TRADING PRICE VERSUS

TRADING PRICE WITH

CONTEXT
BY

JIM DALTON
MARCH 10, 2016
PRICE WITH CONVENTIONAL CHARTING IS
ONE DIMENSIONAL
Price data points:

Open

The high

The low

The close
Price is studied and examined using:

Price based momentum indicators

Mathematical analysis such as Fibonacci

Trend lines, moving averages, relative
strength,, regressions, candles, etc.
strength

Price based patterns such as head and
shoulders, flags, pennants
MARKET PROFILE IS THREE DIMENSIONAL
THE PROFILE UTILIZES:

Price as an advertising mechanism

Time as the regulator of all opportunities

The combination of time and price provides
a 2 dimensional view of the market

Adding volume to the analysis gives you a
three dimensional view of the market

The addition of time and volume adds
exponential information to our analysis
CONVENTIONAL CHARTING IS ONE DIMENSIONAL
THE MARKET PROFILE IS THREE DIMENSIONAL
THE MARKET PROFILE GRAPHIC ALLOWS
US TO ORGANIZE THIS DATA
 A GRAPHIC IS A VISUAL REPRESENTATION OR
FRAME USED TO ORGANIZE INFORMATION
 THE MARKET’S TWO-
TWO-WAY CONSTANT AUCTION
PROCESS GENERATES CONTINUAL NEW AND
CLARIFYING INFORMATION THROUGHOUT THE
TRADING SESSION
 WITHOUT THE ABILITY TO ORGANIZE THIS
INFORMATION YOU WOULD DROWN IN A POOL
OF DATA. A GRAPHIC HELPS YOU DO THE
FOLLOWING:
 THE MARKET PROFILE HELPS TO:
1. ORGANIZE THE DATA LEADING TO BETTER AND
CLEARER DESCRIPTION OF THE CURRENT
MARKET--INCREASES CLARITY
MARKET
2. ASSIST IN ACTIVATING PRIOR KNOWLEDGE; YOU
WILL GAIN ASSISTANCE IN CONNECTING PRIOR
CONCEPTS THAT YOU HAVE SEEN IN SLIGHTLY
ALTERED STATES
3. COMPARE AND CONTRAST PRIOR SETTINGS AND
AUCTIONS..
AUCTIONS
4. BETTER ENABLES YOU TO RECOGNIZE REPETITIVE
PATTERNS
THE MARKET PROFILE HELPS TO:
5. BETTER ENABLE YOU TO RECOGNIZE
DEVELOPING MARKET STRUCTURE. THIS
LEADS TO A BETTER FULLER TRADING
IMAGINATION
6. BETTER ABLE YOU TO RECOGNIZE AND
SORT OUT IMPORTANT DETAILS AND
NUANCES
7. INCREASE YOUR ABILITY TO PREDICT
MARKET BEHAVIORS
8. EASES YOUR ABILITY TO PLAN FUTURE
TRADES
 THE MARKET PROFILE
THE MARKET PROFILE EXPOSES THE
TEXTURE SURROUNDING EACH PRICE OR
SERIES OF PRICES

EACH PRICE IS SEPARATE,; HOWEVER, IT

IS THE OTHER CIRCUMSTANCES
SURROUNDING THAT PRICE THAT GIVES
US A REAL DEPTH OF UNDERSTANDING

LET’S EXAMINE THE ABOVE THROUGH

REAL--TIME MARKET EXAMPLES
REAL
 2016 LEGACY SERIES INTENSIVE II
OFFICIAL START APRIL 4, 2016
* JD Member access to our archive of over 100 articles (a book
in themselves!) and 85 webinars to ‘drill down’ into concepts
Jim is applying daily
* Starting Immediately — Two Daily Reports: S&P Morning
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he tracks the auction in real-
real-time
* New — Options Trading Methodology —Never Taught Before
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In-depth Segment Discussing Self
Understanding as it Relates to Market Understanding
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level of learning.