Steidlmayer/Distribution Analysis

[Bin57again]

Hi
Anyone use this sort of TA in their work? I read a bit into it and was really attracted by the huge risk:reward trading set-ups but in real time it looks a waste of time - very subjective and to be honest, set-ups look like trading DTs/DBs.
Bin

 

[tech/a]

Done quite a bit of study on Steidlmayer.
Also known as "Market Profile"
Its the study of Time Price and Volume.
One of the few Technical analysis disciplines which I give much credence to as a stand alone tool.

Is plotted using 15 min charts where the price action for that time is plotted.
A profile often becomes apparent.
Up until recently had to be hand plotted and as such has little following here.

The Best book I have found on the topic is here at CBOT.
Peter Steidlmayer worked at the Chicago Board of Trade.

http://www.cbot.com/cbot/pub/page/0,3181,1184,00.html

Best software I know of.
http://www.windotrader.com/Home/tabid/36/Default.aspx

No I don't have it.

I don't actively use the Time,Volume and Price plots but can recognise formations in price whilst looking at charts,to this extent I apply a couple of Principals in trading and analysis only really as I can see them forming and the information learned warns me of a likely event.

But hardly use of M/P.

 

[Timmy]

Hi Bin and Tech. Bin, I use MP at a very simple and basic level for what I trade - I mean really simple and basic. Each day before the start of regular trading I note yesterday's VAH, POC and VAL, and the price distance between VAH and POC, and between VAL and POC. I note these 3 levels as where the price is in relation to them is something that can impart some information to me on trend tendencies, and also because a lot of participants in my market are aware of and refer to these levels. I note the distance between these points as that information can also help me to have an awareness of trend tendencies. So, in effect, I use MP this way to give me background information, rather than to provide any entry/exit criteria. I think the way I use MP would be laughably simple to the real users of MP, but they have a tendency to be a non-dogmatic lot (at least the ones I am aware of are), which is always nice.

In my opinion (and FWIW) it is an alternative way of presenting data, and is a method of presenting the data that can highlight some aspects of price/volume behaviour and not highlight other aspects. For me I prefer the ideas behind Pt & Figure, and Candles/Bars and hence use these in preference.