Deconstructing the Market: The Application of Market Profile to Global Spreads
Deconstruction, a method of analysis that emphasizes the relational quality of meaning, involves discovering, recognizing, and understanding the underlying—and unspoken and implicit—assumptions, ideas, and frameworks that form the basis for thought and belief.
Most spread traders are accustomed to working with line charts that show the value of the spread at discrete points in time, connected by lines. For example, Figure 9.1
is a daily chart of the 10-year U.S. Treasury notes versus the 10-year EuroGerman Bund spread with a ratio of 100:55.
This type of chart is not very conducive to technical analysis. There is a lot of information here, ...