Market Profile
TradeMaven Proudly Offers Market Profile!
Market Profile is a professional trading tool used to analyze the distribution
of trading volume to identify market patterns in the electronic futures
markets. The interaction between short-term and long-term market participants
distributes trading volume into a bell-shaped curve. It is in this bell
curve that fair value can be determined. "The back-and-forth movement
reflects the continual tug-of-war between the 'forward price influence'
of long-term traders and the "backward price influence" of short-term
market participants." Source CME Market
Profile Handbook
Market Profile is a decision support tool not a trading system. In order
to use the the software's tools effectively, you have to know what makes
them work. Regardless of the complexity of your analysis. The conceptual
framework of Market Profile is based on the same governing principals:
- The Auction Framework
- The Negotiating Process
- Balance and Imbalance
- Tandem Time Frames
- Short-term vs. Long-term behavior
- Short-term vs. Long-term traders
- Price relating to Value
By understanding these concepts and using the Market Profile software
in your analysis, patterns in virtually any market can be readily identified
as they develop. Market Profile effectively organizes time, trading volume
and price information, making it possible for traders to "see which
price areas the market is accepting or which ones it is rejecting…and
adjust their trading styles accordingly." Source www.cbot.com.
CBOT Market Profile® and Market Profile® are registered trademarks of
the Chicago Board of Trade (CBOT), which holds exclusive copyrights to
both.