After two articles on Market Profile, I realized that people are also somewhat interested in this topic but still do not understand very well, so it is difficult to apply the transaction. Today is the third article on Market Profile which is also an article on how to enter trades with a specific and complete strategy.

Market Profile is an extremely broad topic, which can be segregated into a separate school. And of course, just a few of my articles cannot say all that Market Profile has to offer us. At the moment I can only make MP easier for you through some basic articles, giving you knowledge in a small aspect of MP.

The task of those who are interested is to dig deeper because if you just read the article on traderviet, you are not an expert in this field. MP's knowledge is very vast, there are many books written about it, and each book has hundreds of pages. To fully understand MP you need to gobble up all that material. And here, I will help you, those who are finding it difficult to approach MP, those who are confused about where to start and how to have a background in this field, here are the article for you.

Now on to the main topic. The idea behind this strategy is to detect whether the bigboys are entering, and where they are active.

WHICH WORD WILL I TRADE?

I usually trade on 4 currency pairs: EURUSD, AUDUSD, USDCAD, USDJPY. However, you can also use other currency pairs, as long as it is the main currency pair, for example NZDUSD or USDCHF. Crosses are a bit difficult to trade, it will make you lose more than win.

HOW TO SET STOPLOSS AND TAKEPROFIT?

Usually this section is left last, but I think with this strategy, placing stoploss and takeprofit is the most important. I emphasize it especially so will put it first. Please pay close attention. We will have two ways to set stop and target:

1. Stoploss = 12 pips and Takeprofit = 10 pips (this is my preferred way)

2. Stoploss = 20 pips and Takeprofit = 20 pips (for those of you who criticize how 1 earns too little)

The timeframe we will trade is M30 - 30 minutes a candle. Market Profile will represent the trading volume at the prices in 1 day, ie 1 day will have 1 profile.

STRATEGY IN THE ORDER OF THE FOLLOWING STEPS

1. Find an area with heavy volume cumulation that allows us to follow traders who are racing to buy/sell orders. Areas with high accumulated liquidity often appear in sideways, sideways markets.

2. Identify POC in the area of ​​high cumulative liquidity (who does not know what POC is, please comment below, I will explain more). The POC will be the place where the liquidity is highest accumulated in that area.

3. Wait for the price to turn around or return to the POC.

4. Place an order when the price has returned to the accumulation area and touch the POC. You will place a BUY order when you see price action at the POC or SELL when you see a price move down at the POC.

5. Capital management:

+ Normal way: set stoploss and takeprofit the way I said above, and do nothing. There are two scenarios happening: 1 is 10 pips gain, 2 is 12 pips loss.

+ The more cautious way: When your order gets 7 or 8 pips, then move the stoploss to the entry point.

6. When news is out: absolutely do not enter the order before and 10 minutes after the news. MP won't save you in this case. Follow news at forexfactory.com, and avoid trading during news release hours. For those who do not know how to follow the news, comment below.

7. Tip: You can trade in areas other than the POC, as long as that area accumulates higher liquidity than the surrounding areas. But this takes a lot of practice, it's best to trade at POC at first.

Having said the theory a while ago, now it's time for the show.


Example 2


THESE ARE SOME SMALL REQUIREMENTS BUT EXTREMELY EFFECTIVE

Broker requirements: choose a reputable broker, look at the chart, look at the tradingview or anywhere, but trade is to trade on the platform of a reputable broker, especially the spread must be short, and the price must be fast, the connection must be good . Not being invited by any broker to act in advertising films, so please limit sharing here, you guys can find out for yourself.

Market Profile graph requirements: the best is tradingview, a bit expensive, at least it's cheaper than some NinjaTrader, Delta or something, there are many companies that offer this dish but just like tradingview.