought I would introduce things that perhaps most people are aware of the market profile supplements in the CPG package which also a very nice tool or the volume profile under studies and just show the ways that we can integrate some of these tools that can be applied on linear bar charts with the conceptual frameworks that market profile does and there’s a couple ways that we can use this we all go over and we’re going to start down from the smallest level a single timeframe type of thing up to looking at picture structure so what we’re going to do is we’re going to look first at some very specific volume patterns excuse me market profile patterns which are pretty basic I like to use markup rows as a supplemental type of conceptual thing not my primary decision-making factor but I do find it a value in certain instances so I’ll show you what I do and where I set up certain specific strategy so a specific patterns that we can look for for unique trades it might only occur say once every week or two in a market II everyday analysis how it can be a supplemental tool in helping find support and resistance levels or also confirm what might be considered a supported resistance on the bar charts then next how we can integrate this with momentum indicators and see if we can get some synergies within – I find this need a volume profile work in the market profile is very very good for levels whereas traditional technical indicators such as stay at momentum oscillator or whatever your tool of choice is I’ll use a stochastic suppose to this presentation is going to help do the short term timing so the levels with the timing and then lastly I’ll show you some ways that I love to look at big picture work if I’m looking at say a couple weeks worth of data or a couple months worth of data and how you can compress the market blow files on CQG – still lovely I think it is absolutely the best market profile type of school package out there so hopefully this will give you some ideas to do your own work and you know with that said August – so far it started out relatively slow in equities although there’s plenty of opportunity and metals and currencies and other markets but you know just as it’s slow I always be modest as my research month it’s at the time that I want to brush up for my studies you know reorganize myself clarify exactly what I’m doing it’s a

very easy to get suckered into sloppy markets and over trading and marginal trades so this is a great time to step back and also cab wraps look at some of these things and see if you can incorporate them into your game plan now I know the market profile has been much in vogue in the last couple years and so I’m not going to go into the traditional market profile semantics you know the Google day that no trim day and so forth as I have just three slides here that I’ll just quickly review that to me presents the essence of what I get from it and the first is that concept of value as being defined by how much volume has traded over a certain price or how many times the markets traded at a surprise over n number of bars or look bacteria’s and so we’ll call these value areas but one thing that we’re going to look at on these charts is how cleanly they show up as we all call no volume nose high volume points and ways that we can use this from a strategic standpoint to a mitigate or risk or beat a setup trade because I’m sure all you guys are familiar with this already when you get a move outside of one of these volume nose or what I also like to call equilibrium point you’re either going to trend away from that or if it moves out and it doesn’t get much legs as we say or much volume or impulse then it’s going to gravitate back towards it so we can consider these a little bit of strange attractor so it brights rallies and you don’t see the volume coming it rallies them lighter lighter volume then it’s going to revert back to the mean or these value areas so I know that CPG is going to keep these slides up for you and you can go back and reference these these things afterwards but I really like if you get a chance to Google on auction market theory instead of just market profile they’re basically the same thing that you might find a stuff that you didn’t read yourself as well so we’ll just call them the value areas for now and what’s considered where equilibrium is and then once you start to get these trend moves this one time framing or this vertical movement trending market and it shows up very obviously on market profile chart by the consecutive rising value areas are so forth and I think the whole trick to to trading with a strategy or methodology is is first and foremost categorizing what type of environment you’re in and in terms of the market profile Tom’s it’s either called a bracketing market I know Jim Boulden likes to use that word a lot bracketing market it’s the same thing as a trading range or consolidating market and there it’s very important just to watch the test of the upper and lower under the right engine and engage in more mean reverting type of strategies versus if you are in a trending type of environment and whether you’re a day trader or a longer-term position trader it still matters a lot to get the main idea right so in your analysis I think it’s always extremely helpful to first start with the top-down approach not are we in an uptrend or a downtrend per se but are we in a consolidation period I’m starting to begin a consolidation or are we perhaps just beginning to trend and I think these things will show up very obviously when we look at form of the market profile charts will always use that as your departure point and then we can take it from there so just to sum up the market profile is going to a show the high volume levels and an important levels period whereas the traditional bar charts will be able to be a little bit more sensitive to market timing decisions you know such as if you have a momentum vergence at a key level or perhaps the continuation pattern that’s right to start moving again these are the main things so I thought that I would start off just with two simple concepts here this is a coffee chart and what I found is that the best stuff work on any mark and it really doesn’t matter if it’s IDM or the boss or coffee and since this particular market had several instances of each thing that I wanted to emphasize to you and I will tell you the strategies that

I use um why it’s good for a basic departure point and the first thing that I want to point out here are these little neutral bars is we’ll call them you can see where they’re a very narrow narrow range bar little tiny consolidation bars we can quantify them by saying arrows range of the last seven bars etc etc however I find that the profile has a very distinct and a prominent look to it so it’s very easy for me I trade about 26 markets of course I go trade them all at the same time but it’s very easy for me to see what a market starting to get overbought or oversold but certainly to look for one of these little what I call foul and sparse you see they’re also highlighted here at the bottom with the existing so these little balance bars often not always often lead to some type of range expansion in the case I get link extension that I’ll hold for the next stage followed through because there’s a very strong probability that you will get follow-through from one of these little bars to the next day and most of the most of the trades that I like to look for are where we can expect overnight follow-through although this is a great tool just for day trading as well of course we’ll see some ways that you can do that so the first concept is these little teeny balance bars where everything’s come back into equilibrium very important in a trending market before you start looking for the trend that’s applied for you to see one of these little balance forces we’ll call them and then the second concept that I wanted to present to you and this was a terminology that was put out there by a friend of mine what he calls the holes okay and you can see here with purple area here on the far left of this coffee park what a hole which some people like to call these single print levels as well but they’re big does it gaps down or big as a sharp impulse moves where you get one-way trading so here on this coffee part I would describe right in the middle here or this big purple area right here as being one hole and there’s some of the bus risk reward trades once the market starts trading into this hole and one thing that we have worked over time is just for high high percentage of time that markets go back on slowly fools on all sorts of timeframes if it hasn’t been a slow build up in value along the way so two concepts that we’re just going to focus on for starters is hey the little balance bars leading to the nice moves well you got good one-way trending action and the second concept a short term is just these holes and we’ll look and see how to trade these as well as how they end up spilling out over time so one last example this is from last year just to make my point that you can see at the end of this long long downtrend in natural gas we’ve ended up being whoa okay when we haven’t really incorporated any other volume work yet at this point or oscillated but you can still see here at the bottom was final a totally neutral bar where everything comes into balance and you can also see this red slash on the right hand side of the charts as well as this one slash here these are what you would call your value areas which is simply where 70% of the price action took place so what I also like to see is overlap in the value area so it’s not just a little balance bar it’s even more powerful when you have this two-day price bar overlap and probably my Platts trading strategy for the last year and a half for a short-term one to two to three day trades is where you actually have three bars price overlap and I’ll show you that I mean I’m not disclosing any great secret here it’s simply taking a volatility breakout type of methodology or a range expansion off of whatever opening leading you choose to use I use 7:00 a.m. Central Time and then blowing with the market movement at that time and that’s probably most successful when you have these three bars that I’ll go on to show you but here’s here’s just a great classic impression on this assemble market profile chart looking for an occurrence that might only happen once every one to three weeks these

little a little balance bars you know in an overbought or an oversold type of condition and then the range extension in the opposite direction so you know what they say a picture is worth a thousand words so you’ve got those two main ideas now this concept of filling in the holes or the areas where there was a little bit too fast of a markup or a markdown you know the market needs to come back and test those to say are you sure really really are you sure okay all right yeah we’re sure we really do want to move off in that direction so I’m just going to show you an example of how we can add into this overlay a little bit more comprehensive analysis for pinpointing more exact trade location if you are an intraday but you know timing or day trader or so forth and this is what one of my monitors on vqg looks like all the time I have the market profile on the right hand side and on the left hand side I have a 30-minute chart with just a simple stochastic and a one twenty minute chart now I want you to notice something that I’ve also added into this on the left-hand side of this one twenty minute chart here and I’ll just draw a line here so you can see exactly what I’m talking about okay scuse me Linda you have a annotate tool you want to use to highlight things yes that’s what I just put one would you like it or not we’re not seeing anything on the presentation itself so you want to choose like a pointer tool the arrow or the pin did you see that one more time please it’s a big green line that I drew on the one 20 minute part okay yeah I can see that now thank you okay well what you see I’m pointing to right here is these gray bars will start popping up I put them fit they’re not too obnoxious and this is a tool on CQG that’s called volume profile that’s understudies and it’s going to show you how much volume traded each price for n number of days back and on the 120 minute chart I like to go ten days back and on the 30-minute chart I don’t have it up on the thirty minute up here I usually go three days back and again that’s the importance of the trading over the previous three days that we’ll look at now a couple things I want you to notice on this crude chart you can see right here I had one of my classic three bar breakout formations as a little note of history this was first brought to my attention by a friend who was one of the original Turtles in Richard Dennis’s initial turtle program that he did and Richard Dennis everybody likes to think that he was 100% mechanical trader and nothing to be further from the truth he actually used and adjusted his leverage or a Don points by what he called structural points ok market structure and one of them was what he called the sleeve our breakouts but I have since adopted into my repertoire and a three bar was simply where he had the high of the bar lower than the previous two days high and the low higher than the previous two days flow so you can see here it’s not an inside range days that you essentially have the three bar price overlap in the value area you see that and it shows up really nicely as a coil on the one twenty minute type of time frame that you’re so inclined to use an 80 X or something like that wonderful little breakout pattern that’s good for is what our testing showed once you get the breakout from that three bar you’ve got about a 70% odds that the high of this breakout on bar will be exceeded the next day and you can see we got our objective right here okay so I’m probably telling you more than you can actually take notes on but I know that you’re all like writing this stuff down so that you can go on your research projects for the month of August here so let’s just back up a step here we had our upside breakout on the crude and you can see here with quasi pull if you will these single plant bars this mark up period here and it’s very common for

markets to trade back and fill this hole that’s a concept we’ll revisit I’m in and again through this I know we all like to have that one-way non-stop trading and that’s usually the exception not the rule so there is a lot of black as well here but with my forty minute and my 120 minute the main thing I wanted to point out was how the market acted that big volume node here you seed it this was this was center of this one twenty minute coil we came down we can’t feed it to the stick and at that point we had this little by divergence on the momentum so you can look for among lots of momentum a buy signal in the overall higher time frame uptrend and that also is probably one of the best which rewards Adams looking for by divergences on the shorter time frame into a higher time frame trend and if we’re so easy it’s just simply a matter of compliment and patience and not getting too anxious it’s really a matter of waiting for these things to unfold to this this is a perfect little example of how we could look at previous support or volume areas and they held you have here the level is defined by your volume node the level is defined by the market profile and the timing the technical timing as defined by your oscillators but Allah that’s always something that I find go hand and glove these days well here is another part of the same type of feeling which is silver first of all I do note that you did have these mice allowance bar down here if you will were called a neutral bar on the market profile chart and that’s right here at the bottom you can see we essentially had the breakout to the upside now here’s the trick of the eye you when I get an upside breakout my first objective is you can see the red arrow here on the one twenty minutes my first target is always going to be that previous volume note ok that’s your minimum objective can we get up to that previous volume mode and you can see right here on the forty minute but actually in the process we made new momentum hi now the ways I categorize your momentum highs is both an oscillator high as well as push through these popular channels which are an average to range function so that tells me that there’s been impulse it quantifies the supply-demand imbalance and says that there’s about a 70% chance that this high will be retested and as you know anything better than 55% in the market is a good starting point for our trade conditions so we bought new momentum highs here on the 40 minute now let’s go back and look at our ball you note here if in fact we can start trading on the other side of this volume note then my objective is a penetration of the upper end of this trading range and you can see how we did actually come back and test the breakout point or the top of this range here you can see on the market profile part right there and you can see that we almost tested it to the tick as well as filling in this hole so just to summarize the concept of these holes I don’t get anxious about them and think that the market failed instead you should be getting excited and say this is a very common phenomena for us to blow back and fill this hole if we find support as its previous range here I should actually be getting very excited and think it gets to be the launching pad for a better leg up you cease to get a first glance or ip’s this sauria up here and then we fail then we drop back that previous high he so blurry off and people saw it was a failure test if we look at the profile part it does slow things in a different light that the bar charts for show necessarily at least a daily chart that’s the problem with the daily chart there’s no differentiation between are these little single print areas and the big trading ranges and we hauled about this previous trading range

now obviously on the one twenty minute chart this sure looks like a pretty gold flag formation to me and in addition to that the forty minutes you just have this gorgeous little forty minute by divergence is probably going to show up on any oscillator that you use and that’s my feeling click an oscillator any oscillator I personally prefer to use moving average oscillator as we can but you can see actual consequence the job just fine so now if we go back and we look at where it silver was on this retracement this set for this break out and now it’s holding a broad with high volume area I was around this 2020 area and if we look at today’s close where it’s 21 85 the did this little launching pad here from the structure took us up in two days up to 21 75 while you can see this is a very dynamic type of way of doing our analysis the fact that frights is able to clear these high volume areas of large funding above them and we’ll take it and we’ll look at this on multiple time frames to right now we’re just simply looking at daily bars but what will look for markets where we can put it back into multi week type of moves as well and hopefully it’ll seem pretty intuitive to you I find that what the main obstacle for people is is not understanding the context I know you guys understand this when goodness knows a part is worth a thousand words where people get tripped up is what is the process for which I am going to be doing my end of day analysis or my nightly analysis or my preparation or the next day you don’t want to be trolling randomly through charts in the middle of the trading day he need to have some type of process so I was okay every day at 2 o’clock for every day at 5:00 in the evening I am going to go through my markets and I am going to look for a or P or heat and try and get it down to a very consistent to a feasible process for you to go through your homework in that way what happens is you are just there for the right sort of focal divot playing a game of tennis the main job is just to play in the game and keep that ball in play and then when your opponent is pulled off court or trips or scrambles you are square to put it away so that’s very much my analogy for trading this here they Cocotte are and just to drive home the emphasis again on this gorgeous little neutral bar here but may not have been so intuitive on this one 20 minute time frame you can see right here on the run 20 minute chart will just flap off but it was our three bar breakout type of pattern in fact here you have three bars overlap as well it just didn’t catch fire so here we had our classic I lower than the previous two days high and low higher than the previous two days low on right away well we had our trend blowed up now you know the best classic trendy type of profile is where you don’t stop and loiter in the park you continue to build and build and build so take for example this bar here which you could have seen on you know here we had our previous three bars that is pretty evident fairly early on but you were not getting that constant and cutest welding on the definition of a market profile late Wednesday type of thing that I was hot is where you get consecutive 40 minutes bars well why is a higher than the previous 40 minute high and so forth with Volvo you want to be a continuous markup or marks down on the 40-minute bar charts and if you don’t see that in the first two to three periods of your trading preference then you can pretty much negate the fact that a trend a is unfolding although we have seen instances where they happen in the afternoon session as well but that’s why I do like to keep a 40-minute bar chart up as well and I always find that if I go down to five minute timeframe the 15-minute timeframe or too short of a time frame it’s cute easy to get tripped

up in the noise now this really is a game of get the main idea right if I’m going to charge they’re glued on index futures and socials but I’m hitting them you don’t want to end up seeing the trees are missing before it’s really get the main idea right so this is again once a a classic what launched threaten blue buff we form the value of the higher area and obviously the forty minute and the 120 minute parts are supporting this with a bull fight continuation type of formation now let me just show you one more additional or trick if you’re looking at this 120 minute chart where do you want to put your slop okay we don’t want the market to go all the way back down to this previous high volume note obviously so well I will look at some other example here as to once the market hard and on its and it’s holding where do we want to trail our swaps and always want them initially just below that previous volume No okay that’s it that’s my initial swap level my initial with okay so you know this protocol by delay but one up this was this was around a twenty three seventy five area at the top of this markup here you can see I don’t know why and hope this shows up okay these levels on the left-hand part of this profile part they’re in black and I hope you can see them okay because we’re around our twenty please eleven be here and this move black marked up to the 25 25 in just two more trading days well you can see how powerful it is or when you get these breakout bars that holds and always more lesson hold 100% of the time so we’ll look at some sales breakouts too because that also sort of prudish words as one last caveat I use like 7:00 a.m. Central time reading for once for trending off of that webinar timeframe I don’t want to see the market trading black below that level so that’s my do or glide point as to whether a breakout is going to carry or a breakout is going to fail whatever that 7 a.m. total time reading is after one or two hours has passed in the day so that’s a great little Soaker for me now I just want to expand on some of these concepts and will start integrating a little bit more remember when we talked about the different types of trading ranges bracketing or trending and it should be I’m not saying anything earth-shattering when I say that the trending markets come out of the blackening markets and there’s this law of alternation and of course it’s not always so perfect but when we do get that steady markup I wanted to point out several things to you first off this rally in the evening is that you see here on this chart I want you to notice how each of these Oh file barge is fairly well developed we don’t have those big woosh ups but leave those holes again can be traded back in – you see what I’m talking about instead it’s a very orderly rhythmic marching to the upside and this is what creates the most sustainable trends so very important another interesting thing that it tooks Confirmation all over the place the play with this market is like you can see this little kitty arrow at the top of the profile here and that’s the markets closed and there are extremely high odds in our testing that if you get a close outside of values see while you here is where 70% of the day’s range took place for the day’s trading people when you get a close outside of value there’s very high odds of continuation in the direction of that move of course this is important yes of course Whipple market closes at the top of its bar and you have a big candlestick up all right it’s quite intuitive that all these semantics you know are just different ways of saying the same thing but what I found is that romantic love in many different ways in people mind well if you phrased it what a close outside of value area as 70% chance we’ll follow through to the

upside perhaps might trigger a different way of thinking in your brain instead of sleeping or okay we just closed at the top of our range to the bar does that mean what it’s overbought tomorrow and of course to continue to these good cast back down a little bit but they also had follows through each day so this is that’s one of the strongest type of trending patterns that you can have a steady markup in value area without any of those big impulse the bottom pile moves what we’ve sold okay and we’ll see some cases where we did we hold and what and now I want to show you the opposite extreme and this happens to be the cows walked over town and this is a type of market where I see people make a lot of unforced errors okay meaning marginal trades we can get this in the currencies periods like this we can get this is a lot to learn that clearly was injected in all different types of markets it just so happens but this was the public part I could find at the time giving an example of multiple holes you can see this orange bar here a big hole that means that the price just got too far ahead of its cloth up or down and didn’t really build any platform to build on and like you can see the market goes back down and it still people on these ultimately could be considered little light rejection spikes we tested the previous wave high or the police upper end of the range and it was rejected this does not have any big long-term forecasting implication I want you to understand that too in our modeling because everybody likes to talk about scales okay entail they’re obvious by the bottom of a big downtrend or the top of a Glee Club spread and you have that sharp price rejection fight it only has meaning when you put it into a context but when we tested these tails only happened to be in a trading range or widths narrow statistical significance but really is just noise well we swing from over weeding into certain types of situations and instead just say this is a relatively dead market now to give you an update on what this market did it actually continued in this mode for a full another week all right it captain’s and drug people crazy for a whole nother week until finally just a couple days ago it had a huge gap up on a news event and which was one of the major I think was Ison saying that they were going to go to a different type of kid that didn’t have I was sorting additive to its click roll causing clouds to kind of drop their before they reach the slaughterhouse this is the black about it but you know eventually you had this radical radical move in five trading days which is a huge outlier standard deviation type of move for full points but you can keep but the market continued on shopping like it’s for another week before that move it hold so that’s the importance of always putting your proud and in a context and not reading too much into them in the meantime okay I thought look we’re going to go to a couple walkthrough examples here this was the dollar index and and I wanted to go back to analyzing our volume modes so on the forty minute chart of here amita for Lux you can see our high volume node one side is highlighted by green here and the price is trending down below so we’re moving away from this volume road which is bearish in its implication as long as we keep getting very short term continuation patterns and volume to the downside of course on the bar charts they’re just simply saying but you’re trending lower out of a trading range but I do like the feeling that this volume no gifts and up here on this one twenty minute chart of course this is the ten days worth of volume and you can see that we’re just about to flush below this which is the same thing as saying we’re going to test the actual price flow because obviously the volume is going to coincide with water trade in a fight well here we have this big spike

low a negative trending markets trending down at a sort of a neutral typos bar or not pretty little bow spars we had and this up here was a false price rejection in terms of filling out those holes we filled out that hole but we came back down below this volume note so that’s pretty negative it’s not like we had an upside breakout and had to back down just to close that no we actually look down to this volume node and then from well that’s pretty negative that we failed with regards to that so in hindsight obviously this appears to be a bit of a bull trap now just so you know in our modeling these little bull traps and bear traps these false breakouts lead to sharp moves in the opposite direction which should not be a suprise you have a vacuum there so here we are we’re starting down out of this volume node that was all about here you can see all the parts here we had all this volume and we are starting to break lower and push down to the lower end of this well what is our obvious first target but swing low for me these swing lows and swing highs are magnets so this market is going to go down and I’m going to stay short and see how we catch this and one of two things is going to happen so either going to do a quick catch to reject it’s like those cows dudes and come right back up again okay or we are going to see an increase in volume or consolidations down here which means accepting these lower prices and continue lower for that far outcome all we know is that we want to be positioned to the downside we don’t know if we’re just going to do a quick test or we’re going to continue lower but there would be more reason to be so long and and I think we’re good evidence too so you need to be short here and so this is what actually happens here was the bar that we were looking at at that time of the year okay this bar here is where we were looking at by coming to the downside and you can see that we actually did oh I’ll take down that low right there all right well that was a pretty good flush down now petty downtrend here of multiple ways steady pattern of lower value areas or what happens will already gone through a screeching halt both our little balance are you see how important it starts to be at the bottom not only did we have this little balance bar but we also had a gorgeous little momentum divergence no matter what oscillator you were looking at we had a loss of momentum down here well that doesn’t necessarily mean that it’s a boy yet but you would certainly want to be our trailing or stop for closing out short positions or whatever out that’s hard and then once this market turns back up we want the range expansion we want the steady trend up off at 7 a.m. reading you can see where the market quotes right at the top of that value area and what would be the obvious way that we will be watching we want to see can we come back into that prior range what previous swing low not only that if we do where is this gorgeous the amendment to that previous high volume notes so you see how on this rally back up we went right back through that previous high volume note and that committee coupled with the swing highs and swing lows are the three main things that I write down on my trade sheet as objective levels swing high swing low are the most visible part points and you know that’s why I refrain from Fibonacci or again or craters pivots or any of these things I want something that everybody can see because that’s the most dominant market psychology as well as these volume those I just find them incredibly useful and I really did not look at until just two years ago when a friend started doing the condensed profiles on putting them out all the time I’m like you know there’s definitely something to this it definitely makes a lot of good flexural sense but what is the easiest way for me to see this without fumbling with a bunch of charts during the day you know because that’s my one thing that I try not to do is full [ __ ] the

skiing part but pulley was a bit too much when I find that if I just keep this one CQG page app and of course I love the way that that you can link the chart was cooking on the symbols in a little window there so I just simply click on sugar close on gold or coupon the fruit if I want to get my bearings in the middle of the day and it pops up this little page for me and so my eyes have gotten more used to a lot of course you can see here on these parts look at how the volume it also shows back up in this area as well well just fun little tricks and it takes a little bit of getting used to and a feeling comfortable with it and then seeing different case is how they unfold all time and time again not nothing unfold exactly the same way but you still have these same principles at work well let’s look at another interesting example here and this was natural gas lumber we had this upside breakout from a bar here was Arts v bar or you can see this bar right here was lower hide in the two day high and higher loads in the two day law right so I have this pop up on a little plate sheet for the Fort Smith the next day but I’ve got this one way trading type of day and sure enough I don’t know if this was one of the report days or not it usually sort of them or them at – multiple quantities we do that but okay the principles are the same now what happened here we have a cool a great risk reward point and we that suggests that more often than not this hole will be filled out or traded into okay and we had our little bounce bar up here and then we broke down and started to fill the whole book these are great list forward points on often what they’ll look like is a failed flag so I put my initiation place at below of what looks like should be a little gold like you can you see that on the 120 unusual here’s the 40-minute part here is my little flag low so should have been instead of an ABC like a solid a Shinto the downside I find that very often I can put in a small spot below this just with that initial objective of trading into that hole I don’t know for litigate continuation or not sometimes we just go down a little bit but it seems to be a logical place for a lot of people on their spots and for that sure enough what we did we not only for the hole but remember this is a little bit of a warning sign that we actually pushed below these single plants alright so there really shouldn’t have come all the way back down into this area what was that said let’s just see what this market continued to do and here was our big markup and instead we formed another sleeve our balanced area so you see this bar right here I was in the two day high low higher than the two day low and of course let’s split up that last down plant that continued for several consecutive days down and I believe that we went down to here I got you Ivana quite a few handles lower out of this and why that anyway you can look at that to it your sauce beans soybeans what was a recent example and actually I had a different slide in here that I want so I first wanted to show you a short trade that we made and that was like the market August first flowey up right here remember what I said about using these high-volume nodes as risk reward points but we actually shorted the market right here because we had a good area for spot just just abroad this little high-volume node when we only got a shallow push back down he liked to block other nodes and four was about a 12 cent trade for us which really isn’t so meaningful in the beans but we did get a reaction down and of course this mark up here was on a crop report that’s always a wild card he can’t forecast that the markets going to move like that per se but we can note that once it came out above this high-volume node here all right there was a very compelling case but you could have had an initiation point there a by splat because we were able to cleave through this volume node and start coming out to

oxide so that’s pretty powerful on what we did today is we saw a little run 20 minutes flag and we went back up to the retest well I find that for me the market profile of the trading and these markets is very much taking one day at a time I mean other than just being able to forecast the fact that we should have follow-through I I just did so humbled at this point that I really can’t predict more than beyond one or two days what should we do next what should we do next should I be looking for a retracement trade should I be looking to fill that hole that breaches support or resistance or should I be looking for a possible trend type of day not necessarily rude all right foot I added one or two things on the good part here and I simply wanted to show you now incorporating the dailies and you can see here with his bonds we had 1 2 3 higher lows on the oscillator and a little consolidation pattern basically I wanted to show you also what a false price a breakout can look like on white with webbing am reading is so important well as in the slide 7 a.m. is is relatively arbitrary I just use that for this part of the u.s. session you could use a black same thing using the part of the Asian market session in the evening or you could use the exact same thing if you are in the European markets using believe in the European markets trade in US markets using this part of the work session but I just find that this part of these individual runs ok is a excellent reference point it models all the best for for for seeing new trend hold or or fail landfill here I wanted to show you this gorgeous little breakout bar in the bar okay so you can see it here on the profiles a narrow profile but quite our three bar overlap but we’ve been talking about but wasn’t it sleeve our breakout but nonetheless this is still something that can lead to range expansion we had a logical upside test level up here so there’s definitely potential okay swing highs are always potential targets and the structure there wasn’t anything saying that you had lots of momentum in either way this is very neutral type of reading so this is what we look like and look how thick I want you to notice one last point on this 120 minute chart looks like the right hand side as a volume use here way was very important this is something that can see their way into a 40 count and turned away from the bottom board we’re going to fall back down into it let’s see what actually happen here okay we did have our little push ups we applied it did try to break out and remember what I told you when we drop back below that 7:00 a.m. reading you do not want to be long understand we foes all flat or the value area that is negative and it says roll home short while obviously a bullcrap well I put up a book like and that’s why it’s so important that are they sporting in a bar chart you would want to be competitive bard to the upside you don’t want to start seeing whose price bar overlaps here you see that ok that’s not a sign of a trending market and then of course you can get a feeling this is what the downtrend looks like the steady grind of bars lower low case case made there it’s just not having opinions and follow the market now this was interesting here because listening up its pulse is not so interesting it’s the Nasdaq but I want to integrate now and take us out one notch higher show you even higher time frames when as deck as you all know is of course overly waited with Kabul which has been a bit of a driver recently however we didn’t roll is going to break out at the time that we were picking off these charts all I know is what we had to once again there’s three bar breakout pattern here and I what I did it at the time I tripped it off on this slide now you can see here this condensed profile and if you go into your CPG tool box you will see as something that says a profile area alright the exact name of it is profile area that’s under tools if you click on tools and you click on

boner tools and you go down to the very bottom of that will see something that says profile area and I think you can go maximum 12-week black and it pops up a box like this on your daily chart or when you click open it’s going to contain all this data here or you just see and I’m going to show you some really cool really cool tricks with doing this on the big timeframe so right here I had this is where we closed where the red arrow is you see right here on this chart the little little dinky arrow there this is where we thought I said boy you know this is a great risk reward point because well at the lower end of this range which means but we either hold the whole only block and we catch the upper end of the range or we’re going to fail and we’re going to close the hole and go back down to this other high-volume note so you see right away how yes of course you can see on the candlestick chart or the range that has formed but you can get a feel for me looking at the big Wyatt condensed profiles for great risk reward for either a move to the top end of the range of the doer dive quote here is a blurb I’d die ponies goodbye and organized flop below this red line for you short one support to break through this red line I love those types of setups so that’s how it find out here oops just look at a couple more of these I think they are so important just in terms of a powerful image so they can give it you see have this gives a different type of contractual framework or feeling than if we did simply look at one year bar chart this was pretty cool because this is copper which has been in a little bit of a Cochran and the main thing I wanted to show you was in capturing on the daily chart as a special toolbox that profile area what I showed you I just captured twelve weeks worth of data and you can see that this was our high volume node but we had our upside Boyd out front you can see how clearly that spits out was a big force on and where was our full area right between these orange lines well these warns lines also you can see here there’s a little print type of thing on this daily part I just threw an orange line here and on the top of that flake out there we had just started trading black into this area right here so that’s where we go he had an upside breakout when you spilled in that hole and now is quote aqua close what’s 344 334 private degree goes right up remove way to back up to the pop of this range here so this white little way that flaming swings out clamping with cold you can see what we’re doing in gold we’re at we hope that 133 58 today but we’ve also traded down black and fours for this area now keep this in mind because this is going to be our closing commentary this is condensed here with daily a scale a screen capture you see here all right you can see overall how Jagr it was hard as big loads big nose big nose couple holes well markets job the market swab over time it’s gradually lag a profile it’s going to look something like this okay this is the markets job once it starts and koala dating and distributing but very important but they once you start to school this fall out it doesn’t do this for much on an intraday basis although once upon a time this notion of this bell-shaped curve was a lot more powerful than it is now but it does do it once you start to look at big picture data okay will eventually fill this in a little bit flatter before it can have a more sustainable trend I’ll show you a couple cases of lat to soft parts because this looks lovely with splash mark okay we pull a lot with Sunday night for the 29th before when I was starting to put together this presentation for you and what I did is I captured that this was Caterpillar I thought it looked all over the more promising ones that was our cue markup and you can see that we had a high volume note here of all the trading range very important that price is above this mode you see that very important it’s really at is going to give you that much more confidence in trading in the direction that the market is moving away from this mode it’s nothing more than

thinking that White’s is starting to trend above a market profile breakout this was caterpillar at the time and in the next two days we came in Monday when we ride right up to this area up here on his multiplied workout for visually relaxed we had this white little hole that we could call it always get back up to the previous trading range area and that’s exactly what we did so I thought that that was pretty cool showing is how this formed a base underneath it you see you get that picture and this really guys it takes like one minute to do this less than that 10 seconds through this little screen capture here it’s just such a lovely tool I’ve not seen this on any other spot who are platforms how easy it is to use so I’m grateful for for these schools that are in this platform well let’s you take an opposite case yes cats love you guys seeing these things I’ve seen a couple of them driving around Chicago these are hot little cars you know they look really cute that I hear they’re super super fun to drive okay so here’s the profile part of cats were all convinced you complete what we did have this move up out of this high volume note here right this big bass I was back down around here and now look at how Gabby is one with this huge goal this was Sunday night and I’m looking at this one think it’s curves in a way that this is sustainable up here unless you sit there and fill out a boring sideways range to build some value up here remember auction market theory for ice-lollies and rallies until there is no more volume up there and then it’s what sustainable it’s going to revert back to the meat when worded tips will close to the XY spot ten loads an around watt 140 line or 140 I think we traded back down to there so you can see exactly what we did boom we fold in fall so far okay for restarting okay back down in full in this area I don’t know how much farther will go down it’s either going to start to trade and range and flown out here and start to build the line or else will this continue back down a little bit so you can see how big picture it just gives you one more feel that that this was not a sustainable Aoi you had a heck of a markup on a gap but I believe with earnings related and now we’re going back down and we are fooling in this whole I don’t really have any great support until we start looking at this little volume area here which comes in somewhere around I know the numbers are hard to read our chart but like 140 144 clearly would be a better support area well anyway we’ll see how that plays out but I just think that’s cool where I add these two examples sort of unfolded in the way that they did why I just want to add a lot more slides but most of them are bottoms the absence of most of them here I’m going to start speeding this up a little bit so that I’ve got time for questions so I know there was such a grew and high volume map is trading David everybody’s lost of the day right okay I’m being facetious IBM IBM oh dear poor poor big blue eyeball you note here and what happened we broke down from that all right and here suck at high volume notes and we add this gap here and now what did we do over the last week we took out that swing low so pretty evident but once this market started friending below these high volume notes it just gives you that much more confidence in their structure on profiles and here’s the daily bar chart on the left and here is the volume profile on the right and to me they go hand and glove but oscillators here’s your stochastic it was not oversold of this point but floppy serve me and wrinkling at least in a downtrending market for something where you are moving away from the value area what tendency is that this will get flat oversold level for a short until you at least pushed down into those oversold levels that’s my rule of thumb of course with your long and a Down trending market you rarely yeah all the way back up he flattened mangas lost spell here I just took them off a couple of things I wanted to again reinforce that idea here’s X 3 bar overlap our 3 bar overlap which is from the beans last year you can see the uptrend the best options happens with this sweaty pattern of rising value areas very orderly consolidation a little period will sway bar overlap

which is a bracketing market meaning we are forming a trading range the only thing you can do in bracketing markets a look at catalyze that’s the blows or everything else is pretty marginal in the middle does make trade in the middle of a trading range well initiate plot points that are right in the middle of a high volume no it is the worst this reward points that you can choose alright you’ll be much better once the market has moved away from a volume note on tip that’s hand ok here the case were indeed started tipping at hand you know why risk getting chopped up in the middle of this mishmash wait until you get that range expansion or the trend out of the balance part and you start making these consecutive higher areas next this is showing the large large exclamation here of these bouncing but residuals where we are now in the being flexible is a constant period of welding value at higher levels if you have it’s level is higher than this level again that’s a very bullish type of constructs okay I know I’m skipping fast but I wanted to show you one that cut one or two couple key things here we can see the little blocks the little trading ranges of low volume area one paradis to this right this was silver and of course I kicked extremes to make my point but markets would blow up too fast pulled out the consolidation areas will see single print will be got piled in without swapping to pull the value along the way are the ones that are most at risk for this total failure and you will see that in stocks we will see that commodities we will see that in anything very important spots on global value along the way sort of like the snps have done this was just an interesting little case because you wouldn’t really see it on the daily part this is again when I was breaking down laughter and obviously we broke down from the big trading range on flush down low on this was just simply a 240 minute chart I love the 240 minute parts to the currency what you do not see in this particular chart initially unless your eye is trying to see is that we actually did build a lot of value along the way here so it’s people’s first instinct to start shorting this market after it’s had this huge whoosh down all right so just go back to I just go back down to that slide it would be very easy almost a second supplier to say gee this looks like a great short right there this is this markets going to go back down to here why shouldn’t it go back down and we test those lows why shouldn’t it go back down and recheck for growth I’ll tell you why because we stopped and we built a lot of range or value on the way back up but now is support alright and this is what it shows up as in the profile part okay this is where we were there and you can see underneath will above this big giant ball your node if you will and this is really developed strong support that we’re going to keep it at that time at least for making a full we touch down on the load despite what what bar chart looks like and then here’s what happened okay this is where for looking at previous little falling area but instead we actually found support of the proposition previews while you area you have its work you know it’s everybody knows this seriously it’s not like you know you need to have a master to get this it’s it’s really a matter of training your eye to see it and increasing your awareness of it but all it really is the list is what built the platform for a better move up until eventually a full moon fire and now we’re talking we filled out more range here in our value area our volume node has actually even shifted higher what were the very positive developments until eventually this was like throwing a whole lot higher this is where we were looking at this initially eventually pushed that to a level where so wasn’t the volume we couldn’t sustain it and we started dropping back down into it so I’m glad that said flatly the S&P is this was an example for last year and then I’m going to show you why where we are currently in our structure okay this

is a 240 minute chart again on the equities I love the 120 in the 340 obviously a little bit of poppy formation now what have you learned in this so far okay here you can see we basically have a type of hole and this is nothing more than looking at a breach of this support level on the bar chart here’s what it looks like on the market profile all right this was this is our little area but we ended up dropping back down below when we broke out the downloaded that little top and we started filling in this hole oh we actually pulled up all the way down you can’t really see it here this is where the price was at the time that I did this chart back to this big volumes node right here alright and then what did we do after we went in and we filled in this full area we traded back and forth Emily Lau it back up again well what we did is we split time developing this whole area here we developed this whole area extensively with range trading and this was this 1480 handle last year and that’s what felt such a sustainable place or this last leg up but we had this year all right you can see it’s a lot of consolidation a lot of back-and-forth a lot of development all right and this has started to get more and more developed you can see how it’s pulling in here until we get one big giant profile and again that’s what gave us it’s nice launch now look where we are right now okay what do we have right now these equities are closing around the 16th lady handle all right we had two big high-volume nodes here so far and this is going back looking at the previous 12 weeks 1680 350 that is the big level that shows out right here okay so we’ve got a little bit of a potential hole here if we start dropping through with 76 handles 1676 not that far away if we start breaking out through the downside there you potentially have some hole that we bred back and still in this level and this is big support level is at 1644 so that will be something to keep our eye on see how that plays out and I hope that this has been insightful from a showing a little small breakout parts as you can trade these looking for support and resistance and perhaps momentum by or twelve emergencies at the support and resistance levels the key to voting is hearing that trending mode where you get that steady pattern of higher value areas in which case your main strategy should be to buy in the first hour always in a trending market the first hour is going to give you your blast for a location or if you’re in a blackening market very careful at the upper and lower positive out trading range and then lastly you can see what value in looking at this big structure and a such a lovely tool so easy to use using that profile area grabber on the TradeStation era gravity TGG and I can go back and I can look at something in in 12 weeks so for one mouse book I like the volume profiles I like to go back three days which will fit flirty middle cards and I like to go back 10 days with the 120-minute guard if you want to you can experiment with flexible current date session on a 5 minute chart perhaps the attendees but honestly I think you can train your eye to see exactly the same thing in the Far chart so that includes that concludes my presentation and I hope I have time here for some questions and I haven’t slept put you all to sleep on top of a very long long slow day today but I want to thank you G for giving me a chance to present the tools that I’ve found invaluable with their platform and hopefully you can have some fun playing with these things as well well Linda thank you very much for such a very thorough and educational presentation I do have a couple of questions here that I’d like to pass back to you first one came in pretty early and it was is information obtained from the TPO chart the same as the information provided by the volume profile charts do you look at both you know they to me um if you convince them

up it’s going to show the same thing so if I sit there and I look at the volume profile for three days laughs and I capture the market profile just for three days it’s going to have the exact same a still lack of the distribution if you will well I hope that answers the question okay you might have just answered this at the end but I’ll run it by you again here – how many days do you use to combine to see the big market profile is there a standard 5 days or 20 days somewhat well actually for for those last charts that I was showing where I really want go back and look at structure I like to go back three months I don’t think you can go back more than that on your your little profile in area that grabbed it I think it’ll only go back 12 weeks but I find that the regardless that’s sufficient for my purpose I really find that ten days is going to give you a lot to work with you know in terms of looking at their volume levels up higher or lower and most of the swing trading type of time for insight for example gold you know we fell off three or four days we rally up three or four days you know a ten day look like periods going to give you plenty to go look at the volume notes they are in fact will be Australian dollar and when gold today they all had had a good little Corrections down and you know we were looking to see if they could get back up to that previous high volume mode and it was a really good reference point it’s going back to glaze so I hope that answers you okay here’s another question and I can actually let you catch a breath for a second and answer it it’s how do you get the volume nodes on this side of the chart so if you just right-click on this chart and add study and type in VP you’ll see volume profile shows up and that’s the charge study that she’s actually using they’re showing those volume nodes then another question was those long term profiles on CQG what is it the tool you’re using for that then again what all forwards you just go to the point of tools isn’t it yes the pointer tools click on tools from pointer tools and go down to profile area and it will give you a little X but it’s almost like a Snagit michaelis functionality that you cannot grab it and grab a little rectangle of data and then it will just analyze what data for you you right-click them it’ll see all the markets profile and voila okay great well that’s all the time we have if anyone has any other questions about market profile itself our product specialists are also very well and you can just send an email in to them and they’ll be happy to do some private one-on-one training again Linda I want to say thank you very much for such a great presentation I know everybody enjoyed it this is going to conclude our webinar and again everyone will receive a link to the recorded version that will be posted within 48 hours so thank you again everybody and especially Thank You Linda Thank You Thomas good thing again are talking to our mind rather okay take care and well I’m sure I’ll see you at the FIA den so all righty why thanks thank you everyone