Market Profile exposes you to VAL(Value Low),POC(Power of control), VAH(Value High).
VAL: Value Low - trading below it downward pressure similar to "Low ema".
POC: Power of control - Having moved above VAL, it needs to move above this point to have some control over uptrend similar to "Close ema".
VAH: Value High - Having captured POC, it needs to stay above this to assert itself of the uptrend and move higher to create new values similar to "High ema".
When Nifty is below VAL: Stay short & if far away from it and at a support zone, cover.
When Nifty is between VAL & VAH, Trade as in a sideways market.
When Nifty is above VAH, stay long and book out at earlier resistances or target areas.
There are VAH, POC, VAL for various time cycles. Have them in your trading plan to play it better.
From Now onwards I will be publishing market profile for daily as well as weekly.
Market Profile for 18Jan2010
Daily VAH - 5680, POC - 5664, VAL - 5648
Weekly VAH - 5878, POC -5812, VAL - 5746
Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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