Peter’s Premarket Perspective
What is Market Profile
Developed by J. Peter Steidlmayer in 1980 and refined by James Dalton through the groundbreaking text “Mind Over Markets”, market profile is simply a way of organizing market generated information by incorporating the “3rd element” of time in addition to price and volume. Normal, two-dimensional charts are just that, two dimensional. They only show you how high or low price has gone and how much volume traded during each bar. Market profile tells us this as well but also keeps track of how much time was spent at each specific price level, thereby giving us a much better indication of where traders deem prices to be fair versus unfair. This creates enormous opportunities for the educated trader who knows how to read market profile.
Traders Who Don’t Start Their Day With Premarket Perspective Vs Traders Who Do
✔ Don’t understand the difference between price and value, therefore make decisions out of fear because of fast moving prices
✔ Stay on the top of their game by being aware of the difference between price vs value
✔ End up making trading decisions solely on guesswork and feel a.k.a GAMBLING, a surefire way to lose all your money
✔ Are prepared to make money with daily insights and all the key levels marked off on their charts for a successful day
✔ Are constantly confused and always asking “what is this market doing”
✔ Know when to go for bigger gains rather than scalp for small moves because the odds favor it
✔ Make foolish decisions by starting to trade right after the bell everyday
✔ Are skilled at reading overnight action & will recognize opportunity when everyone else is anxious
✔ Run after tiny profits while suffering large losses that wipe out many days of gains
✔ Trade less often and with more precision and with a framework that gets them the gains they desire
Which Trader Are You?