Cover some of the essential basics of Market Profile (MP). See how to spot the 3 core concepts of MP using profile structure. Cover examples showing how to “assess the risk” of a position. Using longer term profiles to get context.

1. Presentation – II
MARKET PROFILE - CONTEXT BEHIND THE CONTEST
Practical Trading Strategies
By Dean
www.getthattradingedge.com

2. Disclaimer
• Information shared here is not a trading recommendation, and we are
not a business of providing any.
• All information shared here is strictly for educational purposes only.
• Please use your discretion while acting on the information shared
here.
• We will not be responsible for any resulting profits or losses.
• Please consult your registered financial advisor before you make any
trading and investment decision.

3. Note
• In case of technical problems the webinar will be rescheduled at a
later date.
• Please post your questions in the chat window, I would cover them at
the end of the presentation if time permits, else they will be covered
in a separate QnA sessions for all the Slack Group Members.
• This webinar is being recorded and will be available to BellTPO
customers for free for a limited period of time.
• Those who missed last webinar will get link to join the Slack Group at
the end of this presentation.

4. Objective
• Cover some of the essential basics of Market Profile (MP).
• See how to spot the 3 core concepts of MP using profile structure.
• Cover examples showing how to “assess the risk” of a position.
• Using longer term profiles to get context.

5. What is MP
• It is a way of organizing data.
• Conceptualized by Peter Steidlmayer at Chicago Board of Trade.
• Further developed by James Dalton in his book Mind Over Markets.
• Market Profile (MP) was designed to understand the trading activities
of the floor traders at CBOT.
• But MP is now used to gauge the composite activities of all market
participants.

6. What do the letters mean?

7. How is data organized in MP?

8. How MP uses the traditional Bell Curve?

9. MP Core Concepts
• Price is an Advertising Mechanism.
• Time is the Regulator.
• Volume measures Degree of Success of an auction.
• 3 Basic Principles
• Balance vs Imbalance
• Acceptance vs Rejection
• Change vs Continuation

10. Day Types – Bal vs Imb / Acc vs Rej / Cont vs Chng
Double
Distribution
Trend Day
Non Trend
Day
Neutral
Center Day
Neutral
Extreme Day

11. Structural Nuances
• Prominent Point of Control
• Spikes
• Anomalies
• Poor Highs / Poor Lows

12. Prominent Point of Control

13. Spikes

14. Anomalies

15. Poor Highs / Lows

16. How does MP helps in trading?
• Helps in providing context for current market development.
• Adds a dimension to bar charts.
• Helps in identifying advantageous trade locations for better risk
management.
• Reduces the stress in trading.

17. Lets Dive Into Some Examples
We have to answer 2 important questions.....
Where is the market trying to go?
Is it doing a good job of getting there?
Objective is to…..
Assess the Risk of Holding a Long or Short Position

18. Important Factors To Consider
• EOD Analysis,
• Current Balance or Trend if any.
• Inventory Positions of different Time Frames.
• Trade Facilitation,
• Profile Shape
• Associated Volume
• Effort vs Results
• On Trading Day,
• Pre Open
• Opening – Confidence
• Expected Behavior

25. Objectives - Revisited
• Cover some of the essential basics of Market Profile (MP) – Day
Types, Structure.
• See how to spot the 3 core concepts of MP using profile structure –
Day Types, Structure.
• Cover examples showing how to “assess the risk” of a position –
Continuous Market Development on NF.
• Using longer term profiles to get context – NF Long Term Profile
Example.

26. Thank You
The next webinar in this series will be conducted on - 27/01/2017
From 10:00 to 12:00 in the Morning
ORDERFLOW – GETTING THE TIMING RIGHT