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 CBOT 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.