Markets in Profile Profiting from the Auction Process

by Dalton, James F.; Dalton, Robert B.; Jones, Eric T.

• ISBN13: 9780470039090
• ISBN10: 0470039094
• Edition: 1st
• Format: Hardcover
• Copyright: 2007-02-16
• Publisher: Wiley

Summary

A new approach to looking at financial markets that helps identify profitable investment opportunities Understanding the underlying dynamics of financial markets is an important part of being a profitable investor. Authors James Dalton, Robert Bevan Dalton, and Eric Jones-pioneers in the popularization of the Market Profile-know this very well, and in Markets in Profile they outline an intellectually challenging theory of how markets work, and show readers how they can use this information to improve their decision-making and risk-management skills. The authors demonstrate how the market's natural auction process, in conjunction with the frequently irrational decisions of investors, creates predictable investment opportunities for those who follow certain guidelines. James F. Dalton (Prescott, AZ) has been a pioneer in the popularization of the Market Profile, a unique method of interpreting market behavior and identifying trading/investment opportunities. Robert B. Dalton (Bainbridge Island, WA) is a freelance writer and creative director for a variety of agencies, organizations, and non-profits in the great northwest. Eric T. Jones (New York, NY) has observed markets and investors throughout his 23 years of leading investment manager research teams.

Author Biography

JAMES F. DALTON has been a pioneer in the popularization of the Market Profile, a unique method of identifying trading/investment opportunities. Most recently, Mr. Dalton was director of research for managed accounts at UBS Financial Services. He began his career in the investment industry as a broker with Merrill Lynch and Shearson Lehman.

ROBERT BEVAN DALTON is a freelance writer and creative director for a variety of agencies, organizations, and nonprofits in the great northwest.

ERIC T. JONES has observed markets and investors throughout his twenty-three years of developing investment products and leading investment manager research teams.

Table of Contents

Preface

Acknowledgments

The Only Constant.

The Creation of ERISA

The Rise and Fall of Relative Performance.

The Fall of the Great Bull.

The Rise of Absolute Return.

Succeeding in an Absolute Return Market Environment.

Pure, Unbaised Information.

People Change Markets, Markets Change People

Information.

Fundamental Information.

Rational or Irrational?

Market-Generated Information

The Auctions.Fair Value.Market Profile Fundamentals

Authors' Note.Demystifying Market Behavior

Timeframes.

Breaking Down Market Timeframes.

Scalper

Day Trader.

Short-Term Traders.

Intermediate Traders/Investors

Long-Term Investors.

Your Timeframe Is your Strategy Cornerstone

Auctions and Indicators.

The Search for Value.

Concept Review

Key Market-Generated Indicators.

Perfecting the Art of Visualization

Long-Term Auctions.

Auctions in Action.

The Compound-Auction Process

The EBB and Flow of Balance.

Where Do Trends End and Brackets Begin?

Clarity in the Maelstrom

The Big Picture.

Asymmetric Opportunities and Risk.

Long-Term Strategy Development.

Assembling the Big Picture: Context within Context

Intermediate-Term Auctions.

Convergence and the Bracketing Process.

Defining the Intermediate Term.

The Transition from Bracket to Trends

The Transition from Trend to Bracket.

The Convergence of Intellect and Emotion.

Accelerate the Learning Process

Prelude to a Sea Change.

Hear the Bells A-Ringing.

Countertrend Auctions

The Quest to Do Better than "Normal.

"Oh, the Difference a Few Points Makes

Short-Term Trading.

Analyzing Short-Term Markets.

Common Mind Traps.

When and Where to Look for Short-Term Trades.

Opportunities Around Intermediate-Term Brackets.

Technical Indicators

Your Own Worst Enemy: Your Brain.

Seeking the "Exceptionally Tasty Patterns

"All Prices and Opportunities Are Not Equal.

Ongoing Forensic Investigation.

Looking for the All-Important Reference Points.

Never Be a Laggard A Golden Opportunity.

Fade the Extremes, Go with Breakouts.

"The Expert Reasons Contextually"

Day Trading Is for Everyone.

What's a Day Trader to Do?

What You Don't Do May Be More Important than What You Do.

The Real World in Action Top Down.

Lack of Conviction

Flight to Safety.

Inventory Imbalances.

Correction of Inventory Imbalances

Trend Traders' Trap.

Market Condition.

Yesterday's Trade

Example 1

Example 2

Example 3

Trader Checklist.

The Market Is Open

Open-Drive.

Open-Test-Drive

Open-Rejection-Reverse.

Open-Auction.Day Trader's Checklist

Example 1

Example 2

Example 3

Practice

Practice

Practice

Profiting from Market-Generated Information.

Timeframe Diversification

The New Paradigm

Market Update.

About the Authors

Index

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