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A couple other points on Market profile:
1. The standard version uses 30 min intervals which forces the user to be
more intermediate term in his/her approach, and less swayed by every one
minute zig and zag.
2. As mentioned, it provides a good idea of value, i.e. price+time=value.
This is something that is missed when using a bar chart. By knowing at what
price level the market spent the most time trading, you can get a good idea
of strength/weakness by comparing to other days value areas.
3. Furthermore, it is a great discretionary trading tool, because it
introduces another variable (the idea of value) and is easily+quickly read
by simply looking at the display. So, if one takes the basic principles of
MP theory, and then studies a number of yrs. of data, you should be able to
see the market with a little more complexity and detail that is missed by
other indicators. In short, its a good tool to "record" experience since it
is a somewhat simple tool, that has enough complexity to provide a good read
on market activity.
4. If you want to really learn it well, I recommend hand drawing the
profiles. That will really put you in touch with how a day forms.
Regards,
Chris Lober
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