In 1982 Peter Steidlmayer, a Chicago Board of Trade Member and Mike Boyle, the Vice President of Technology at the Exchange developed a vertical graphic that captured and demonstrated the market dynamics of price and volume over the course of the trading day. Price and volume data are presented in a logical and visual manner. This original vertical graphic is now described as the market profile chart. This new way of looking at market data allows traders to organize and make sense of real time information.
Market Profile provides traders with an X ray vision into market activity
The first key advantage of the profile chart is that, it provides traders with the best real time view of market activity. The profile chart when combined with other indicators gives an xray view into the market. A trader can actually see exactly what is happening in the market as it happens. Once you are able to understand what is happening in the present, you are able to make far better decisions about what might happen in the future.
Here are other key features of this professional trading tool:
- The Market Profile forces traders to understand the market dynamics
- Market Profile identifies where value is in the market
- Market Profile works in all Market Conditions
- Market Profile is effective for both swing and day trading
- Market Profiling is effective for trading futures, stocks, options, and forex.
Here at the Market Profile Trading Academy we teach students how to use Market Profile tools to define risk and build a narrative focused on pinpointing high probability entries, exits, potential price action.