ATMASphere Aug 2014

More documents

Recommendations

Info

Understanding Market Profile Introduction Marketprofile is development by J. Peter Steidlmayer and the Chicago Board of Trade. They still possess copyrights for Marketprofile. Marketprofile is very different from traditional technical analysis, Therefore basic is the most important thing as it is little difficult to figure out on your own. 1st of all market profile is not an indicator but a tool to understand the market induced information. Structure of the market profile has been designed so smartly that it will imitate Old school trading in pits. To understand any particular concept easiest way is to connect with something we already knew and pile up on that. For example to understand arrays in statistical analysis we relate with Excel sheet and process gets simpler. Same way if we relate market profile and all the concepts with trading in pits where real Auction of buy and sell takes place it will be lot easier to understand Marketprofile. AUGUST <strong>2014</strong> ATMASPHERE | 18
The Auction The process of auction, Imagine a real auction of coffee beans. For context let's say, price of coffee beans keep increasing since last month from 7000 to 7800. Today for the auction price open at 7800. The process of bidding started. Auctioneer set the price at 7820, open call was too high and didn't get a raise from the men who participated in the auction. Then auctioneer says 7818, 7816, 14... The up auction of the coffee beans since last month was over. Sometimes, in bullish environment price gets accepted at open and start auctioning up from 7820 to 7830...40. Sometimes it goes below, and then gets accepted as underlying fundamentals are strong and there is a demand for the product. Prices get accepted at lower range and start auctioning back and forth. Market participants want to purchase coffee beans to provide demand of their own customers, so they start getting anxious and they jump in the auction and start raising the price, in our example let's assume price went down from 7800 to 7560 and it started auctioning back and forth in this range. And when market participants started raising the price it went up from 7560 back to 7800. Same process has been described in this chart with market profile. Each alphabet is called as TPOs. That is Time Price opportunity. It is bit technical, and it is basic building block of Marketprofile, so we will cover that in second chapter. That's it for now. AUGUST <strong>2014</strong> ATMASPHERE | 19
Page 2 and 3: CONTENTS Letter from the President
Page 4 and 5: EDITOR’S NOTE In this issue - 1.
Page 6 and 7: 2. Symmetrical Triangles: These are
Page 8 and 9: 5 Price action tips that will make
Page 10 and 11: Tip # 3. Look for wide range candle
Page 12 and 13: Rajat Dutta is a system designer an
Page 14 and 15: 5. High quality trades, many times,
Page 16 and 17: method that we will follow. Now why
Page 20 and 21: Hi, I often go with nick name Pit T
Page 22 and 23: Within an average period of less th
Page 24 and 25: World's FIRST E-Library of Technica
Page 26 and 27: AUGUST 2014 ATMASPHERE | 26
Page 28: AUGUST 2014 ATMASPHERE | 28

ATMASphere Aug 2014

Create successful ePaper yourself

Delete template?

Save as template?