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 MARKET PROFILE TACTICAL STRAEGIES FOR
DAY TRADING

INTRODUCTION

This program is a traditional Market Profile based course providing detailed and exact trading setups to
use during day trading. You will learn analyze the market from the second it opens and have a series of
tactical trading strategies in hand to take advantage of various opportunities market will present.

Our trade set ups will not be found in any books or copycat websites simply because they are the results
of many years of our market interaction and trading experience.

This program is potent, efficient and it works. You will learn to trade based on skill, market
understanding and sound money management. No more guessing, hesitations or surprises.

We keep the content of our program concise to the point without deceptions. We do not fluff the
content of our educational materials over weeks in order to charge you thousands more. I guarantee
after few hours watching our course you will tremendously improve your trading performance and
master Market Profile trading.

OPENING RANGE TRADE

The opening range trade. Learn apply precise trading strategies to the opening range of the session.

The right opening range must meet the balance between being over sensitive and too late. If the setting
is too sensitive we will get too many unreliable buy/sell signals. If the setting is too conservative, we will
get late buy/sell signals and we may miss great trading opportunities.

ES opening range: 10 minutes

Gold opening range: 10 minutes
Crude opening range: 5 minutes

Opening range trade is the first and usually one of the best opportunity presented by the market during
the whole day session.
First we must define the range of time we wish to assign to our opening range. We use the first 10
minutes of the session as our opening range for Gold and ES, 5 minutes for crude. When the first 10
minutes of trading elapses a visible bracket outlines the price range of the first 10 minutes. From that
point on the trading plan starts.

The first thing to monitor is the nature of the open within the opening range bracket.
A. If an open drive is visible within the opening range bracket, a break of price out of the opening
range should be an initiative trade with a protective stop below/above the opening range. Targets can
be to hold the trade till a range extension takes place or until F period is in place. In this case the open
will visibly be either at the extreme high or low of the opening range bracket. Often time an open drive
breaking out of the opening range seals either the high or low for that session and the open is never
challenged during the rest of the session.

Chart1: Opening range break with an open drive

B. If the opening range breaks up/down with an open auction, the first break out of the opening
range is to be avoided but a second break to the opposite side of the first break should be acted on if
the opportunity is presented. The reason the first break out of the opening range is to be avoided is due
the lack of directional conviction presented by an open auction. Since the open is non-convictional
therefore the first break out of the opening range has a small chance to succeed. However many
ignorant traders will take the first trade out of the opening range regardless of its low probability to
succeed. Once price fails to follow through in their direction and suddenly reverses to go break the
opposite side of the opening range, they all start to lose money without exception. A break of the other
side of the opening range will run over stops and a great impulse trading opportunity should be
presented for the astute trader. Since the open auction condition is less certain than the open drive, we
will use a protective stop above the open and we will target a full range of the opening range as our
price objective.

Chart2: Opening range break with an open auction

C. The range of the opening range can also be uses as potent dynamic support resistance during
the developing session. Once the opening range is set, you can project that range 1x 2x 3x from the
high/low of the opening range and use them as future support resistance levels. The academy uses this
method of dynamic support resistance projection over the traditional Initial balance range projection
since the opening range is define after the first 10 minutes vs. the initial balance set after the first hour.

Chart3: Opening range projected extensions

IMPORTANCE OF THE FIRST 3 TIME BRACKETS

Learn the vital importance of each 30 minutes time brackets, trading strategies and
market implications.

In traditional Market Profile the session is subdivided by 30 minutes brackets and each
bracket is assigned a letter starting with letter A (first 30 minutes) then B, C, D….. all the way
into the close of the session.
All time brackets are not equal. Certain periods are more important than others. The
following time brackets are the ones we should pay special attention to:

A Period

A is by far the most important period of the session. At the open, everybody is at the same
starting point and those with the best market understanding able to project the right market
direction from the start will make the most money. These are facts to know about A period:

. If the open is at the extreme high or low of A period (open drive) most likely the high or
the low of the session is in place and the remaining of the day will put in the rest of days
range. In such case we want to take the opening range break up/down trade as explained
above and hold the trade till a range extension takes place. Protective stop is high /low of A.

Chart 4: A time bracket holding a low

. If an open drive is reversed a very severe opposite reaction should take place. Whatever
range we established with the open drive should be projected to the opposite side of the
open once the open drive is reversed. As a result the open once holding the extreme high or
low of the session ends up being placed in the middle of the day’s range. Trading strategy is
to reverse the original open drive trade once the other side of the opening range is broken.
A protective stop should be placed above/below the opening range. Target should become
the range of the open drive projected to the opposite side of the open break

Chart 5: Open drive reversed

.Guessing the direction of the range extension based on the open:

If the open is at the middle of A’s range then we want to wait for A period to end and see
which side of the open we close. If we close above the open then the range extension
should be taking place to the upside. The trading strategy is to go long/short any time during
B period with a protective stop above/below A period and hold the trade until a range
extension takes place.

Chart 6: Open middle of A’s range

. Extremely wide A period range

If the Range of A period is huge due to an external news event it will most likely hold 80% of
the day’s range. In such case we will wait for B period to reach 50% of A period range and
we trade responsively from that level in the direction of the initial impulse move. Each time
a protective stop is used above or below A’s extremes and target is the high/low of A period
retest, or a range extension to take place.

Chart 7: Extremely wide A period

B Period

B period is usually used as an entry point based on the information gathered by A period.
However there is one situation when taking place could provide a great trade opportunity. If
B period breaks the high of A period by only 1 to 3 TPOs and rather than following through
price suddenly reversed and cross through the open, an open cross trade should be initiated
with a stop above below high/low of B looking for a break of the other side of A.

Chart 8: B fake break of A

 C Period
C period is the period we look for range extension. During C period we are looking for 2
opportunities:

1. If A and B periods indicate a range extension should take place in either direction and C
period fails to deliver the range extension in that direction expect a violent reversal and a
range extension to the opposite side. A trade can be initiated when D period breaks the
high/low of C with a stop below/above the high/low of C and a range extension as target

Chart 9: C R-E failure creating violent opposite R-E

2. If C period remains inside the initial balance and the direction of the range extension is
unclear a trade can be initiated when D period breaks the high/low of C with a stop
below/above the high/low of C and a range extension as target. D break of C either way
should indicate and clarify which side the range extension will take place since C becomes
an inside period within Initial balance.

Chart 10: C period inside IB

 DEVELOPING VALUE AND INTIAL BALANCE

Learn the relationship between developing value are and Initial balance

The location of developing Value area is relationship to the initial balance will provide
valuable information as to the strength or weakness of the session. If value area is
positioned towards the upper part of the initial balance one can conclude the buyers are in
control and a successful range extension should take place. Once price exits out of the initial
balance, a break trade can be initiated with a protective stop place at the opposite extreme
of the value area. Target will become 1x the initial balance range. Same principle applies in
opposite if the value area is positioned towards the lower part of Initial balance.

Chart 11: Value developing at upper part of IB

 FAILED RANGE EXTENSIONS

Learn Identify failed range extension with precise trading strategy to respond.

The most notorious failed range extensions are displayed by C period. Specifically if C period only
extends the range by 1 to 3 TPOs outside the initial balance and fails to follow through. Once such
condition is visible you must wait for C period to end then buy/sell the high/low of with a break of
D period. Stop goes above/below the high/low of C and target becomes a range extension to the
opposite side.

Chart 12: C 3 TPOs failed R-E

There will be times where C will extend the range by more than 3 TPOs and then fail by living
behind a visible buying/selling tail. To us it won’t make a difference since we only count a range
extension as a confirmed failure until D period breaks the high or low of C period.

If D period ends and its unable to break the high/low of C, it will indicate the range extension to
most likely be valid and further move in the direction of the range extension is to be expected
during the developing session. If you are already involved in the R-E, your stop goes C and you will
remain in the trade. IF you are not involved you want to buy the break above C or D period with
the following time bracket and use a protective stop below the low of D.

Chart 13: D breaks high of C R-E failure confirmed Chart 14: D fails to break low of C R-E
 Continues

If after C period is completed, D period breaks up/down the high or low of C period first confirming the
direction of the range extension we no longer take a trade if D period breaks the opposite extreme of C
period. Reason behind this is D period is not a solid period to hold a high or a low for the developing
session and most likely further push in the direction of the range extension should take place later
during the session. In such case if we have an opportunity we buy/sell a retest of the developing lower
value area with a protective stop above/below A period and target a retest of the high/low of the initial
balance or hold the trade till the close.

Chart 15: D breaks high of C looking for a pullback to go long

UNDERSTAND PRICE ACTION AND ANTICIPATE FUTURE
MARKET DEVELOPMENT

Action around the open

The first clue provided regarding the day type comes from the price action around the open. If
the open is quickly rejected from one side or another that’s the first indication about
buyer/seller control. Each initial open rejection usually has a subsequent retest of the open. If
during the retest of the open price is not allowed to trade through the open, then one can
assume the next drive should be significant in the same direction of the initial push from the
open. The trading strategy is to wait and see if price gets away from the open right at the start
of the session, if it does then the first retest of the open becomes a buy/sell stop against the
current high/low, target to hold the trade until a range extension takes place.

If price crosses through the open more than 4 times within A period, you must stay out of the
market since such back and forth through the open indicates a dull market. Trading strategy is
to wait for F period to end then fade the extremes of the developing value areas against the
day’s high/low. Targets would be rotation to the other extreme of the developing value area.
 Chart 16: Multiple cross through the open wait for F period

Clues in Profiles shapes

Importance of the developing statistical bell curve shape: When the profile is in the process of
being developed you must keep a close eye on how it’s shaping up. Such observation will
provide you with valuable ability to anticipate price behavior.

The items we are looking for are:

A. Areas of imbalances. While looking at the developing profile if you see obvious areas of
imbalances where one side contains more TPOs than the other you then know most likely
price should travel to the underdeveloped area in order to balance the bell curve. A trade in
that direction could become a possibility

B. Holes: If notice areas in the profile containing holes, start to be aware because most likely
price will trade over the holes in order to put in TPOS over those areas in order to balance
the profile

C. Ledges, Minus developments….these items have already been covered.

D. Double TPOS top or bottom as sign of unfinished top /bottom . Anticipate double TPOS
top/bottom to be broken during the day. If you see one trade in their direction until broken.
However this is less valid in crude since double TPOS tops and bottoms have a tendency to
hold fine.
Painting the wall

We want you to look at our Market profile chart like a wall being painted. Any areas on the wall
missing paint will need to be brushed over. Same thing with your MP chart, all areas missing
paint (TPOs) will need at some point to get a layer of TPOs over them in order to balance the
profiles shape. Never trade against areas needing layer of paints.

Chart 17: Painting the wall

 BULLISH BEARISH LEDGE

Learn take advantage of bullish and bearish ledges.

Ledges are either bullish or bearish. They are formations developed on the Market Profile charts as a
result of price action creating imbalances within the statistical bell curve.

A bullish ledge will represent a price at which 4 TPOs or more are lined up vertically making the
formation look like a flat cliff. When a bullish ledge is formed it will become very visible on the Profile
chart. The end result is for the statistical bell curve to balance itself price will need to go trade through
the ledge at some point and place TPOs over the area of the flat cliff.

This anticipated balancing of the profile and rounding up of the ledge can give the trader an excellent
trading edge. When bullish ledge becomes visible, never short or hold a short trade against a bullish
ledge. Two, wait for price to retest the low of the developing day to go long using a protective stop
against the day’s low and target the bullish ledge. However if a ledge refuses balance out it could be a
strong sign of commercial capping at the ledge price.

Apply the exact methodology in opposite to a bearish ledge

 Chart 18: Bearish ledge

IDENTIFY IF THE TOP OR BOTTOM OF THE DAY IS IN

PLACE

Learn when the session’s top or bottom is in place and which time brackets have the best probability
to put in a top or a bottom. Each time have a specific trading strategy to respond

A finished statistical bell curve unit is composed of an unfair low, an unfair high and rotation at the
middle. Until both the unfair high and low are not in place price should distribute directionally. Only
when the 2 extremes are in place the unit is finished and rotation should start to develop. Knowing
this, the question becomes what are the best time brackets with the highest probability to hold a high
or a low for a given session.

Based on our Experience 5 time brackets have the highest odds to be a top or bottom holder: A, C, F, H,
I.

A Period: Since the open is always within A period and since the open often time is close to the high or
the low of a session it makes it logical for A period to be among strong candidates to hold a bottom or a
top.
 Chart 19: A period holding the low of the session

C Period: C time bracket is notorious to be the period in charge of extending price outside the initial
balance. As we have covered this earlier, not all range extensions will succeed, as matter of fact many
will fail. When a range extension attempt fails often time price will reverse and go back to extend the
range on the opposite side of the initial balance. Once this happens usually the top/bottom which fail is
never revisited during the trading session and C period ends up holding either the high or the low for
that session. Trading strategy would be to initiate an opposite trade once price enters the developing
value are, using a protective stop against the high/low of C and targeting an opposite range extension.
 Chart 20: C period holding the low of the session

F Period: If a range extension is successful the time period most likely to terminate the move is F. First F
is one hour after C. Usually if price keeps on going during D, E it will start to get exhausted during F
period and after driving up/down for 3 consecutive periods (C,D,E). As a result a buying/ selling tail
composed of F period during the developing day has a great chance to either hold the high or the low
for that day. Trading strategy for such condition would be to buy/sell as soon as price breaks the low of F
with the following period, using a protective stop above/below the high /low of F period. Target would
be a return to the other side of the value area.

Chart 21: F period holding the high of the session

H Period: We consider H period to be a pivotal time bracket for the session. Usually 2 things happen
during H period. One, it will retest the high/low put in by other time brackets and fail to follow through
ending holding the high/low for the session. Two, it will break the previous high/low of the developing
day for a directional move into the close.
Trading strategies:
If the H is showing visible lack of follow through while retesting the high/low of the day wait for H
period to end and take a break of H low/high with I period using top/bottom of H as protective stop and
targeting either the open of the opposite value area high/low
If H decisively and visually breaks the high /low of the day, buy/sell a retracement of I period towards H
50% range, using a protective stop at the opposite extreme of H, targeting to hold the trade all the way
into the close.

Chart 22: H breaking the High of the session Chart 23: H Failure to follow through
I Period: I period is very similar to H period. If H fails to make a new high in the session most likely I

period will attempt it. If the break of the high/low is a success, then price will drive directionally into the
close of the session.
If the break is a failure then I period will most likely hold the high/low for that session. In such event you
buy/sell when the opposite side of I period is broken with the next time bracket. A protective stop is
placed above/below I period High /low and target becomes the opposite side of the developing value
area.
If I period fails to make a new high all together it will be further sign of strength or weakness and a
reversal of price should ensue.

Chart 24: I successfully breaking the high Chart 25: I period Failure to break up
holding the session high
 WHAT TO LOOK FOR WHEN PRICE IS OUTSIDE THE
PREVIOUS DAYS RANGE

Learn calculate dead support resistance levels when price is outside the previous session’s range. You
will no longer be in the dark when dealing with price outside the previous session range

When price is outside the previous sessions range the support resistance levels are very well defined
and easy to identify. The dilemma is what to look for when price is outside the previous sessions range.
We have developed a method of price projection outside the previous sessions range based on the
previous session range. The method is simple but yet very effective.
A. We start by calculation the range of the previous session from its extreme high
to tis extreme low
B. Once we know the total range of the previous session, we calculate 25%, 50%
and finally 100% of that range
C. We project 25%, 50% 100% of the previous sessions range from its extreme
high and low. As a result we get 3 levels of resistance above the previous
sessions high and 3 levels of support below the previous sessions low.
D. We wait to see if price exits the previous sessions range, if it does then we
know ahead of time where our dynamic support resistance levels are outside
the previous sessions range
E. Among the 3 levels of projected support resistance levels we described the
most notorious one is 50% of the previous sessions range projected from its
high and low. This level is extremely potent when reached with an unfilled gap
generated from the developing day.

Chart 26: Projected levels outside the previous day’s range

 TRADING AND UNDERSTANDING GAPS

Learn how to trade gaps with precise trading strategies.

Based on market studies there are 3 sorts of gaps markets can encounter

A) Break away gap: This kind of gap usually takes place when market has been going through
several sessions of consolidation within an overbought/oversold condition and finally price exits out
the consolidation with a gap. Break away gaps are usually the start of a directional move and are
often left unfilled for several sessions. The strategy is to buy the open stop below the previous
session close, target a range extension, or hold the trade into the close of the session.

Chart 27: Break away gap

 B) Continuation gap: This sort of gap will take place in the middle of an already existing directional
move. It’s less powerful than the breakaway gap and usually fills within the same or following
session. The trading strategy would be to buy the close of the gap if happens within A or B period.
Use a protective stop below the previous session low and target the days open or hold for a range
extension.

Chart 28: Continuation gap

 C) Exhaustion Gap. This kind of gap will take place in the late stage of an already well-established
move when market is super overbought/oversold. It’s a gap caused by unsophisticated investors and
it’s usually filled within minutes of the open or reverses severely after a failed range extension.
Trading strategy is to sell the open and sell again in case there is a range extension, target close of
the gap.

Chart 29: Exhaustion gap

IDENTIFY IF THE HIGH OR THE LOW OF THE SESSION IS
IN PLACE OR NOT

Learn how to predict if the total day’s range is in based on the completed statistical bell
curve unit theory.

The sessions range will only be in place when the extreme high and low are both in place.
Based on price discovery theory, price will fluctuate directionally until it encounters opposite
reaction strong enough to stop and reject price to the opposite direction. Once the rejection
becomes visible in shape of a buying/selling tail, only then one can assume the top or the
bottom for the session is in place. However it is important the period holding the top or the
bottom is composed of either A, C, F, H or I. Once the period is finished and the rejection
visible, the trading strategy becomes to take a break of one of those time brackets with the
following period and use a protective stop above/below the bracket holding the top/bottom.
If the high/low is held by A period then target is to hold the trade till a range extension takes
place
If the high/low is held C period, then target becomes a range extension to the opposite side
of the IB.
If the high/low is held by F,H,I, then target becomes the opposite side of the value area from
where the period stands.

Chart 30: A holding low Chart 31: C holding low Chart 32: F holding low
Chart 32: H holding high Chart 33: I holding high
 STOP MANAGEMENT STRATEGY

Learn Market Profile level based professional money management.

We strongly believe markets fluctuate from relevant levels to relevant levels. It is very
important to enter at specific predetermined levels and hold the trade to the next
predetermined level. This approach not only enhances trade performance but also greatly
eliminates the risk of getting stopped by market noise. We recommend selecting stops from
levels and not dollar amount. Once your trade reaches 50% of your targeted range, your stop
goes to break even. At 75% of the targeted range stop moves to 50%. After that point you
wither reach target or get stopped out cashing in 50% of your targeted range.