the Market Profile ®concept--and not on trading strategies--because we found that when the CBOT traders grasped the concept, they had no trouble developing . The Market Profile Based Trade Plan. 1. It provides a statistically valid concept. 2. It provides a depth and breadth of information other methodologies cannot. 3. enbillitaco.gq The Artist\'s Way Julia Cameron. Market Profile charts and concepts are relatively new to the invest- ment and trading.
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UNDERSTANDING THE MARKET. Did you know that all prices are set through an auction process? Price is the tool used to advertise value. P i. Technical Analysis Inc., () , enbillitaco.gq TRADING TECHNIQUES Market Profile IN THEORY The concept of Market Profile stems. J Peter Steidlmayer - On Markets - A New Approach To Trading - MARKET enbillitaco.gq - Download as PDF File .pdf), Text File .txt) or view presentation slides.
I also learned from my father the importance of the last 10 percent of any Job. He always said that this was the most important part of any taskthe part that required the greatest discipline. This final effort separates success from failure; it separates the person who always has ten projects 90 percent done from the person who successfully finishes each task; it separates the many climbers who reach the 25,foot level on Everest from the few who reach the summit.
The same philosophy applies to trading. The willingness to follow through on a task marks the difference between those who are almost successful and those who achieve their goals. In my family, we also learned to recognize the abilities of others.
Some people always have more talent than you, some less. Don't compete outside yourself; try to be the best you can within your own abilities. But learn from observing yourself and the many types of people around you. As we reached the foothills around four in the afternoon, about four hours from our destination, we got a flat tire and stopped at a tire shop in Orville, California. In those days, truck tires were complicated to take apart and put back together, so at about ten to five they were still working on it.
My father was anxious to get on with the trip. The mechanic wanted to quit work at five, so both men wanted to get the Job done. I watched them take the tire apart trying to put it together again and again, emotionally beating at the tire with a hammer and swearing at it.
Finally, I piped up, "Why don't you put the tire back together the opposite way you took it apart? Steidlmayer on Markets I learned that by watching you can perceive a sense of order. Emotions and impatience don't produce results; observation and understanding do. I've found the same to be true in trading. When working the land, there was pride in the different chores we were given.
A Job had to be done according to Standards that were acceptable to our parents and to the ranch. More importantly, it had to meet our own Standards first, before we even showed anyone the completed Job. In my family, your Job was you a reflection of your Standards.
The full-time ranch workers did a good Job with the cashflow crops, but not s well with the fill-in Jobs, which kept them occupied during slack times. One of these Jobs was irrigating the back pasture. The back pasture wasn't levelled, so you couldn't get water across it. If you were irrigating a bean or a corn crop, which was planted on level ground, you were expected to make sure water got over every inch.
But everybody slacked off on the fill-in Jobs because no one ever checked them. But when I was asked to irrigate the back pasture, I designed a system of dams to get water all over the field, which had never before been fully irrigated. No one ever knew, but that didn't matter; I got personal satisfaction out of doing it. I realized that if I stayed within the accepted Standards for the Job, I wouldn't learn anything. By stretching myself beyond the Standards, forcing myself to do more, I learned a lot.
Another experience taught me to have confidence in my abilities and to take control of a Situation. I was riding with our dogs on the back edge of a trailer that my dad was pulling behind the pickup truck.
We were moving down a rugged road at about 25 miles an hour. Suddenly, the trailer hit a bumpy Stretch of the road, and I realized that 8 I couldn't hang on because there was no place to grip on the back of the trailer. I pictured myself falling off the truck onto the rocky road.
I could see that if I feil, I would probably break my arms and possibly die. I panicked. I started to scream, and the dogs began to bark, but my dad couldn't hear over the noise of the pickup and the rattle of the bounding trailer.
Fortunately, I figured out a way to avoid disaster. By lifting my body off the truck with my arms and tilting my weight back towards my head, I was able to absorb the bounce in my arms and keep my balance. I rode that way for about three-quarters of a mile, until we got to the shop. I never told my father about this experience, although I'd been really scared by it.
I learned not to accept disaster. In this episode I fought off disaster with my brains and my muscles and I gained confidence in my own abilities s a result. One Saturday, when I was about eleven, I wanted to hunt ducks.
It was a rainy day with a strong south wind, and there were ducks and geese all over the ranch. My brothers and I had to move about 1, sheep from one ranch to another before I could go hunting.
My father warned me not to cut across the fields with the sheep. But s we proceeded, I grew more and more anxious to go hunting because we were passing right by the ducks and geese.
Finally, I told my brothers that we should take the sheep across the field to get to the other ranch faster. As we approached the middle of the field, about sheep got stuck in the mud.
Now, if you can image a sheep up to. IF" Steidlmayer on Markets her belly in mud, with her wool fll of mud each weighing more than I did and multiply that by , you can imagine what we were dealing with. All the ranch hands got off at noon on Saturdays, but not that week. Everyone worked until 3 P. No one complained, but I realized that my selfish interest had given a lot of people a lot of extra work. From that experience I learned not to put myself first.
To me, success in trading also requires unselfishness. When you're in the pit, you have an Obligation to other traders and brokers in the pit to contribute to the wellbeing of the marketplace, not just to seek your own profit. The marketplace comes before you or any other individual trader.
At harvest time, my father wasn't speculating for big gains. He wanted a fair price for his crop in order to make a normal profit for his work and his capital investment.
If the price at harvest time was fair, he sold; if not, he held and stored the grain. When downloading, my father wanted a fair price s well. I remember going with my father shopping to download all the groceries for the camp. He knew the price of everything, and he always bought sale items. If the price was too high he wouldn't download; he would substitute or go without. He had a list of what he thought each item should cost, and he'd check off the list when he got to the counter to make sure they didn't make any mistakes in adding up the bill.
When my father had the Option of downloading some used farm equipment, he behaved just s the ranch workers did when they were downloading a used car. If the car was undervalued, they would download it; if it was overvalued, they wouldn't. Then it reverses and moves down until there are no more sellers. The end of an up auction is the beginning of a down auction, etc. All market activity occurs within this broad framework-with the market moving up to shut off downloading and down to shut off selling.
Getting a little more specific, we can say that the market begins, moves directionally and advertises for an opposite response to shut off the directional move. What does it mean? Say the market moves up directionally and the up move brings in selling.
The selling is an opposite response which one stops the up move-in other words, shuts off the downloading-and two causes the market to reverse and move down. The result: the up auction ends and a down auction begins. Now let's say the market moves up and advertises for selling but doesn't get any. Instead, it brings in more downloading.
Therefore, the market has to move higher to bring in an opposite response. The result: the up auction continues.
At bottom, that's what you're always looking for: continuation or change. Now if we get even more specific, we can say that a directional move establishes parameters that contain the auction's price range, an unfair low at the low end and an unfair high at the high end. Unfair high Once the market defines a range with excesses at each end, it negotiates within that range to establish value.
The market trades between the established excesses until it either trades above the high excess or below the low one. Stop the market at any point in time and you'll see these three reference points: unfair low, unfair high and value somewhere in between.
These three price areas define the negotiating process-the method the marketplace uses to facilitate trade.
What does this mean in a real market situation? Value To demonstrate, let's look at a bar chart of the Dow Jones from April to the end of October The unfair high on this chart point A was established in August , the unfair low point B in October You can see that these parameters were containing the market's long-term range at that time.
A new unfair high at the level was established in June The negotiating process moved value up gradually from the unfair low to the unfair high.
Value reached the unfair high point C on October 13,