Identifying Market Value in Real Time. BY DR. Marketplace Books. Columbia, Maryland. Published by Marketplace Books Inc.

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Identifying Market Value in Real Time. BY DR. Marketplace Books. Columbia, Maryland. Published by Marketplace Books Inc.

All rights reserved. ISBN: ISBN Reproduction or translation of any part of this work beyond that permitted by section or of the United States Copyright Act without the permission of the copyright owner is unlawful.

Requests for permission or further information should be addressed to the Permissions Department at Marketplace Books. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional service.

If legal advice or other expert assistance is required, the services of a competent professional person should be sought. This book, along with other books, is available at discounts that make it realistic to provide them as gifts to your customers, clients, and staff. For more information on these long lasting, cost effective premiums, please call us at or e-mail us at sales traderslibrary. All Market Profile charts used in this book have been produced using MarketDelta, one of the leading Market Profile charting platforms.

Some of the charting features displayed in the book may not be available on other Profile platforms. A special thanks is hereby extended to the MarketDelta team for their support and pioneering work in the field. Introduction to Market Profile. Chapter One: Market Profile Charts.

Chapter Two: Value Area. Chapter Three: Financial Market Participants. Chapter Four: Auction Markets. Chapter Five: Analyzing the Open. Chapter Six: Market Profile Structures. Chapter Seven: Split and Merged Profiles. Chapter Eight: Volume and Value Tracking. Chapter Nine: Volume Tracking Indicator. Chapter Eleven: Profiles and Stocks. Chapter Twelve: Forex Meets the Profile. Challenges and Opportunities. About the Author. Trading Resource Guide. I t is important for anyone interested in learning to become a.

A smart trader is continually learn-. The markets are always changing and one must learn to adapt and adjust to the changes as they occur. It is both unreasonable and unrealistic for any individual to expect that they will ever beat or conquer the market as many misleading book titles often suggest.

The goal of a successful trader is never to beat or outsmart the market. The goal of a successful trader should always be to trade in harmony with the market. Once a trader under- stands the landscape of the market, they can participate in market moves and profit from the activity that takes place in the market. Trading requires many different types of skills and it takes time, effort, patience, and discipline to acquire and master these skills. Many new traders start their trading journey with a strict focus on price and price movement in the market.

They quickly discover that a focus on price alone does not lead to profitable trading and that a price movement without volume to support it will quickly fizzle away. After gaining some experience in analyzing the market, traders begin to realize that even a study of price and volume together is not suffi- cient to gain an understanding of the markets.

Time is another major element or dimension that must be added to the equation. Different traders have different time constraints and different goals. Actually, this is often the main characteristic that distinguishes between a trader and an investor. A trader has a short-term horizon, while an investor has a longer-term perspective on the market.

Consequently, all investors are traders in the market, but they have different time considerations for their investments or trades in the market. A price that may be too high for a daytrader may in fact be a bargain for a longer-term trader or investor.

As any type of trader begins to incorporate the time differential into their analysis, they are able to better understand the multi- dimensions of the market and gain a much broader perspective of the market. However, even with time, price and volume, they are still missing a critical piece of the puzzle. They are missing the main fac- tor that drives the market; the force that is behind all major trading decisions. They are missing where value is in the market.

To profit in any market, a trader must buy low and sell at a higher price or take a short position and cover or buy back at a lower price. This cannot be accomplished without an understanding of where value is in the market. Value is the core concept behind any trade or exchange. When a large instructional buyer decides to buy an item, it is because they have determined that its current market value is lower than its future value.

The opinions and perspectives about future market prices will certainly vary significantly from one. In the case of an intra-day trader, the future value may simply be an anticipation of where price will be in the next five or ten minutes.

On the other hand, a swing trader may make their trading decision based on where they anticipate prices will be in the follow- ing week. Moreover, a position trader may be looking at future price and value in a month or a year. The one common denominator is that all traders make their trading decisions based on their perceptions of value in the market. In the past, traders have never had an analytical tool or a charting technique that helped them to identify and track value in real time for every time frame.

Now, Market Profile charts make it possible for traders to identify and track value in real time in every time frame. This is the secret behind the power of the profile. The Market Profile gives us the ability to use this powerful knowledge to identify trading opportunities in the market and make better trading decisions. It helps us to better plan our trades; to better time our entries and exits to select more effective targets and stops.

Moreover, we are able to learn valuable information about the condi- tion and the structure of the market. We can identify balanced and imbalanced markets; we can identify fair prices, unfair highs, and unfair lows for any given session. Furthermore, the profile allows us to follow the dynamics of the market auction process. The profile is an invaluable tool in the arsenal of any serious trader or investor. Market Profile charts and concepts are relatively new to the invest- ment and trading world.

The idea for the profile began in the early s. In an attempt to create greater transparency for off floor traders and attract new business to the exchange, the Chicago Board of Trade CBOT started to make some market data and information.

The purpose of this information was to allow off-floor traders to gain some insights into the activities of floor traders. Steidlmayer and Rosenthal were both strong advocates of a more transparent market. They worked together, searching for ways to open up the markets and attract more business to the exchange. This idea of information sharing was not embraced by everyone; there were many skeptics and foes against this information-sharing effort.

Many local traders were concerned that their livelihood may be in jeopardy and felt that market data and floor information was a privi- lege reserved only for those traders on the floor.

On the other hand, Steidlmayer and Rosenthal were true visionar- ies that believed differently. They felt that openness would help to grow the markets and generate greater revenue and prosperity.

They believed that the more information they disseminated, the more participants would be attracted to trading on the exchange. They understood the nature of the markets and that the new technologies being developed would create many new opportunities for future growth.

However, these opportunities were contingent on the avail- ability and accessibility of market information and data. Using the concept of a statistical bell curve, Steidlmayer developed a new charting system to display actual trading data from the market and show the type of market activity that was taking place in every session. The seeds for the Profile were planted, and this new charting system developed by the CBOT demonstrated that as the trading data for each instrument was organized in a statistical normal distribution, the classic shape of the normal or bell curve frequently emerged.

A form of order and organization was observed for all commodity markets. The Profile chart was born and gradually started to gain the. Initially, only profes- sional traders and experienced investors utilized Profile charts. However, over the past two decades, Profile charts and concepts have become accessible to everyone that is interested in learning to use them.

Advances in technology, sophisticated new trading platforms, and longitudinal studies of market data now make it possible for us to scrutinize and analyze valuable market data in ways that were un- imaginable in the past.

As a result, the Profile has evolved to become one of the most powerful analytical tools for traders, investors, and market analysts. Profile Platforms. As more and more traders and investors are recognizing the value and power of Profile charts, more and more platforms are now in- cluding Profile charts.

Naturally, different platforms will have differ- ent styles and various distinctive features. I have personally worked with the CQG platform www. While there are certainly a number of other Profile platforms available, these are the only three that I have personally worked with. It is always helpful for anyone interested in learning about the Profile to obtain and work with a demo prior to selecting the platform of choice.


Market profile or orderflow?

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John Keppler - Profit With the Market Profile

Jacket Description: Are you ready to transform your trading technique? Now you can do away with lagging and confusing indicators piled on charts, and use the Market Profile to sharpen traditional technical analysis methods such as support and resistance, chart patterns, and trend lines. Developed in the s by finance experts at the Chicago Board of Trade, the Market Profile has become one of the most powerful analytical tools for traders, investors, and market analysts. In his brand-new book, Dr. John Keppler, seasoned business professor and the founder of StrategicTrading. See with clarity what is happening at the present moment in stocks, ETFs, futures, commodities, bonds, and currencies. Test your understanding and knowledge with interactive self-tests.


John Keppler - Profit with the Market Profile.pdf

Market profile makes it possible for profile traders to gain a clear view of price developments in the market as they occur. This course provides traders with an unmatched practical and insightful Market Profile Education. Market Profile gives traders what Dr. The valuable data and information provided by the profile was once only and exclusively available to floor traders and market makers. New technologies now place this vital information at the fingertips of any individual trader. Learning to use this valuable information provides individual traders with an incredible trading edge.

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