Mind Over Markets

A timely update to the book on using the Market Profile
method to trade

Emerging over twenty years ago, Market Profile analysis
continues to realize a strong following among active traders. The
approach explains the underlying dynamics and structure of markets,
identifies value areas, price rejection points, and measures the
strength of buyers and sellers. Unlike more conventional forms of
technical analysis, Market Profile is an all-encompassing approach,
and Mind Over Markets, Updated Edition provides traders
with a solid understanding of it.

Since the first edition of Mind Over
Markets--considered the best book on applying Market
Profile analysis to trading--was published over a decade ago,
much has changed in the worlds of finance and investing. That's why
James Dalton, a pioneer in the popularization of Market Profile,
has returned with a new edition of this essential guide. Written to
reflect today's dynamic market conditions, Mind Over
Markets, Updated Edition clearly puts this unique method
of interpreting market behavior and identifying trading/investment
opportunities in perspective.

• Includes new chapters on Market Profile-based trading
  strategies, using Market Profile in connection with other market
  indicators, and much more

• Explains how the Market Profile approach has evolved over the
  past twenty-five years and how it is used by contemporary
  traders

• Written by a leading educator and authority on the Market
  Profile

One of the key elements that has long separated successful
traders from the rest is their intuitive understanding that time
regulates all financial opportunities. The ability to record price
information according to time has unleashed huge amounts of useful
market information. Mind Over Markets, Updated Edition
will show you how to profitably put this information to work for
you.

Auteur

JAMES F. DALTON has been a pioneer in the popularization
of the Market Profile, a unique method of identifying
trading/investment opportunities. He has been involved in the stock
and futures markets for more than forty years. Currently a
full-time trader, Jim advises two hedge funds and several trading
firms. He is a discretionary trader and longtime proponent of
employing the Market Profile to facilitate trading. Jim began his
career in the investment industry as a broker with Merrill Lynch
and Shearson Lehman. He is the coauthor of two books, the original
edition of Mind Over Markets and Markets in Profile
(Wiley).

ERIC T. JONES is a Senior Managing Director and Head of
Advisory Solutions and Product Development at TIAA-CREF. His past
experience includes more than twenty-five years of developing new
investment products and programs designed to help individual
investors more successfully achieve their financial goals and
dreams. Eric is the coauthor of two other books on the financial
markets, investments, and trading: Hedging Foreign Exchange
and Markets in Profile (both from Wiley).

ROBERT B. DALTON is a partner at Karass Creative, a
Seattle agency that bonds brands to tribes by telling stories that
matter. For two decades, he has woven compelling campaigns across
myriad media--from Addy-winning websites to short films and
poetry--for a long list of artistic, nonprofit, and corporate
clients ranging from Starbucks to TEDx. He is the coauthor of
Markets in Profile (Wiley).

Résumé
A timely update to the book on using the Market Profile method to trade Emerging over twenty years ago, Market Profile analysis continues to realize a strong following among active traders. The approach explains the underlying dynamics and structure of markets, identifies value areas, price rejection points, and measures the strength of buyers and sellers. Unlike more conventional forms of technical analysis, Market Profile is an all-encompassing approach, and Mind Over Markets, Updated Edition provides traders with a solid understanding of it.

Since the first edition of Mind Over Markets*considered the best book on applying Market Profile analysis to tradingwas published over a decade ago, much has changed in the worlds of finance and investing. That's why James Dalton, a pioneer in the popularization of Market Profile, has returned with a new edition of this essential guide. Written to reflect today's dynamic market conditions, *Mind Over Markets, Updated Edition clearly puts this unique method of interpreting market behavior and identifying trading/investment opportunities in perspective.

• Includes new chapters on Market Profile-based trading strategies, using Market Profile in connection with other market indicators, and much more
• Explains how the Market Profile approach has evolved over the past twenty-five years and how it is used by contemporary traders
• Written by a leading educator and authority on the Market Profile
  One of the key elements that has long separated successful traders from the rest is their intuitive understanding that time regulates all financial opportunities. The ability to record price information according to time has unleashed huge amounts of useful market information. Mind Over Markets, Updated Edition will show you how to profitably put this information to work for you.

Contenu

Preface xiii

Acknowledgments xvii

Chapter 1 Introduction 1

Chapter 2 Novice 7

Laying the Foundation 9

The Auction 9

Organizing the Day 10

Challenging the Rules 15

The Role of the Marketplace 16

Going with the Crowd 17

Introduction to Day Timeframe Structure 19

Normal Day 19

Dynamics 19

Structural Characteristics 21

Normal Variation of a Normal Day 21

Dynamics 21

Structural Characteristics 23

Trend Day 23

Dynamics 23

Structural Characteristics 23

Double-Distribution Trend Day 25

Dynamics 25

Structural Characteristics 25

Nontrend Day 27

Dynamics 27

Structural Characteristics 27

Neutral Day 27

Dynamics 27

Structural Characteristics 28

Day Type Summary 31

Chapter 3 Advanced Beginner 33

Building the Framework 34

The Big Picture: Market Structure, Trading Logic, and Time 34

A Synthesis: Structure, Time, and Logic 35

Ease of Learning 36

Amount of Information 36

Recognition Speed 37

Trade Location 37

Confidence Level 37

Summary 38

Evaluating Other Timeframe Control 38

Other Timeframe Control on the Extremes 40

Tails (or Extremes) 40

Range Extension 40

Other Timeframe Control in the Body of the Profile 40

TPO 41

Initiative versus Responsive Activity 45

Trending versus Bracketed Markets 49

Key ElementsA Brief Discussion 51

Trending Markets 54

Bracketed Markets 54

The Two Big Questions 56

Chapter 4 Competent 59

Doing the Trade 59

Section I 60

Day Timeframe Trading 60

Day Timeframe Directional Conviction 61

Opening Call 61

The Open 62

The Open as a Gauge of Market Conviction 63

Open-Drive 63

Open-Test-Drive 65

Open-Rejection-Reverse 68

Open-Auction 69

Open-Auction in Range 70

Open-Auction out of Range 71

Summary 73

Opening's Relationship to Previous

DayEstimating Daily Range Potential 74

Open within ValueAcceptance 75

Rejection (Breakout) 79

Open outside of Value but within RangeAcceptance 80

Rejection (Breakout) 83

Open outside of RangeAcceptance 84

Rejection 85

Summary 85

April 13,1989 86

Crude Oil 87

S&P 500 87

Gold 90

Japanese Yen 92

Soybeans 92

Treasury Bonds 92

Summary 95

Day Timeframe Auction Rotations 96

Two-Timeframe Markets 97

One-Timeframe Markets 97

Using Auction Rotations to Evaluate Other Timeframe Control 97

Structure 99

Half-Hour Auctions 100

Extremes 100

Range Extension 101

Time 101

Identifying Timefr…