Courtesy of
J. Peter Steidlmayer developed Market Profile in the 1980s in conjunction with the Chicago Board of Trade.
Market Profile is a graphical organization of price and time information. Market Profile displays price on the vertical axis and time on the horizontal axis.
Letters are used to symbolize time brackets. Marketprofile is an analytical decision support tool for traders - it is not a trading system.
Market Profile reveals pricing patterns from any market as they are developing. By effectively organizing price and time information, it is possible for traders to see which price areas
the market is accepting or which ones it is rejecting . . . and adjust their trading styles accordingly.
A price level that has been confirmed over time takes on added meaning. A price that is touched only briefly is just a price and little more. Confirmed by time, however, a price can reveal market value.
Marketprofile Handbook (PDF)
Handbook for market profile courtesy of the Chicago Board Of Trade. Adobe Acrobat required.
|
