A market profileA way of reading the market that recognizes either time spent or volume traded at a particular price level. A market profile can be either made up of “TPO’s” (time price opportunities), or volume. TPO’s measure how much time was spent at a particular price, while volume-based market profiles measure how much volume traded at a particular price. Generally, market profile is used in the trading of futures, especially the /ES. ShadowTrader utilizes volume based profiles. term for those participants whose time frame and outlook is of a very long term, perhaps months or years. The theory is that it is these market players that are active when the market is experiencing initiating activityA more one sided trade that takes place when the market pushes out and away from a current balanced area, into a new level where it establishes a new area of value. Initiating activity is generally dominated by the other time frame participants. When the market is experiencing initiating activity, you do not want to fade or go against the trend. You want to get aboard the train as early as possible and ride it to the next stop. See Responsive Activity, Other Time Frame. as opposes to responsive activityTwo sided trade going back and forth between traders that have a short term outlook and are keeping prices contained within a range. For example, when a market trades to or even slightly above a defined range, if sellers become dominant and push the market back down lower, they are said to be “responding” to higher prices. This is the opposite of Initiating Activity. Responsive activity is usually defined by short time frame traders such as daytraders, or pit locals whose inventory has become imbalanced and needs to be corrected. See Initiating Activity..
See Initiating ActivityA more one sided trade that takes place when the market pushes out and away from a current balanced area, into a new level where it establishes a new area of value. Initiating activity is generally dominated by the other time frame participants. When the market is experiencing initiating activity, you do not want to fade or go against the trend. You want to get aboard the train as early as possible and ride it to the next stop. See Responsive Activity, Other Time Frame., Responsive ActivityTwo sided trade going back and forth between traders that have a short term outlook and are keeping prices contained within a range. For example, when a market trades to or even slightly above a defined range, if sellers become dominant and push the market back down lower, they are said to be “responding” to higher prices. This is the opposite of Initiating Activity. Responsive activity is usually defined by short time frame traders such as daytraders, or pit locals whose inventory has become imbalanced and needs to be corrected. See Initiating Activity..
