Top 3 Trade Setups PDF

Market Profile Trade Setups
Top 3 Setups
By Dean
https://getthattradingedge.in
The Traders Dream – Consistent Profitability

Every trader has one singular dream. That is to trade profitably and most
importantly be consistently profitable. Just making a profitable trade here and
there won't cut it. To be a successful trader in the long run you need to have
some consistency in your trading.
So how do you become a consistently profitable trader. Well the answer is

pretty simple, you need to understand what your competitors are doing in the
markets. Once you have tab on what your competitors and peers are doing in
the market you can then make sense of the current market development.
It's not so straightforward…
But merely knowing that you need to keep tab on your competition won't help.
You need to find a way to do that. That my friend is the real problem.
Many veteran traders tell you that trading is a zero sum game, some go even
further and say it is a negative sum game owing to brokerages and trading
costs.
So how do you make money trading? You don't actually. Yes, you don't make
money trading. You only get it transferred to your account from someone
else's account.
If you are not on top of your trading game your money will be transferred to
someone's account who is. That's the way it is.
And that is why it is of paramount importance for you to know what markets
are doing right now. The whole purpose of being able to read the markets is
to be able to figure out what the competition is doing.
And amongst your competitors there is a section of traders who are incredibly
well prepared, who have better "know how" and "know what" than you. And
they seem to come out on top every time, well almost!
Trading against SM is like banging one’s head against the wall…
These are the smart traders or as the legendary Tom Williams put it, Smart
Money [SM]. These are the traders who have figured out. So if you want to
make it in the markets, one thing you cannot afford is to go against this lot.
Majority of the traders fail because they fail to make this distinction.
Inadvertently they end up trading against these smart traders and lose
money. The sad part is they never come around to understand this fact.
Are you trading against the smart money yourself?
Do you have a way to find out what the SM is doing?
Do you have a tool that will help you in improving your market
understanding?
If you have answered "no" to all the above questions then you are at the right
place. Read on to see how you can spot the SM and how you can exploit that
information to take consistently profitable trades in the markets.
There is a way out of this mess…
The solution is Market Profile. In this short document I am going to give you
my three most popular trade setups using Market Profile.
Now I don't usually use such words as trade setups, but that is what gets
through to the trading majority. Actually these are setups which form when a
specific set of conditions are met in the markets.
These form when the SM are acting in a particular way. And based on that
information, about what the SM are doing, you can position your trades in the
markets, such that, the risk is minimized and you get to shoot for greater
rewards.
One caveat before you dive into these patterns. Don't try to memorize the
patterns per se. These patterns form because the SM behave in a certain
way, try to capture the essence of their behaviour. Because the patterns are
not bound to repeat the exact same way they occurred in the past.
But one thing that won't change is human behaviour and the logic behind
these trades. Amateur traders keep behaving in a certain manner and SM
keeps exploiting them to transfer wealth into their accounts.
A chart is worth a thousand words…
Ok so let's start with the Top 3 Trade Setups Using Market Profile
Example 1: Inventory Adjustment Break

As I said earlier, laying great defense is also a part of being consistently
profitable trader. Keeping an eye out for an Inventory Adjustment Break [IAB]
is one such thing. That is the first pattern that I want to talk about.
Refer these 3 charts below with ample annotations that make the point clear.
Example 2: Absorption
This is probably my favourite pattern. The reason is that it usually gives a

very rapid move and it also gives time to place your trade.
As with all other patterns and setups using MP, the current context is
paramount. But trading with a blind eye towards the big picture will catch you
unawares sooner than later.
So here is an example of absorption, a bit unlikely one, which clears the

point.
Example 3: Fresh Breakouts and Breakdowns
These usually mock the traditional 'P' and 'b' shapes. Often misleading novice
MP users. While the amateurs are looking at this as a sign of a weak BO or
BD. In Fact it is a sign that suggest exactly the opposite.
And Break Out will have some element of short covering in it and vice versa
for a break down. But what is of importance is new business coming in and
keeping the prices beyond the BO/BD levels.
Conclusion – Your Dream Can Come True
There you go, the Top 3 Setups I use with market Profile. The devil lies in the
details. These are the subtle signs that sometimes give expert MP users the
ability to look far beyond what is obvious on the charts.
Every technical tool has some merit, but the way Market Profile helps in
judging the competition, both strong and weak, takes this tool to another
level.
I hope you liked these three examples I shared with you. They are a bit
descriptive but so is trading. It can never be brought down to a handful of
simple rules.
A serious trader has to apply himself and learn the art of reading the markets.
Market profile can certainly give credibility to one's analysis, which will help
when you put on trades in real market situations. But there is no substitute to
hard work.
Reason why we have the Market Profile Gateway To Profits Course. This
course goes into great depths of the subject and provides you a crystal clear
framework to convert your market understanding into tradeable information.
So you can take those timely trades with reduced risk and increased
possibility of rewards.
Do check out the course if you want to read the markets as seen from the
examples above. Commitment to learning is what will take you to the next
level. This small investment today in this course will likely save you a lot in
losses and the related heartburn.
See you on the other side.

Dean

Top 3 Trade Setups PDF

Uploaded by

Copyright:

Available Formats

Top 3 Trade Setups PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Top 3 Trade Setups PDF

Uploaded by

Copyright:

Available Formats

Market Profile Trade Setups

The Traders Dream – Consistent Profitability

So how do you become a consistently profitable trader. Well the answer is

It's not so straightforward…

Trading against SM is like banging one’s head against the wall…

Are you trading against the smart money yourself?

Do you have a way to find out what the SM is doing?

There is a way out of this mess…

A chart is worth a thousand words…

Example 1: Inventory Adjustment Break

This is probably my favourite pattern. The reason is that it usually gives a

So here is an example of absorption, a bit unlikely one, which clears the

See you on the other side.

You might also like